Released on: January 22, 2010, 1:52 am
Author: uSwitch.com
Industry: Energy

Ofgem yesterday published final proposals for funding the first tranche of projects from a potential GBP1 billion package of extra investment in Britain’s high-voltage networks. The first tranche, totalling GBP319 million, will help connect Great Britain’s growing renewable electricity generation. However, this is just part of a much broader GBP233.5 billion investment programme that is expected to add GBP548 a year in total ontohousehold energy bills, warns uSwitch.com, the independent price comparison and switching service. And while the investment is needed, consumers must start preparing for the eventual impact on their energy bills.

Will Marples, energy expert at uSwitch.com, comments: “This announcement is one of many that consumers can expect to hear about huge investments being made to secure our longer-term energy supplies. The investment is crucial, but there can be no doubt that it will have an impact on our future energy bills and this has to be explained to consumers now so that they can start taking action to protect themselves in the future.

“The average household energy bill today is GBP1,239 a year and the additional cost of investment alone is expected to add GBP548 a year onto our bills. Ongoing pricing trends coupled with this investment could see household energy bills hit as high as GBP4,733 a year by 2020, nearly four times higher than they are today.

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