The chief executive of British Gas has warned that Labour’s environmental plans risk making energy costs unaffordable, suggesting that the net zero transition could become what he described as a “complete and utter failure” without careful management.
Chris O’Shea, who leads Centrica, the parent company of British Gas, said environmental ambitions must be matched with affordability for households already struggling with rising bills.
Mr O’Shea said: “Because if we’ve got a 100 per cent clean energy system and nobody can afford it, that will be a complete and utter failure.”
He made the comments during a BBC Radio 4 interview as British Gas reported that 7.5 million of its customers were facing sustained pressure from higher energy costs.
The Centrica chief said he supported expanding wind and solar capacity while warning that the country must avoid constructing “an energy system that’s unaffordable”.
He raised particular concern about job prospects in Scotland’s offshore industry as activity in traditional extraction continues to decline.
Aberdeen’s port authority recently confirmed workforce reductions, citing a “staggering” downturn in North Sea petroleum operations.
Harbour Energy, Britain’s largest oil and gas producer, had also announced staffing cuts earlier this year.
Mr O’Shea said he was worried about the pace at which new green energy jobs might arrive to replace roles lost in the traditional sector.
“I grew up in the town of Fife, which was surrounded by coal mines. I saw the devastation when the coal mines were closed during the miners’ strike and people that had incredibly well-paid jobs – they went to no work at all.”
Centrica boss says Net Zero must remain affordable as millions of households face rising costs
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The executive warned ministers against repeating historic transitions that left entire communities without employment.
He said Britain must ensure new roles arrive quickly enough to prevent long periods of unemployment.
Mr O’Shea urged further discussion about the UK’s domestic energy production.
He argued that extracting gas from British waters could offer both economic and environmental advantages over overseas imports.
He said: “Whether you look at this from a cost point of view or whether you look at this from a carbon point of view or environmental point of view, the gas that you produce domestically will often be cheaper than the gas you import, and it will definitely be cleaner than the gas you import.”
The CEO said a completely green energy system that people can’t afford would be a complete failure
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PAHis comments come as Labour maintains its manifesto pledge to stop approving new licences for North Sea exploration.
Although British Gas no longer conducts offshore extraction itself, Mr O’Shea said domestically produced fuel remained more favourable than imported alternatives.
The Centrica chief said his early experiences shaped his view of industrial transition.
Growing up in Fife during the collapse of the mining industry left him with long-lasting impressions of the consequences for workers and families.
He said: “You’ve got second, third-generation people that are not in work now. And I desperately want to avoid that through this transition.”
Mr O’Shea described sending numerous job applications after university and receiving repeated rejections before securing work.
He said: “I know what it’s like to be a bit worried about getting a job,” adding that finding the right opportunity “can change your life – it certainly did for me.”
His intervention comes after significant increases in household energy costs since Labour entered Government.
Ofgem has attributed recent rises in the energy price cap partly to policy-related expenses introduced by energy secretary Ed Miliband.
October’s change lifted the typical annual bill by around £35 to £1,755.
This amounts to a total increase of £187 per year since the current Government took office.
The energy secretary has prioritised the Net Zero transition
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GETTYIndustry analysts had forecast smaller price movements before Ofgem pointed to Government policy as a contributing factor.
Mr O’Shea said increased renewable generation could help reduce the extreme volatility seen following Russia’s invasion of Ukraine in 2022.
He added that ensuring the transition remains affordable for households must remain central to the country’s environmental approach.
The chief executive said affordability, security and environmental progress must be balanced if Net Zero goals are to succeed in the long term.
