CCC: What The UK Needs to Do to Speed Up Electrification

While the market for EVs continues to expand, broader electrification across the UK’s energy system is failing to keep pace.

The UK Government’s Climate Change Committee (CCC) progress report for 2025 underlines the scale of the challenge facing the country’s energy transition.

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

However, momentum in electrification has weakened. Installations of heat pumps in existing homes rose by just 7%, a sharp slowdown from 56% growth the year before.

Electricity’s share in industrial energy consumption also edged down, leaving businesses more exposed to fossil fuel price swings and placing future carbon targets at risk.

“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."

Although some high-profile electrification initiatives have been delivered with state backing, including projects at Port Talbot steelworks, progress in industrial energy electrification remains minimal.

The proportion of electricity used across industry even declined slightly over the past year.

The energy cost barrier

The CCC identifies energy pricing as the central obstacle to faster electrification, particularly for industrial users.

For many energy-intensive businesses, the ratio of electricity to gas prices remains above 4:1, making a shift to electric systems financially difficult without major efficiency gains.

“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.”

Accelerating the electric energy transition

The CCC is calling for faster action to modernise the UK’s energy system, including speeding up grid connections and removing policy and network costs that inflate electricity prices.

It also highlights the need to accelerate EV adoption through wider access to affordable charging infrastructure and to scale up heat pump deployment, particularly in lower-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.”