OVO Unveils First Transition Plan, Urges Government to Cut Electricity Costs Nationwide

OVO, the Bristol-based energy supplier, has just released its first-ever climate transition plan. The message is clear: without serious changes in government policy, especially around how we heat our homes, the company says it won’t be able to hit its 2035 net-zero target.

The plan, titled Mind the Green Gap, lays out how OVO plans to reach net zero across its operations, supply chain, and the energy and services it provides to customers. But it’s not just about slashing emissions. OVO wants to do this in a way that supports the wider low-carbon transition, protects nature, and ensures that no one is left behind. In other words, this is about more than just numbers—it’s about people, fairness, and the planet.

OVO says it’ll refresh the plan every three years while sharing annual progress updates as part of its regular reporting. The format follows the Transition Plan Taskforce’s Gold Standard, adding weight to the commitments.

More than 99 per cent of OVO’s emissions come from indirect sources. And the biggest chunk of that? It’s gas sold to customers, about two-thirds of the company’s total footprint. The rest comes mostly from electricity.

Since 2018, OVO has managed to cut emissions from gas by 36 per cent. That might sound impressive, but the company admits it’s not a long-term fix. The drop wasn’t because of new technology or greener behaviour. It happened because people simply used less gas during the recent energy price crisis and the broader cost-of-living crunch. In other words, it was driven by economic pain, not progress.

So, what’s the plan? OVO says the real solution lies in helping people shift from gas to electricity for things like cooking and heating. But that won’t happen at scale without stronger government support.

One big hurdle is the cost of installing heat pumps. OVO points to the government’s Boiler Upgrade Scheme, which offers up to £7,500 in grants. That sounds generous, but in reality, many homes still need to spend hundreds or even thousands more to complete the switch. There are planning rules to consider, system upgrades, and of course, electricity prices, which are currently about four times higher than gas.

As a result, heat pump adoption has been slow. OVO wants the government to act decisively. Specifically, they’re calling for:

• A rebalancing of policy costs so electricity isn’t so much more expensive than gas

• New grants aimed at low-income households

• Public-private financing options for electric heating

• A clear deadline for ending the sale of new gas boilers

• A reformed ECO scheme that rewards installers for fitting low-carbon heating systems

Beyond Money: Skills, Perceptions, and Time

It’s not just about cost, though. OVO also wants stronger collaboration across the energy sector to build up the UK’s heat pump workforce. That includes training more installers, changing how people perceive new technologies, and making installations faster and less disruptive.

Later this year, the UK Government is expected to unveil its Warm Homes Plan. Backed by £13.2 billion, this initiative could be a turning point—but only if it addresses the real barriers households face.

Meanwhile, the Climate Change Committee issued its warning this week. At the current pace, the UK is on track to miss more than a third of its legally binding emissions targets for 2030. High electricity costs are a big reason why. They make it harder for people and businesses to move away from gas-powered heating and vehicles.

That said, there is a path forward. The Committee’s “balanced pathway” to net zero doesn’t require ripping out boilers prematurely. It simply calls for smarter investment, around 0.2 per cent of GDP each year. That’s a manageable number if the policies and public support fall into place.