Households and businesses will have to wait for energy bills to fall significantly because there is “no shortcut” to bringing down prices, the energy minister has told Sky News.

Speaking as Chancellor Rachel Reeves considers ways of easing the pressure on households in next week’s budget, energy minister Michael Shanks conceded that Labour’s election pledge to cut bills by £300 by converting the UK to clean power has not been delivered.

The UK has the second-highest domestic and the highest industrial electricity prices among developed nations, despite renewable sources providing more than 50% of UK electricity last year.

“The truth is, we do have to build that infrastructure in order to remove the volatility of fossil fuels from people’s bills,” Mr Shanks said.

“We obviously hope that that will happen as quickly as possible, but there’s no shortcut to this, and there’s not an easy solution to building the clean power system that brings down bills.”

His comments come amid growing scepticism about the compatibility of cutting bills as well as carbon emissions, and growing evidence that the government’s pursuit of a clean power grid by 2030 is contributing to higher bills.

While wholesale gas prices have fallen from their peak following the Russian invasion of Ukraine in 2022, energy bills remain around 35% higher than before the war, inflated by the rising cost of reducing reliance on fossil fuels.

The price of subsidising offshore wind and building and managing the grid has increased sharply, driven by supply chain inflation and the rising cost of financing major capital projects.

In response, the government has had to increase the maximum price it will pay for offshore wind by more than 10% in the latest renewables auction, and extend price guarantees from 15 years to 20.

The auction concludes early next year, but it’s possible it could see the price of new wind power set higher than the current average wholesale cost of electricity, primarily set by gas.

Renewable subsidies and network costs make up more than a third of bills and are set to grow. The cost of new nuclear power generation will be added to bills from January.

The government has also increased so-called social costs funded through bills, including the warm home discount, a £150 payment made to around six million of the least-affluent households.

Gas remains central to the UK’s power network, with around 50 active gas-fired power stations underpinning an increasingly renewable grid, and is also crucial to pricing.

Because of the way the energy market works, wholesale gas sets the price for all sources of electricity, the majority of the time.

At Connah’s Quay, a gas-fired power station run by the German state-owned energy company Uniper on the Dee estuary in north Wales, four giant turbines, each capable of powering 300,000 homes, are fired up on demand when the grid needs them.

Energy boss: Remove policy costs from bills

Because renewables are intermittent, the UK will need to maintain and pay for a full gas network, even when renewables make up the majority of generation, and we use it a fraction of the time.

“The fundamental problem is we cannot store electricity in very large volumes, and so we have to have these plants ready to generate when customers need it,” says Michael Lewis, chief executive of Uniper.

“You’re paying for hundreds of hours when they are not used, but they’re still there and they’re ready to go at a moment’s notice.”

He agrees that shifting away from gas will ultimately reduce costs, but there are measures the government can take in the short term.

“We have quite a lot of policy costs on our energy bills in the UK, for instance, renewables incentives, a warm home discount and other taxes. If we remove those from energy bills and put them into general taxation, that will have a big dampening effect on energy prices, but fundamentally it is about gas.”

The chancellor is understood to be considering a range of options to cut bills in the short term, including shifting some policy costs and green levies from bills into general taxation, as well as cutting VAT.

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Tories and Reform against green energy

Stubbornly high energy bills have already fractured the political consensus on net zero among the major parties.

Under Kemi Badenoch, the Conservatives have reversed a policy introduced by Theresa May. Shadow energy secretary Claire Coutinho, who held the post in the last Conservative government, explained why: “Net zero is now forcing people to make decisions which are making people poorer. And that’s not what people signed up to.

“So when it comes to energy bills, we know that they’re going up over the next five years to pay for green levies.

“We are losing jobs to other countries, industry is going, and that not only is a bad thing for our country, but it also is a bad thing for climate change.”

Reform UK, meanwhile, have made opposition to net zero a central theme.

“No more renewables,” says Reform’s deputy leader Richard Tice. “They’ve been a catastrophe… that’s the reason why we’ve got the highest electricity prices in the developed world because of the scandal and the lies told about renewables.

“They haven’t made our energy cheaper, they haven’t brought down the bills.”

Mr Shanks says his opponents are wrong and insists renewables remain the only long-term choice: “The cost of subsidy is increasing because of the global cost of building things, but it’s still significantly cheaper than it would be to build gas.

“And look, there’s a bigger argument here, that we’re all still paying the price of the volatility of fossil fuels. And in the past 50 years, more than half of the economic shocks this country’s faced have been the direct result of fossil fuel crises across the world.”

“Terrible”, “weird”, “peculiar” and “baffling” – some of the adjectives being levelled by observers at the Donald Trump administration’s peace plan for Ukraine.

The 28-point proposal was cooked up between Trump negotiator Steve Witkoff and Kremlin official Kirill Dmitriev without European and Ukrainian involvement.

It effectively dresses up Russian demands as a peace proposal. Demands first made by Russia at the high watermark of its invasion in 2022, before defeats forced it to retreat from much of Ukraine.

Ukraine war latest: Kyiv receives US peace plan

Its proposals are non-starters for Ukrainians.

It would hand over the rest of Donbas, territory they have spent almost four years and lost tens of thousands of men defending.

Analysts estimate at the current rate of advance, it would take Russia four more years to take the land it is proposing simply to give them instead.

