Sir Tony Blair has urged Ed Miliband to ditch his clean power by 2030 target because it “was right for its time but circumstances have changed”. The former Prime Minister’s think tank, the Tony Blair institute (TBI), called for the government to water down its plans in favour of slashing bills for households.

Tone Langengen, the paper’s author and the TBI’s energy policy advisor, said: “Launched in the middle of the gas crisis and in a low-interest environment, clean power 2030 was right for its time, but circumstances have changed – the UK now needs more than a decarbonisation plan, it needs a full-spectrum energy strategy built on growth, resilience and abundant clean electricity.

“These are not problems of the current government’s making but they are problems the country must now solve.”

The UK government is aiming for clean power to meet 95% of electricity demand by 2030, and Mr Miliband has pledged to lower average bills by £300 by that date.

But bills went up by 2% for millions of people in England, Wales and Scotland under energy regulator Ofgem’s latest price cap this month.

Angharad Hopkinson, Greenpeace UK’s political campaigner, said: “There’s no doubt that our dysfunctional electricity market is in need of urgent reform. But the TBI is unhelpfully stirring the pot with divisive ideas. It’s entirely possible to deliver both lower bills and the renewable energy infrastructure and grid upgrades that will help tackle climate change and bring even cheaper, more secure and stable power over time.

“First up, gas plants must be moved into a strategic reserve to prevent them from setting electricity prices and ripping off bill payers. Next, Crown Estate seabed leasing costs for offshore wind should be slashed. Cutting VAT on energy bills and moving levies from bills into general taxation is a no brainer. Together these measures and more would knock hundreds off bills and help keep the clean power plan on track.”

The TBI’s paper insisted the Government’s net zero by 2050 target should remain but did not offer an alternative for when clean power should be achieved.

It said: “While some have suggested walking back the country’s commitment to the Climate Change Act or to achieving net zero by 2050, that choice would amount to rolling back progress.”

A spokeswoman for the Department for Energy Security and Net Zero said: “This report rightly recognises that clean power is the right choice for this country. This Government’s clean power mission is exactly how we will deliver cheaper power and bring down bills for good.

“Our mission is relentlessly focused on delivering lower bills for the British people, to tackle the affordability crisis that has been driven by our dependence on fossil fuel markets.

“That’s why we have launched a golden age of new nuclear, consented a record amount of clean power, and welcomed the announcement of over £50bn private investment into the UK – as our mission delivers economic growth and good jobs across our country.”