The CCC said electricity is now four times as expensive as gas in terms of the energy each provides – the biggest cost gap in Europe – and said this is the key reason why UK heat pump uptake is so slow.
The Government has already moved some green levies – known officially as “policy costs” – from bills to tax.
The Renewables Obligation, a levy used to subsidise early wind farms, was adding about £7bn a year to bills, but Rachel Reeves, the Chancellor, moved 75pc of the domestic component on to taxation at a cost of about £2.3bn at her last Budget.
Claire Coutinho, the shadow energy secretary, said the priority had to be on cutting the price of electricity rather than racing to net zero.
“It defies common sense to shut down our own industry in the name of climate change, just to import more goods from countries like China, which are still powered by coal,” she said.
Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders, said: “The dependence on electrification to deliver our climate goals is self-evident, but the pathway cannot be built on blind optimism.
“Reducing surface transport emissions is essential, but energy prices remain too high, production costs uncompetitive, charging infrastructure at best uneven and natural demand too low.”
A Department for Energy Security and Net Zero spokesman said: “The main driver of high energy costs are global gas prices, which have also pushed up electricity prices.
“We are driving forward the biggest public investment in home electrification in history through our £15bn warm homes plan, cutting bills, upgrading homes and lifting families out of fuel poverty.”
