Ofgem warns infrastructure upgrades will push energy bills up

by Matt Ridout on 19 July 2012  |  12 comments
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Ofgem wants to see the gas and electricity infrastructure improved. And its customers like you and me that will foot the bill.

Ofgem have announced that it believes that £22 billion must be allocated to projects to improve the UK’s gas and electricity networks. The impact of this investment on the consumer could be felt as early as next year, with energy bills expected to rise by £7 next year to cover the cost and to jump an additional £15 by 2021.

Although these numbers may perhaps seem small, added on top of highly fluctuating energy costs they can have a great impact on the average bill-payers expenditure. Ofgem suggests that the work is crucial, with new power lines, wind farms, and improving high and low pressure gas networks planned.

Any additional costs on top of energy bills will be a worry to households around the UK, as energy costs are currently a major part of each household’s monthly expenditure. To protect against any future impact we recommend comparing and switching energy suppliers regularly. With a number of new online and fixed tariffs available, now is the perfect time to compare your suppliers.

Current cheapest deals

* against typical bill of £1,345 per year as estimated by Ofgem (including adjustment of £23 for recent price drops). All costs are for a yearly average usage dual fuel household paying by monthly direct debit. Average usage defined by Ofgem as 16,500 kWh p.a. of gas and 3,300 kWh p.a. of electricity.

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