Energy bills to fall by £12 a year – maybe

30 July 2014

ofgem-logo Rejoice, rejoice! It looks like we’re set to save…er…£12 a year on our energy bills thanks to new Ofgem rules to cap spending on British power networks. We’re rich! Rich beyond our wildest dreams!

Ofcom has approved a £17bn upgrade for the UK’s electricity networks over the next eight years – but customers will save because the budget is lower than the energy companies have previously been allowed to spend.

£111 of our annual fuel bill is currently set aside to pay for network upgrading and maintenance. Ofgem say this will drop to £99 under the new cap.

But not everybody will save the same amount. It depends on what company runs the power network in your area. In the North West you could be getting a saving of £26, while customers in the South East might only get a piddling £5.

And also there’s no actual guarantee we’ll see this mythical £12 saving at all, as apparently private companies are quibbling with Ofgem about other aspects of the bill.

But, you know, we’ll take what we can get. Now all we have to do is find something to spend this imaginary £5-26 (or maybe £12 on). But don’t go mad at the shops, because you might not get it at all.

Ain’t life grand?

TOPICS:   Utilities   Consumer Advice   Banking

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