Household electricity bills could also fall four times further by 2035 under the alternative plan than under current policy.
The radical blueprint would abandon Labour’s Clean Power 2030 target and instead build Britain’s electricity system around a mixture of nuclear, renewables and gas.
It would also scrap carbon charges which make electricity produced from fossil fuels more expensive.
The report was put together by Think Tank Onward (stock image)
| GETTYGas power stations currently have to pay for the carbon dioxide they produce. Those costs feed into the cost of generating electricity and, ultimately, can affect the price paid for power.
The report, by Think Tank Onward, argues removing those charges, while retaining gas to provide reliable electricity when needed, would help dramatically cut the cost of the system.
Using 2027 as its starting point, the study calculates annual household electricity bills would be around £200 lower by 2035 under its cheaper-power plan, compared with just £50 lower under current policy.
By 2050, bills would be around £300 lower than in 2027 under the alternative, compared with £130 lower under the existing approach.
The report, The Case for Firm Power, delivers a direct challenge to Ed Miliband’s argument that the Government’s dash for renewable energy will ultimately deliver cheaper power.
Researchers say Britain could make the huge savings while still producing around 80 per cent of its electricity from clean sources.
Former Energy Secretary Claire Coutinho will use the findings to accuse Labour of trying to squeeze “every last drop of carbon” out of Britain’s electricity system regardless of the cost.