It proposes more than halving the size of the Ukrainian military and depriving them of some of their most effective long-range weapons.

And it would bar any foreign forces acting as peacekeepers in Ukraine after any peace deal is done.

The plan comes at an excruciating time for the Ukrainians.

They are being pounded with devastating drone attacks, killing dozens in the last few nights alone.

They are on the verge of losing a key stronghold city, Pokrovsk.

And Volodymyr Zelenskyy is embroiled in the gravest political crisis since the war began, with key officials facing damaging corruption allegations.

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The suspicion is Mr Witkoff and Mr Dmitriev conspired together to choose this moment to put even more pressure on the Ukrainian president.

Perversely, though, it may help him.

There has been universal condemnation and outrage in Kyiv at the Witkoff-Dmitriev plan. Rivals have little choice but to rally around the wartime Ukrainian leader as he faces such unreasonable demands.

The genesis of this plan is unclear.

Was it born from Donald Trump’s overinflated belief in his peacemaking abilities? His overrated Gaza ceasefire plan attracted lavish praise from world leaders, but now seems mired in deepening difficulty.

The fear is Mr Trump’s team are finding ways to allow him to walk away from this conflict altogether, blaming Ukrainian intransigence for the failure of his diplomacy.

Mr Trump has already ended financial support for Ukraine, acting as an arms dealer instead, selling weapons to Europe to pass on to the invaded democracy.

If he were to take away military intelligence support too, Ukraine would be blind to the kind of attacks that in recent days have killed scores of civilians.

Europe and Ukraine cannot reject the plan entirely and risk alienating Mr Trump.

They will play for time and hope against all the evidence he can still be persuaded to desert the Kremlin and put pressure on Vladimir Putin to end the war, rather than force Ukraine to surrender instead.

This is the first time the G20 summit is being hosted on African soil.

Heads of state from 15 countries across Europe, Asia and South America are expected to convene in South Africa’s economic capital, Johannesburg, under the banner of “solidarity, equality and sustainability.”

The summit is facing challenges from the Oval Office as US President Donald Trump boycotts the event, where the G20 leadership is meant to be handed over to him by South African President Cyril Ramaphosa.

The US has also warned South Africa against issuing a joint declaration at the end of the summit. The challenges to South Africa’s G20 debut are also domestic.

Nationwide civic disobedience has been planned by women’s rights charities, nationalist groups and trade unions – all using this moment to draw the government’s attention to critical issues it has failed to address around femicide, immigration and high unemployment.

But a key symbolic threat to the credibility of an African G20 summit themed around inclusivity is the continued exclusion and marginalisation of its oldest communities.

“There is a disingenuous thread that runs right through many of these gatherings, and the G20 is no different”, Khoisan Chief Zenzile tells us in front of the First Nations Heritage Centre in Cape Town, “from any of them”.

“I am very concerned that the many marginalised sections of society – youth, indigenous people, are not inside the front and centre of this agenda,” he added.

As we speak, the sounds of construction echo around us. We are standing in a curated indigenous garden as South Africa’s Amazon headquarters is being built nearby.

After years of being sidelined by the government in a deal that centres around construction on sacred Khoisan land, Chief Zenzile said he negotiated directly with the developers to build the heritage centre and sanctuary as a trade-off while retaining permanent ownership of the land.

“There are many people who like to fetishise indigenous people who want to relegate us to an anthropoid state, as if that is the only place we can, as if we don’t have the tools to navigate the modern world,” he says when I ask about modern buildings towering over the sacred land.

“That is the most ridiculous notion – that the entire world must progress and we must be relegated to a state over which we have no agency.”

An hour and a half from Cape Town’s centre, Khoi-San communities have seized 2,000 hectares of land that they say historically belongs to them.

Knoflokskraal is a state where they exercise full agency – filling in the infrastructural gaps around water and electricity supply that the provincial government will not offer to residents it categorises as “squatters”.

“We are – exactly today – here for five years now,” Dawid De Wee, president of the Khoi Aboriginal Party, tells us as he gives us a tour of the settlement. “There are more or less around 4,000 of us.

“The calling from our ancestral graves sent us down here, so we had an urge to get our own identity and get back to our roots, and that was the driving motive behind everything we are here now to take back our ancestral grounds.”

Dawid says they have plans to expand to reclaim more swathes of land stolen from them by European settlers in the 1600s across the Cape Colony.

Land reform is a contentious issue in post-Apartheid South Africa, with a white minority still owning a majority of the land.

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Indigenous land is even further down the agenda of reparations, and South Africa’s oldest communities continue to suffer from historic dispossession and marginalisation.

For many Khoi-San leaders, G20 represents the ongoing exclusion from a modern South African state.

They have not been invited to officially participate in events where “solidarity, equality and sustainability,” are being discussed without reference to their age-old knowledge.

Instead, we meet Khoi-San Queen Eloise at a gathering of tribal leaders from around the world on the most southwestern tip of Africa in Cape Point called the World Tribal Alliance.

“In order for us to heal, Mother Nature and Mother Earth is calling us, calling our kinship, to come together – especially as indigenous people because with indigenous people we are still connected to our lands, to our intellectual property we are connected to who we are,” Queen Eloise tells us.

“G20 is a politically-based gathering – they are coming together to determine the future of people politically.

“The difference is that we will seek what Mother Earth wants from us and not what we want to do with technology or all those things politically, but the depth of where we are supposed to go.”