There’s a straightforward way to solve the energy bills crisis – but our politicians are asleep at the wheel

It requires precisely the kind of long-term thinking and spending the government has an aversion to – giving people a one-off cheque is far more electorally popular

Political commentary can sometimes make our problems, and their solutions, sound more complicated than is necessary. Britain’s energy bills crisis is a prime example of this overcomplication.

The reason why energy bills are so high is natural gas. The price of natural gas across Europe has recently shot up by a colossal 1,400 per cent of the average price over the last decade. In contrast, the price of oil has merely doubled since before the pandemic struck.

This is also very much a European crisis. Asia and the United States get most of their natural gas supply from local exporters, while Europe is reliant on Russia. This is why gas prices in Europe are 700 per cent higher than in the US right now. We get most of our supply from Russia, through its pipelines. I wrote recently that Russia would weaponise its gas supplies to choke Europe, and so it has come to pass.

But what have gas prices got to do with energy bills? Britons use gas to cook food (even though electric induction hobs are much better for your health) and to heat their homes. That will now be far more expensive. But natural gas also determines the price of our electricity, even though solar and wind power are far cheaper. Why? Our electricity market is structured in a way that means the most expensive fuel used to fulfil the demand sets the final price. That’s usually natural gas.

The UK is overexposed to this crisis. More than 85 per cent of British households use gas heating, and around 40 per cent of our electricity comes from gas. So are we stuck with this awful state of affairs? No, we are not. There are some straightforward solutions, for the government and for households.

First, the government can change how electricity is priced. The UK government is consulting on this possible reform, but it doesn’t have to take years. It could decide to make the change tomorrow if it wanted to.

More importantly, we now need a national emergency drive for insulation. Britain has some of the oldest and least energy-efficient housing in Europe, and around 19 million homes need much better insulation in order to cut gas use for heating. So far, the government has ignored this problem. It would be far cheaper to insulate homes than to pay everyone’s gas bill, especially as the problem would simply come up again next year.

Plus, if you’re a homeowner, installing solar panels on your roof could save you £405 on your annual electricty bill, and these panels will pay for themselves in a decade or so.

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So why aren’t more people talking about these solutions? Well, because insulation is not a sexy topic, especially in Westminster or on social media. It’s far more exciting for everyone to focus on the daily noise of who is ahead in the polls. Implementing energy-efficiency measures involves precisely the kind of long-term thinking and spending the government has an aversion to; giving people a one-off cheque is far more electorally popular.

Much of the left is unfortunately focused on nationalising energy companies – an idea I’m firmly against, as it will neither cut bills nor drive the UK faster towards cheaper, cleaner energy.

This year alone, household energy and fuel costs are predicted to rise to £193bn – more than the government’s budget for education (£100bn) and defence (£49bn) combined. The emergency will soon be upon us.

The problem is also that the government is entirely missing in action. Boris Johnson is on holiday, and his possible successors are fighting it out over unfunded tax cuts. Our energy bills crisis is not that complicated; our politicians are just refusing to do anything about it.