Energy bills to rise as we pay for infrastructure improvements

17 December 2012

Some gas, yesterday. Mmmm, gas.....

Good morning. We will all be paying for the upgrade of the electricity and gas networks over the next eight years. You’re okay with that, yes? Good.

BUT… it should only cost us each one solitary Earth pound per month for that eight year period, which makes it kind of okay, doesn’t it? Course it does – it’s for the good of the nation.

Ofgem have said that they’ll allow the energy suppliers to add an average of £12 per year to our bills over the next eight years, and it’ll help to pay for an upgrade costing £24 billion.

But Ofgem are doing us all a favour and have chopped £7bn from the total cost of the work that the energy companies had planed. Mind you, National Grid aren’t happy and are considering making a challenge to the decision.

National Grid has said: ‘In analysing the proposals, we find numerous errors and questionable judgements which we cover in detail in our response.’ Oooh! Under the revised Ofgem proposal, the average increase in bills between 2013 and 2021 will equal £12 per year, starting close to £8 at the beginning of the period, and rising to £15.10 by the end.

TOPICS:   Utilities   Government


  • Marky M.
    Investment is the responsibility of shareholders. They then get their money back in dividends raised from increased sales because of improved efficiency. That's how stocks work. Since when is the responsibility of the customers to pay for infrastructure?
  • Kevin
    All the time. If you make the money come from assets (ie cash/income etc) then you are weakening the holdings of the business and potentially weakening the shareprice. Doesn't sound fair but it's a pretty sensible business practice. Makes a lot of sense. The money all comes from customers anyway, it's just a way of it coming from one source rather than another. And if you don't want to use their product then you don't have to and you won't be paying extra either.
  • Sicknote
    @Marky Mark "Since when is the responsibility of the customers to pay for infrastructure?" Since Thatcher privatised the industry and as a shareholder and customer I get out what I put in; that's what I always spend my annual bonus on.
  • Haggis
    Used to be that companies invested their profits on infrastructure. Now the government orders consumers to pay for private infrastructure. Socialism for the rich.
  • Mr M.
    The tyres on my van are wearing down but I didn't bother allowing for this. Being a plumber can the government please charge everyone who flushes the bog a quid to allow me to get a fancy new set, if there's any money left over I'll get some spinners to compliment them.
  • foxes
    It is exactly the same sort of twisted capitalism that allows banks to take risks with rewards but no liability if things go wrong. If I am paying for investment then I should get the reward if the investment pays off. Don't get me wrong, I know capitalism has always been about taking from the poor to give to the rich. This new form is even more blatant though. Even Thatcher wasn't this obvious about it.

What do you think?

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