British Gas CEO Warns Labour’s Net Zero Plan Could Spike Energy Costs

The chief executive of British Gas, Chris O’Shea, has raised concerns that the Labour Party’s commitment to achieving Net Zero carbon emissions may lead to unaffordable energy prices for consumers. Speaking on November 13, 2025, O’Shea warned that if the government does not balance its green energy ambitions with affordability, it risks rendering energy bills unmanageable for households.

O’Shea, who leads Centrica, the parent company of British Gas, emphasized the necessity of maintaining a sustainable energy system that is also economically viable. He stated, “If we’ve got a 100 percent clean energy system and nobody can afford it, that will be a complete and utter failure.” His comments reflect the ongoing debate surrounding the UK’s energy policies, particularly in light of recent spikes in energy prices following the implementation of new policies by Energy Secretary Ed Miliband.

The energy regulator, Ofgem, has indicated that these new policies contributed significantly to a recent increase in the energy price cap, which rose by approximately £35 to £1,755 per year. This adjustment marks an increase of £187 in the energy price cap since Labour took office. O’Shea noted that while he supports the push for more renewable energy sources, such as wind and solar, the overall cost of energy must remain within reach for consumers.

In light of Labour’s recent manifesto pledge to halt new oil and gas exploration in the North Sea, O’Shea called for a national discussion about the importance of homegrown energy. He expressed optimism that the shift towards renewable sources might prevent the price volatility experienced after Russia’s invasion of Ukraine in 2022, which had a profound impact on global energy markets.

O’Shea’s remarks underscore a critical tension in the UK’s energy policy, where the pursuit of environmental sustainability must coexist with the reality of rising living costs. As the government advances its Net Zero agenda, the challenge will be to ensure that energy remains both affordable and sustainable for all households across the UK.