Energy regulator Ofgem has announced that it has provisionally approved £24 billion in network improvements, with the cost ultimately falling on bill payers.
Networking costs currently make up around 22% of an energy bill. This is used to maintain the wires, pipes and other infrastructure that supplies electricity and gas to homes. Under Ofgem’s draft proposal, network operators will be able to charge energy suppliers more between April next year and March 31, 2031. This will equate to an extra £24 a year on the average energy bill.
While the announcement comes as energy costs are still much higher than just a few years ago, Ofgem argues that the programme of upgrades is essential. The chief executive of the regulator, Jonathan Brearley, said the investment would maximise the use of homegrown energy and protect the system against shocks from increases in gas prices. He said the various projects provided:
“…a long-term insurance policy against threats to Britain’s energy security and the instability of prices. By bringing online dozens of homegrown, renewable generation sites and modernising our energy system to the one we will need in the future we can boost growth and give ourselves more control over prices too.”
One way to improve your own resilience against rising energy bills is to improve your home’s energy efficiency. Xgas offers care plans that include an annual boiler service in Chester and nearby locations to help ensure efficiency, safety and reliability. Get in touch to also learn about replacing an old inefficient boiler.