Gas bills could rise by £1,000 for millions of homes by 2035 under new plans

Gas bills could shoot up by around £1,000 to pay for wind power under plans being considered by the Energy Secretary.

A report sent to Claire Coutinho earlier this year suggested moving green levies from household electricity to gas bills.

The levies could also be shifted into general taxation, the Telegraph reports.

The plans have been presented by the Department for Energy Security and Net Zero (DESNZ) amid concerns that the cost of green levies on households is slowing down the progress on net zero.

However, the proposals could prove controversial because of the added costs to households relying on gas.

An analysis by Cadent found energy bills could rise by £1,045 a year by 2035 for millions of homes that rely on gas if the plans were given the green light.

The gas company also found that low-income families would be hit hardest by the move.

Adding levies to gas bills would also spread the costs among fewer households and experts have warned fuel poverty may be exacerbated.

The plans were going through consultation before Rishi Sunak called a snap General Election and any decision will have to be made by the next Government.

Telegraph sources close to Ms Coutinho said she continued to receive advice on the plans, adding that her priority was to keep bills down for households.

Dr Tony Ballance, chief strategy and regulation officer at Cadent, warned the company’s research showed one of the options might “disproportionately impact some of the most vulnerable people in society”.

Labour declined to comment on the plans and DESNZ did not immediately respond to the Telegraph’s request for comment.