Energy regulator Ofgem has launched a “call for input” about how we could pay for the energy infrastructure of the future.
It says the energy system in the UK is undergoing transformation as it shifts away from fossil fuels to renewable sources, while new technology is changing how and when we consume energy. It says its review will look at ways in which the associated costs can be recovered from consumers. It adds that any new mechanism should ideally be efficient and fair while supporting economic development and decarbonisation goals.
Back in April, Jonathan Brearley, the chief executive of Ofgem, said:
“Over the next few years, we do expect variable costs to come down, but the proportion of costs that are fixed will rise, which, if unchecked, could exacerbate inequalities that we see today. We want to at least ask the question—whether or not we can allocate costs more progressively.”
Standing charges are currently uniformly applied across households regardless of consumption patterns or ability to pay. Ofgem indicates that fixed charges could instead be set based on a proxy for wealth, similar to how Council Tax is calculated. The degree of peak-time consumption could also be a factor.
While the energy system is certainly changing, you can still maximise your household efficiency through various improvements. Contact Xgas to see if you can save energy by replacing an old inefficient boiler with a modern boiler installation in Chester, Wrexham or Oswestry. You may even be able to spread the cost through financing.