MILLIONS of households are facing a £100 rise in their energy bills next year due to the Government’s net zero policies, according to new analysis.

Energy analysts Cornwall Insight said changes being made to push the country towards net zero will fuel a rise in energy bills for the average household.

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It predicted the changes will add more than £100 to the energy price cap in April 2026 compared with January.

The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy and standing charge, and it’s updated every three months.

Cornwall Insight said bills will increase for households because of the cost of connecting new wind and solar farms, the construction of the Sizewell C nuclear power station, and upgrades to the gas networks.

It also suggested further rises will follow later because of the construction of pylon lines, underground cables and substations.

It means households are likely to be paying more for their energy at a time when inflation remains high and many are struggling with the cost of living.

The UK has legally committed to achieving net zero greenhouse gas emissions by 2050.

This means the total amount of emissions produced is equal to or less than the amount removed from the atmosphere. 

But the Government is having to balance this with extra costs to households up and down the country.

Ahead of the election, Energy Secretary Ed Miliband had pledged to cut household energy bills by £300 by 2030.

He repeated that promise again last month.

Cornwall Insight’s Dr Craig Lowrey said investing in renewables would eventually reduce bills and it was necessary in the long run.

But he said: “Rising energy bills are never welcome, and this latest view of transmission charges – although only indicative – will add yet another cost to the long list of pressures on household finances.”

The average energy bill for a dual-fuel home is currently £1,720 per year.

However the energy price cap is set to rise at the beginning of October, bringing it to £1,755.

Yet another rise is expected in January because of seasonal increases in wholesale costs.

The £100 bill increase predicted by Cornwall Insight is unrelated to the wholesale cost of gas.

The experts say it’s due to the cost of maintaining and expanding the UK’s power grid.

It said electricity network costs alone would add £30 a year, and this will rise to £50 a year by 2028.

Meanwhile green levies will add another £18, including £12 of advance payments for building Sizewell C.

Upgrading the gas network, which is partly needed to accommodate the introduction of green hydrogen, will add another £53.

Cornwall Insight said the bill increases were “not totally unexpected but highlight potential further financial pressures than households will face”.

It’s expected households will end up paying higher standing charges.

A standing charge is a fixed daily fee added to your energy bill, charged by your supplier regardless of how much energy you use.

Increasing standing charges is controversial as households aren’t able to avoid paying them.

While you could bring down your energy bills by cutting down on how much energy you use, there isn’t a way of reducing the cost of a standing charge.

This can leave struggling households forced to pay extra.

Ofgem has said households will later feel the benefit of an expanded electricity network through their bills, but this will take time.

Dr Lowrey said: “These costs are not just another item to tag onto the bill, they are essential to the long-term security and affordability of Great Britain’s energy system.

“For years, households have been at the mercy of global energy markets, with prices soaring and crashing in response to events happening thousands of miles away. It’s unpredictable, and it’s ultimately unsustainable.

“Investing in Britain’s transmission network means building a cleaner, more resilient energy system – one powered by renewables grown right here at home. Yes, it will take time. Yes, it will cost money. But every pound we invest today is a step toward a future where our energy is not only greener, but also more secure and, in time, more affordable.

“People rightly expect renewables to bring bills down, and they will. But first, we need to lay the foundations. There are a lot of costs involved in the transition, but the costs of doing nothing will be far greater.”

Help with energy bills

If you are struggling with your energy bill then there is plenty of support on offer.

For example, the Winter Fuel Allowance offers £300 to pensioners to help cover the cost of their heating during colder months.

Around 75% of pensioners are expected to receive the support this year, after Labour U-turned on the tighter eligibility criteria it announced last winter.

Struggling families can also get access to money through the Household Support Fund (HSF).

Each council in England has been allocated a share of the £742million fund and can distribute it to residents in need.

Exactly how much you can get and how the money will be paid depends on your council and situation.

Plus, thousands of households will receive the Warm Home Discount, which is worth £150.

The discount is given to households on a low-income or claiming certain benefits, such as Universal Credit.

It is not paid as cash and is instead applied as credit to your energy bill.

If you are falling behind on your energy bill then you can also get help through your energy supplier.

British Gas has announced a £140million support package to help customers facing financial hardship.

This includes free energy grants, tailored support for households and small business customers and funding for advice centres and charities.

It has also launched You Pay: We Pay, which gives households the opportunity to have their payments matched by British Gas for a period of six months.

Octopus Energy’s £30million Octo Assist fund is designed to help customers keep on top of their energy bills.

It includes free electric blankets, Winter Fuel Payments and standing charge waivers.

EDF’s Customer Support Fund gives grants and help to vulnerable customers who are struggling with energy debt.

It can support customers with electricity or gas bill debts, and provide essential white goods such as a fridge or cooker.