Richard Hall, energy expert at Consumer Focus said:
‘Funding network improvements is just one of a cocktail of costs energy customers are being asked to foot the bill for.1 While moves to make our energy supply more secure and efficient are essential, the costs involved are huge. Ofgem needs to be vigilant so that customers are not asked to write a blank cheque to fund them.
‘Energy suppliers and generators will get huge benefits from infrastructure changes and must share in the costs. Firms need to be clearly accountable for how funding is spent and transparent about how much consumers’ are being asked to pay. Measures are also needed to protect households at risk of fuel poverty from the disproportionate effects that price rises will have on the poorest consumers.’
- Ofgem estimates over £200 billion needs to be spent in the next 10 years to secure supplies for consumers and to move to a low carbon economy. Of this, around £32 billion will need to be spent on pipes and wires. The infrastructure changes the £32bn will fund will last for decades and the cost to consumers should be split over this lifespan and not paid for upfront.