Hydrogen will play a crucial role in decarbonising power and some heavy industry. However, hydrogen is a poor option for domestic heating and would substantially increase consumer bills relative to other heating technologies. Promptly ruling out further public spending on domestic hydrogen heating will be critical to secure affordable energy bills, and to enable effective long-term transition planning for networks and workers.
Further delay risks billions of pounds of unnecessary gas network investment and expansion – increasing consumer bills and further inflating the liabilities associated with disconnection and decommissioning. It also undermines efforts to give workers a say in their future and plan a transition which guarantees good quality, unionised jobs for decades to come.
The UK must act quickly to put the public interest before those of gas network shareholders. Government has promised to consult in 2025. To keep bills down for consumers, government should follow this consultation with a clear decision by the end of 2025 – providing clarity before the start of the next gas network price control.
An alternative vision for UK hydrogen
Hydrogen is a scarce and expensive resource that is not suitable for domestic heating. However, that does not mean it has no role to play in delivering decarbonisation – in fact it will be critical to supporting a reliable clean power system and producing low-emissions materials such as steel. To play this vital part in transforming the UK’s fortunes, its use will need to be carefully prioritised.
Recommendations
To secure affordable energy bills, now and in the long term, the UK should:
- Rule out further public subsidy for domestic hydrogen heating.
- Prevent unnecessary gas network spending to stop further energy bill rises.
- Limit future decommissioning costs by halting gas network expansion.
- Develop a long-term transition plan for gas networks and gas workers.
- Ensure all consumers can access other low-carbon heating solutions.
