Energy Bills: Network costs had to increase as the price ceiling swallows | Money news Aitrend

A major element in household energy bills should increase sharply compared to next year to help pay efforts to maintain energy security during transition to green power.

The industry regulator ofgem is to determine the amount of the network load energy Suppliers from April 1, 2026 to March 31, 2031 would increase network costs in household invoices of £ 24 per year.

These costs currently represent 22% of the total invoice.

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The results, which will be submitted to a consultation before a final determination by the end of the year, reflect the requests of network operators so that electricity and gas networks are adapted to the future in the middle of the expansion of renewable and nuclear energy to respond to zero net ambitions.

Ofgem says that the plans he has given to the provisional approval of the amount of an investment program of 24 billion pounds sterling during the duration of five years – an increase of current levels.

In total, 80 major projects include improvements to more than 2,700 miles of airlines.

If the rubber is buffered as expected, the resulting network cost increases threaten higher pressure on invoices from next month – a month which has now become synonymous with increasing essential invoices.

The watchdog revealed its plans as 22 million British households on the energy price ceiling benefit from the first decrease of one year.

It is down an annual average of £ 1,849 between April and June to £ 1,720 from July to September.

It is in the spirit of the softening of large costs observed in the spring – before the temporary overvoltage of large gas prices caused by the recent instability in the Middle East.

Energy Bills: Network costs had to increase as the price ceiling swallows | Money news

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A new forecast published by the specialist in the Industry Cornwall Insight suggested that households were on the right track to see an additional, but light decline, when the ceiling is adjusted in October.

At the current level, it is 28% lower than that of the cost of lifestyle led by energy – but 10% higher than the same period last year.

The price ceiling does not limit total invoices because households always pay the amount of energy they consume.

Ofgem continues to recommend consumers to go around fixed rate offers on the market because they can offer savings compared to the price ceiling and the shielding houses of any price shock seen in their fixed terms.

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Jonathan Brearley, director general of the regulator, said: “The dependence of Great Britain with regard to imported gas left us at the mercy of the international volatile gas prices which, during the energy crisis, would have increased invoices up to £ 4,000 for an average cleaning without government support.

“Even today, the price ceiling can go up or down hundreds of books with little that we can do it.

“This record investment will offer a local energy system which is better for Great Britain and better for customers. It will ensure that the system has greater resilience against the shock of volatile gas prices that we do not control.

“These 80 projects are a long-term insurance policy against threats to the energy security of Great Britain and price instability. By bringing dozens of online renewable production sites and modernizing our energy system to the one we need in the future, we can increase growth and give ourselves more control over prices.

“Doing nothing is not an option and will cost consumers more – it is a critical national infrastructure. The earliest we build the network we need, and invest in strengthening our resilience, the lower the cost of invokers will be lower than the future. ”

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