Ecology backs call for Government action on electricity pricing to speed switch away from fossil fuels

A heat pump with pink flowers to the side

Published: 3 July 2026

Ecology is supporting Ethical Consumer in its call for Government action on electricity prices.

The magazine is urging the Government to fix flawed electricity pricing if it wants to encourage more homeowners to switch from gas or oil boilers to heat pumps.

Ethical Consumer – whose annual Climate Gap Report has been sponsored by Ecology since 2022 – was responding to the latest findings from the Climate Change Committee (CCC).

The influential committee, which independently advises the Government on emissions targets and climate change progress, published its lengthy 2026 Report to Parliament on 24 June.

Among its findings was a significant slowdown in the number of retrofit heat pump installations, and a look at potential barriers to explain why.

The rapid take up of heat pumps by UK households is a key target in the national journey to net zero. However, the high cost of electricity, which is pegged to wholesale gas prices, is stopping more people from switching to heat pumps.

The CCC’s number one recommendation for the Government this year is to “make electricity cheaper through measures such as removing remaining policy costs from electricity bills”.

CCC data showed a direct link between electricity pricing and heat pump take up in other European countries. The UK has among the highest electricity-to-gas price ratios and the lowest heat pump market share in Europe.

Ecology CEO Gareth Griffiths said: “The Government needs to end the dysfunctional link to wholesale gas prices which keeps the cost of electricity artificially high.

“If we’re serious about cutting our reliance on fossil fuels, reforming this pricing mechanism and bringing down electricity prices will encourage more homeowners to switch to heat pumps.

“The extreme weather so far this year is surely a reminder that we need to keep moving towards net zero or face adapting to a very different future.”

The high UK cost of electricity means heat pump installers often recommend complex home insulation projects before the switch to electric heating can go ahead.

Challenged on subsidies for insulation by Ethical Consumer, CCC Chair Nigel Topping said sometimes “complex insulation projects can be the hardest thing in the consumer journey”.

Removing the economic driver for households to complete insulation work first would make heat pumps a more attractive choice, although the CCC continues to recommend insulation subsidies for low-income households.

Ethical Consumer Editor Rob Harrison said: “It’s good to see a clear message from the CCC. It does align with what we’ve heard from the Heat Pump Federation too.

“Whilst widespread home insulation improvements can reduce the need to build such a large new electricity grid, it’s clear that making this a problem for individual households here in the UK is not delivering change at the scale we need to address climate change.”

Ethical Consumer uses the CCC’s data extensively to help track 12 of the UK’s main consumer climate impacts in its own annual Climate Gap Report, which is sponsored by Ecology Building Society.

One of these 12 key impacts is heat pump installations. Through the Climate Gap Report, Ethical Consumer tracks progress across four key areas for reducing consumer climate impacts: food, home heating, travel, and consumer goods.

Gareth added: “We work with Ethical Consumer and support its annual Climate Gap Report as we believe this project empowers consumers to make informed decisions on better choices for themselves and the planet.”

The 2026 Climate Gap Report will be published in October.