Energy bills could be cut in half as Australia reduces net emissions to zero over the next 25 years, according to modelling released today by the Grattan Institute, even if tougher action is taken to cut pollution from coal-fired power plants.

The independent think tank’s report Bills down, emissions down calculated that the $5800 the average household spends each year on gas, electricity and petrol could be cut to less than $2900 in today’s money by 2050, driven by the fall in petrol costs as people switch to electric vehicles, as well as the growing uptake of solar panels and batteries and the ongoing shift from gas stoves and water heaters to electric.

The report also challenges a key argument from anti-renewable energy campaigners that overhauling the electricity grid and moving to

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