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

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

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 It is now over 6 months old so the content may be out of date.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.

Compare gas & electrcity suppliers

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Common energy mistakes that cost you £££

The heating system is probably working overtime at present, but what if you could cut your bills without battling hypothermia? The key is being energy efficient, yet households could be wasting hundreds of pounds by making costly energy mistakes.

4.8m people switched energy supplier last year

We’re often told of the amount we could save by switching energy supplier, and happily, the message seems to be getting through, with the number of consumers switching providers having reached record levels last year.

EDF cuts gas prices, but hikes electricity

EDF Energy has announced that it’s cutting gas prices for customers on its standard variable rate tariffs, but unfortunately, electricity customers could lose out, as they’ll see a rate increase from March next year.
 
Close