CCC: What The UK Needs To Do To Accelerate Electrification

While the market for EVs is thriving, the electrification of other areas of the UK economy is lagging behind. 

The UK Government’s Climate Change Committee (CCC) report on progress toward 2025 highlights the extent of this challenge.

UK emissions fell by 1.8% last year, supported by record new renewable energy contracts and a 26% increase in peatland restoration.

However, the progress of electrification has slowed. Heat pump installations in existing homes increased by only 7%, compared to 56% the previous year.

The share of electricity in industrial energy use also declined slightly, increasing exposure to fossil fuel price volatility and jeopardizing future carbon budgets.

“The government needs a more ambitious plan to electrify these key parts of the economy, including further action to reduce the cost of electricity,” the CCC concludes.

Since the start of the Iran war, UK households with gas boilers and petrol cars have experienced energy bill increases that are nearly four times higher than those of households with heat pumps and EVs, according to the CCC.

“A typical household could save around £1,200 (US$1,580) a year today by combining an EV, a heat pump, solar panels and a time-of-use tariff."

While there have been some high-profile, state-subsidised electrification projects, such as at the Port Talbot steelworks, widespread industrial electrification has made almost no progress.

And the share of electricity in industrial energy use actually fell slightly last year.

The cost barrier

According to the CCC, economic factors are the main obstacle for manufacturing and industrial sustainability leaders.

For many large users, industrial electricity-to-gas price ratios remain above 4:1, making fuel switching financially challenging without significant efficiency improvements.

“The transition to clean electricity is not happening fast enough,” says Nigel Topping CMG, Chair of the Climate Change Committee. 

“Government support to accelerate the shift to electric vehicles and heat pumps is critical, not only to keep our climate targets within reach but to unlock savings. 

“This is about more than targets, it’s about cleaner air, energy security and shielding the economy from fossil fuel shocks.

"Ultimately, this is about putting money back into people’s pockets.” 

The call to action

The CCC recommends that the government accelerate grid connections and remove network and policy costs that increase electricity bills.

It also suggests supporting a faster transition to EVs by expanding affordable charging infrastructure and accelerating heat pump installations in buildings serving low-income households.

“The UK isn’t electrifying fast enough, and households and businesses are paying the price,” says Helen Clarkson, CEO at Climate Group.

“Companies looking for energy security and resilience will be investing where governments are backing electrification, smarter grids, storage and a modern energy system led by renewables.

“If the UK wants to compete as a smart electric economy, the next Prime Minister must lock in the progress that’s already underway.”