Energy companies are given green light to spend almost 24 billion pounds in the UK electric network, in motion that will further increase household bills.
In its draft price control judgment for energy network companies, energy guardian, PostponementMore than 15 billion pounds are approved, which is spent on the transmission and distribution networks in five years by 2031. years.
Further 8.9 billion pounds will be invested in the National Electric Network of High Voltage – the largest expansion of the network since the 1960s – with an additional 1.3 billion per top.
Financing will enable 80 large energy infrastructure projects by 2030. years and comes in the midst of the government to reinforce renewable sources in the UK to help improve energy security.
However, to cover the costs of investment, household accounts will increase by £ 104 to 2031. – 30 pounds for gas networks and £ 74 for the electricity network. This means an additional 24 lbs per year on accounts, which remain higher than before Energy crisiswho began to escalate 2021. years.
The controller added that the accounts would be even more – more than £ 30 – without investment, because the funds will allow the UK to make our pure renewable energy sources, so we do not have to pay expensive gas plants. “
The work has Faced questions Through the price of its plan to switch to the system clean power until 2030. years, which said it would eventually lead to lower accounts.
Jonathan Brearley, the CEO of Offerg, said that the main investments in energy networks were vital to “ensuring that the system has greater impact resistance from volatile gas prices that we do not control”.
He added: “Nothing is an option and costs more – this is a critical national infrastructure. As soon as we build a network that we need and investing our resistance, lower payments for bill payments will be in the future.”
On Tuesday, O of the firewall take effectReducing the typical annual long fuel law for households by 7% to £ 1,720.
Analysts at the leading forecasting Cornwall Insight expect the price to fall for an additional £ 22 – a decline of about 1% – on the equivalent of 1,698 lbs per year for a typical double fuel consumer in October.
Cornwall pointed out the uncertainty caused by the air of Israel against retaliation against Iran and Tehran, which pushed wholesale prices. However, prices recently fell as the truce still holds.
The cap remains hundreds of weight above the level before the pandemic, even when adjusted to inflation, and it is unlikely that the prices will significantly reduce significantly in the next few years, consulting warns. Further little decline in CAP in January, followed by a slight increase in April.
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Ofgem draft judgments on energy network consumption includes suggestions for increasing returns that investors can enter into capital Company grates. The final decision will be published by the end of the year.
Brearley insisted that the regulator built cost control in its plan and negotiated a fair contract for investors and consumers. “We will not hesitate to intervene if network companies do not deliver on time and on the budget,” he said.
Ofgem proposed capital costs of 6% for private investments in Grid, compared to 4.55% in the previous five years. National NetworkSsen Transmission and Scotland Power are among the service programs that submit plans and asked for up to 6.9% in return.
SSEN’s parent company SSE said that they “are not proportionally in globally competitive markets, robust market evidence and significant business risks in the transfer of electricity”.
However, SSE’s action increased by 0.85%, the national retina rose by 1.2% and the Spanish owner of Scottish power Iberdrol increased by 0.6%, suggesting shareholders announcing shareholders.
Lawrence Slade, the Chief Executive Director of Energy Networks, said: “For the next five years, it is vital in the UK and providing funding to deliver it.
