UK energy bills to rise by £108 to pay for infrastructure upgrades

Households in England will be hit by a £108 increase in energy bills for infrastructure improvements.

Britain’s energy watchdog has given the green light for an initial £28bn investment to improve the UK’s energy infrastructure.

However, Ofgem has announced that the move will increase network charges on household bills, leaving customers paying an additional £108 on top of their annual spend.

In its final decision on price controls for energy network firms over the next five years, the watchdog increased the capex allowed from the initial £24bn temporarily allowed in the summer.

It said the higher level of investment would see £17.8bn spent on gas transmission and distribution networks in the five years to 2031, with a further £10.3bn being used to strengthen the UK’s high-voltage electricity network.

But Ofgem said the decision to increase allowable investment spending would increase household bills more than initially expected.

Households will see network charges on bills, which account for around a fifth of average annual energy costs, rise by £108 by 2031 to cover the cost of the extra investment, following a £104 increase in the draft decision in July. The regulator said this would include £48 for gas networks and £60 for the electricity grid.

More to follow…