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Typical annual energy costs could reach £1,790 by the end of the decade

British households could see their annual energy bills rise by almost £130 by the end of the decade, despite Labour's pledge to cut costs by £300.

EDF has forecast that a typical household could be paying around £1,790 a year by 2030, up 13 per cent from the current £1,663.

The French state-owned energy giant, which operates all of Britain's nuclear power stations as well as a number of wind and solar sites, said rising green levies and the cost of upgrading the energy network would be largely responsible for the increase.

Its latest forecast is also £40 higher than its previous estimate.

Analysis by Matt Levenston, EDF's head of energy systems, and policy chief Dan Alchin suggests bills could remain high for years even if wholesale gas prices fall.

This is because lower wholesale costs are expected to be offset by the growing cost of decarbonising Britain's energy system and investing in the electricity network.

EDF said: "Electricity prices are rising more than gas prices as increasing non-commodity costs, including policy and network charges, offset easing wholesale costs."

The warning comes as households brace for another increase in the energy price cap.

Ofgem is expected to announce on Wednesday that the cap will rise by £66, with Cornwall Insight forecasting typical annual bills will reach £1,729 for the October to December quarter.

If confirmed, this would push household energy costs to their highest level in three years.

The increase is also expected to wipe out the savings from Prime Minister Andy Burnham's decision to scrap VAT on domestic electricity, which is estimated to save households around £45 a year.

The outlook raises further questions over Labour's commitment to bring household energy bills down by £300.

Sir Keir Starmer repeatedly promised during the 2024 election campaign that bills would fall by £300 before 2030.

Mr Burnham, who succeeded him as Prime Minister in July, has since said he wants to give households a "sense that help is coming" on prices.

However, EDF warned that even with short-term relief from Government measures, household energy bills are likely to remain "stubbornly high at the end of the decade".

Office for Budget Responsibility data reinforces this outlook, with subsidies for renewables and other environmental charges projected to add £19billion to energy bills by 2030, nearly double the £10bn burden in 2025.

These costs come on top of levies earmarked for a £70billion overhaul of the national grid, essential to preparing the network for a decarbonised energy system.

Labour earlier this year moved the renewables obligation, a green subsidy scheme, off household bills and onto general taxation.

However, that shift to general taxation is due to lapse in 2029, while the VAT reduction on electricity bills will expire in April.

EDF calculates that extending both measures through to 2030 would trim around £90 from its projected £1,790 figure.

The price tag for maintaining these twin interventions would be substantial, with EDF estimating a cost to the public purse of £3.5billion.

Without such an extension, households face the full weight of rising network and policy charges with no offsetting relief.

The Department for Energy Security and Net Zero was approached for comment on EDF's projections.