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British Gas CEO Warns Labour’s Net Zero Plans Risk Unaffordable Bills

The caution comes after Ofgem said part of recent price-cap rises stem from policy costs introduced since Labour took office.

Overview

  • Ofgem’s latest adjustment lifted the typical annual cap by about £35 to £1,755, taking the total increase since Labour took power to £187.
  • Centrica reports around 7.5 million British Gas customers are under sustained pressure from higher energy costs.
  • Chris O’Shea backed growing wind and solar capacity, saying greater renewables can curb the extreme volatility seen after 2022 but the transition must remain affordable.
  • He urged a debate on homegrown supply as Labour holds to its pledge to stop new North Sea licences, arguing UK-produced gas is often cheaper and cleaner than imports.
  • He warned of risks to jobs and communities during the shift away from fossil fuels, citing lessons from Fife’s mine closures and urging faster delivery of green roles.