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Power grid upgrades raise North East bills

Upgrades to the regional electricity network will add an average of £3.76 a year to bills over the next five years, the industry regulator said this week.

About £6.5bn will be invested between 2010 and 2015, but Ofgem has told companies responsible for the network that they must deliver their plans for 17% less than they originally forecast.

The regulator said its proposals aimed to protect customers from “unnecessary price rises in today’s difficult economic environment.”

There are 14 electricity distribution networks in the UK, with Ofgem’s price controls responsible for the revenues their owners can collect.

Electricity customers pay about £3.6bn a year for the distribution of electricity from the national grid to homes and businesses.

This accounts for about a sixth of domestic customer electricity bills, with a household paying typically about £67 a year for electricity distribution.

Ofgem said the proposed average annual increase in the distribution element was likely to be about 5.3% - £3.76 a year for the next five years, although this will vary across the country.

This was posted in Bdaily's Members' News section by Ruth Mitchell .