Ed Miliband's Net Zero agenda failed to stop electricity costs soaring five-fold during heatwaves, analysis shows, with potentially bigger price jumps on the way

Published: 19:07, 7 July 2026 | Updated: 19:17, 7 July 2026 Ed Miliband's Net Zero policies have failed to stop electricity costs soaring during heatwaves amid growing reliance on foreign energy imports. As Britain faces another week of sweltering temperatures, analysis found electricity prices surged more than five-fold during last month’s heatwave. This was because renewable sources were unable to produce enough energy to meet demand as households and offices turned on air conditioning units and fans to keep cool. Instead, Britain had to rely on costly electricity imports from Europe as swathes of the UK’s gas power fleet were also unavailable. Critics said it was yet more proof that Labour’s ban on new drilling in the North Sea was ‘madness’ as it means the UK will become more reliant on costly foreign energy imports. The findings will renew pressure on Andy Burnham, who is said to be considering appointing Mr Miliband as his Chancellor. Last week, senior officials in Donald Trump’s administration said promoting the Energy Secretary would be a mistake. Ed Miliband could be promoted to Chancellor within weeks, as Andy Burnham - expected to soon be the next PM - is considering promoting him to the role  Renewable sources, such as wind turbines, were unable to produce enough energy to meet demand on June 26 as households and offices turned on air conditioning units and fans  Renewable sources, such as solar panels, were unable to produce enough energy to meet demand on June 26 as households and offices turned on air conditioning units and fans  The US President has repeatedly said failure to ban new drilling licences in the North Sea, as part of its Net Zero policies, was a ‘very big mistake’ of Sir Keir Starmer’s premiership. Tory shadow energy minister Greg Smith said: ‘The tunnel vision dogma of Ed Miliband is leaving the UK dangerously exposed to high power prices, at a time we desperately need cheap electricity to power cooling systems to enable work, school and transport to carry on as normal. ‘Labour need to pull the plug on the madness, get drilling in the North Sea and adapt to reality, not pretending they can make reality fit their narrative.’ The analysis found that on 26 June, the hottest day of the year, Britain had to rely heavily on electricity imports from Europe as households and offices turned on fans and air conditioning systems. The result was a sharp spike in electricity prices. The average wholesale electricity price had been £83/MWh, but on 26 June they surged to £468/MWh - more than five times higher. These costs can be passed on to consumers in the form of higher bills. The study found that the highest prices coincided with rising imports through interconnectors and falling solar and wind production. At one point that day, imports provided 22 per cent of Britain’s electricity. Later, between 11pm and 11.30pm, gas was providing up to 49 per cent of power, while solar was at zero as it got dark. Across the heatwave from 22 to 27 June, gas supplied 35 per cent of generation, compared with 21 per cent from wind and 13 per cent from solar. At its peak, gas, which can be burned by power stations to produce energy, provided 58 per cent of Britain’s electricity. Mr Smith said it showed that, when reliable domestic back-up is short, Britain can be forced to pay much higher prices on imports from the Continent and that storage during the summer months will become increasingly important to power air conditioning and fans as Britain’s climate heats up. Worryingly, the analysis also found that if available gas capacity had been 1GW lower on 26 June, energy prices could have risen above £750/MWh. If it had fallen by 5GW, prices could have reached £1,636/MWh - around 20 times the average price. During the 2024 general election campaign, the Labour Party pledged to cut annual household energy bills by £300 by the year 2030, driven by their Clean Power Plan. It also brought in a ban on granting new oil and gas drilling licenses in the North Sea shortly after winning the election. An Energy department spokesman said: 'The main driver of high energy costs are global gas prices, which have also pushed up electricity prices. More oil and gas production will not take a penny off bills.  We need to go further and faster for clean, homegrown power we control.'