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NESO Says Faster Net-Zero Path Adds £350bn Versus Slower Route

Officials dispute the modelling that critics portray as a £500-a-year hit per household.

Overview

  • NESO estimates the UK would save about £14 billion a year by forgoing the 2050 target, roughly £500 per household and about 0.4% of GDP.
  • The analysis contrasts a net-zero-aligned pathway with mass heat pumps, expanded offshore wind and nuclear against a slower route that retains widespread gas use and misses net zero.
  • Both pathways show total energy-related costs falling from the 2030s, with the net-zero route becoming the cheaper option only after about 2046.
  • The premium is highly sensitive to gas prices, averaging about £19 billion a year if gas is cheaper than forecast and around £5 billion with higher gas prices, with cleaner power offering more protection from price shocks.
  • NESO says the scenarios are illustrative, exclude carbon tax transfers and some local benefits; DESNZ rejects the figures while Conservative leaders amplify them to oppose strict 2050 commitments.