The approval by OFGEM of an investment of 24 billion pounds sterling in the expansion of the energy network, and the increase in invoices of £ 102 which will pay it, is a recognition that the cleaner prices, more predictable and, hopefully, it will only be a price today.
THE Green light investments Today, including 10 billion pounds sterling will be spent by the three electricity network operators in England energy transition.
They will pay for new high-voltage cables, on pylons, underground and submarines, as well as new substations and circuits necessary to connect new renewable sources, mainly offshore wind, to people who need them.
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It is a massive and ambitious project that will ultimately cost 80 billion pounds sterling in order to deliver a clean electricity network.
The objective is to reduce both emissions and dependence on the United Kingdom with regard to wholesale gas markets, which underlie the supply of electricity today, and fix the price on the market, even when the renewals provide the majority of the offer.
This volatility has seen inner invoices exceed £ 4,000 in the wake of the invasion of Ukraine by Russia, which prompted Liz Truss to authorize a state subsidy of 40 billion pounds to cap the invoices at £ 2,500 for each household in the country.
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Invoices must increase to pay the energy transition
An expansion of renewable energies and storage capacities alongside the new nuclear nuclear should at some point in the future low of the balance sheet so that the gas is no longer king on the British market.
To achieve this, we will all have to pay in advance, in the form of grants and price guarantees to encourage the construction of renewable energies, and the increase in “network costs” announced by OFGEM today.
Over time, these investments should save tangible savings. These will include the end of “constraint payments” paid to power plants and wind farms to go out during an excess supply period because the network cannot manage the load. They cost customers more than 1 billion pounds sterling last year and should more than double before new infrastructure reduces them.
Ofgem says that this will save around £ 80 per household, reducing the net expansion of costs to only £ 24 per house per year.
Private companies offering investment – National GRID in England and SSE and Scottish Power in Scotland – will receive a return on their investments of 6% on equity, on average 5.57% on debt and be authorized to take dividends of 3%.
A fairly said return of Ofgem. Consumers will want services and prices to correspond if they want to agree.