New research by Oxford Economics believes renewables can reduce the negative impact of hikes in fossil fuel prices by up to half.

Domestic energy bills have soared by 140% over the last eight years according to uSwitch, largely due to the rising price of gas, but the research believes that increasing the UK's use of renewables could help insulate the economy from the effects of spikes in fossil fuel prices.

Sudden increases in fossil fuel prices can be caused by instability in energy-producing countries, such as during the Libyan revolution, or very high increases in global demand, as was the case prior to 2008.

The research has been welcomed by RenewableUK, The company's director of external affairs, Jennifer Webber, said: “We’ve seen energy bills soar over the last eight years – increasing five times faster than household income. This increase has been driven by the rising cost of fossil fuel. It’s clear that we need to find a way of cutting our dependence on gas, oil and coal – not just to combat climate change, but to limit these unpredictable rises.

“This report demonstrates that renewables can play that role, eventually helping to cut the impact of future price hikes by up to half by 2050.

"The government’s Energy Bill must ensure that the expansion of renewable energy is at the heart of our energy strategy. We already know that, by 2020, renewables can deliver tens of thousands of jobs and billions of pounds of investment – this report reaffirms they’re the best option for cash-strapped households too.”

The full report, entitled ‘Fossil Fuel Price Shocks and a Low Carbon Economy’, is available to download  here.