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

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Britain’s energy watchdog gives go-ahead to initial £28bn of investment to upgrade UK energy infrastructure but reveals move will push up network charges

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UK households are to be hit by a £108 surge in energy bills to pay for infrastructure upgrades.

Britain’s energy watchdog has given the go-ahead to an initial £28 billion of investment to upgrade UK energy infrastructure.

However, Ofgem revealed the move will push up network charges on household bills, so that customers will be paying an additional £108 on top of their annual spend.

In its final verdict on price controls for energy network firms over the next five years, the watchdog increased the allowed investment spend from the initial £24 billion that was provisionally given the go-ahead in the summer.

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

But Ofgem said its decision to increase the allowed investment spend will push up household bills by more than first expected.

Households will see the network charges on bills – which make up around a fifth of average annual energy costs – surge by £108 by 2031 to cover the cost of the extra investment, up from a £104 rise in its draft verdict in July.The regulator said this will include £48 for gas networks and £60 for the electricity grid.

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