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Spending plan to hit energy bills Spending plan to hit energy bills
(10 minutes later)
UK energy consumers are facing higher gas and electricity bills after industry regulator Ofgem approved plans for higher spending on infrastructure.UK energy consumers are facing higher gas and electricity bills after industry regulator Ofgem approved plans for higher spending on infrastructure.
Ofgem said the firms behind UK gas and electricity distribution can spend £5bn more upgrading their infrastructure.Ofgem said the firms behind UK gas and electricity distribution can spend £5bn more upgrading their infrastructure.
These added costs will be passed on to consumers in the form of a £10 rise in the typical gas bill and a £2-£3 increase in electricity bills. These added costs will be passed on to consumers next year in the form of a £10 rise in the typical gas bill and a £2-£3 increase in electricity bills.
Consumers have been hit by energy price increases throughout the year.Consumers have been hit by energy price increases throughout the year.
Consumer groups have complained that the price increases are unjustified and are threatening to plunge vulnerable people into fuel poverty.Consumer groups have complained that the price increases are unjustified and are threatening to plunge vulnerable people into fuel poverty.
Companies have countered that they have little choice but to pass on record commodity prices to consumers.Companies have countered that they have little choice but to pass on record commodity prices to consumers.
Energy transmission costs will have to rise by an initial 8% to fund the additional spending. Energy transmission costs will have to rise by an initial 8% next year to fund the additional spending on distribution, triggering the rise in household bills.
However, the regulator said the effect on consumers will be "relatively small" as transmission costs account for 3% of total household bills. However, the regulator said the effect on consumers would be "relatively small" as transmission costs account for just 3% of total household bills.