British Gas Boss Warns Of Net Zero Costs And Calls For Fair Energy Levies

Chris O’Shea, the chief executive of Centrica, the owner of British Gas, has issued a stark warning to policymakers as the UK navigates its path to net zero. In an interview, O’Shea urged the newly appointed Energy Secretary Ed Miliband to avoid shifting green levies onto gas bills, describing such a proposal as an “abomination” that would unfairly penalise low-income households.

Government advisors and the Climate Change Committee have suggested removing net zero levies from electricity bills to incentivise the switch to heat pumps and electric vehicles. The plan would see those costs transferred to gas bills to make gas boilers less attractive. O’Shea sharply rebuked this logic, arguing that better-off homeowners already using heat pumps would effectively be subsidised by those still reliant on gas, many of whom are less able to afford a switch or higher bills.

O’Shea believes these measures would create a “terrible distortion of the market,” warning that the longest-standing gas users, who are often the least affluent, would shoulder disproportionate financial burdens. He advocates moving the cost of green levies onto general taxation rather than increasing the cost disparity between energy consumers, suggesting a more equitable way of funding the country’s transition towards net zero emissions by 2050.

The Centrica chief expressed scepticism about Miliband’s promise to reduce household energy bills by £300 within this parliament, noting that the energy transition is both expensive and complex. While agreeing that renewables offer future price stability and security through domestic production, he questioned whether the savings forecast is realistic on the proposed timeline.

Centrica’s approach to net zero remains pragmatic, maintaining investments in both traditional and green energy solutions while withdrawing from unprofitable UK wind and solar projects. The company is now exploring wind power in Ireland, reflecting the shifting commercial landscape of renewables in Britain.

On the subject of energy market reforms, O’Shea strongly opposed dividing the UK into energy pricing zones—a scheme supported by Octopus Energy—as this would result in higher regional disparities and a “postcode lottery” for consumers. The idea was ultimately abandoned by the government, a decision British Gas supports given the existential focus on supporting those struggling with energy costs.

O’Shea also sounded the alarm over the future of the Rough gas storage facility, which is currently running at significant losses. With Rough accounting for half of the UK’s gas storage capacity, closure could leave the nation with only six days of reserve supply and further expose the country to future energy crises. Centrica is seeking government support through a cap and floor mechanism to sustain and redevelop the site for hydrogen storage, warning that failure to secure backing would risk both local jobs and national energy security.