Millions of households face 9% gas bill hike to cover the cost of neighbours switching to heat pumps

9 comments 9 Next MILLIONS of households face increased energy bills as more of their neighbours are switching to heat pumps. An estimated seven million households are expected to disconnect from the gas network and move to more environmentally friendly technology like heat pumps by 2034-35, energy regulator Ofgem has said. More people moving to heat pumps could result in higher gas bills for other households Source: Getty Heat pumps are an energy efficient and sustainable way of heating your home Source: Getty Advertisement However, the cost of disconnecting could leave other households who are still on the gas network with bigger bills .

That’s because around three-quarters of gas disconnections are paid for by energy network operators. Sign up for the Money newsletter Thank you! Email address Please provide a valid email. Your info will be used in accordance with our Privacy Policy You'll now receive top stories, breaking news, and more, straight to your email. The costs are then recovered through gas bills. At the moment, the cost of gas disconnections only adds around £1 to the average gas bill per year.

Read more on energy bills BILL BLOW Over 800,000 families to miss out on £100 energy payment – will you get it? STAYING TOASTY 7 energy gadgets that will cut your heating bills - they cost NOTHING to run But the Government has been pushing for more households to install heat pumps to meet its net zero targets, aiming for 450,000 installations a year by 2030. It means a typical gas bill, which currently costs £865 a year, could increase by as much as 9.3% by 2034-35, Ofgem said.

This would see gas bills rise to around £943 a year. Ofgem said in a recent report: “As the UK progresses to net zero and consumers move to low-carbon heating, there will be costs associated with disconnecting consumers from the gas network. Advertisement Most read in Money RATE SHOCK Millions hit by Bank of England rate hike - and warning of Xmas 'Grinch' rise AXE FALLS British telecoms giant slashes 11,700 jobs in brutal year-long cull SHOP SHOCK Nation's cheapest supermarket revealed as Brits warned of £61 gap between rivals JOBS ARMY Major UK employer offering 40 apprenticeships starting next year - how to apply “Under current arrangements and without government intervention, the majority of these costs would be recovered through network charges paid by the remaining gas consumers.”

Heat pumps are energy efficient home heating systems powered by electricity. They use around four times less energy than even the most efficient boilers and are cheaper to run. However, they are costly to install initially with an average cost of £5,408 – which means they’ve mainly been adopted by wealthier households so far. The Government does have a Boiler Upgrade Scheme to incentivise households to replace gas boilers with heat pumps by providing grants of up to £9,000.

Advertisement But critics argue it’s still mostly more well-off households that are installing heat pumps – and those who can’t afford it are paying even more through higher gas bills. Mike Foster, from trade association Energy and Utilities Alliance, told The Telegraph: “For those advocating replacing gas boilers with heat pumps the question they must answer is how to pay for disconnections and decommissioning fairly. “Simply charging those left on the gas network, likely the least well-off, to pay for the disconnection of those who can afford to buy and run a heat pump is inherently unfair.”

A Department for Energy Security and Net Zero spokesperson said: “As more households move towards low-carbon heating, we are working with the sector to ensure this is done in a fair and affordable way for all.” 9 comments 9