Electricity bills to rise every year until 2015 - Gas and electricity - News - Moneyfacts

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Electricity bills to rise every year until 2015

Electricity bills to rise every year until 2015

Category: Gas and electricity

Updated: 17/12/2009
First Published: 07/12/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Consumers can expect to see a slight increase in their monthly electrcity bills for the next five years, as a result of network upgrades.

The UK's energy regulator, Ofgem, has said that investment worth £7.2 billion will be spent in the next five years, meaning households will gain from improved customer service, better reliability and a greener supply of energy.

Consumers can expect to see hikes of up to £4.30 a year between 2010 and 2015.

This is to be achieved through large scale trials of smart grids and other technologies required in a low carbon economy, which will cost some £500 million. Ofgem has said that as a result of the improvements, companies will be set tough new targets for reliability and customer service.

Chief executive of the regulator, Alistair Buchanan, commented: "Our proposals are tough on inefficiency and poor service but are fair in allowing companies to invest to replace ageing network assets and in improving the environment.

"The controls provide great opportunities for companies which are more efficient and excel at providing what their customers want – but they will penalise poor performers."

In better news for consumers, Ofgem has warned energy providers that it must pass on cuts in wholesale gas prices to their customers.

The cuts will be expected to be passed on in the New Year if the reductions continue, while the regulator has also advised consumers that new players to the market mean potential savings of £200 a year by switching suppliers.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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