This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/money/2018/dec/18/energy-bills-ofgem-national-grid
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Energy shakeup could cut bills by £45 a year | Energy shakeup could cut bills by £45 a year |
| (about 2 hours later) | |
| The energy regulator has provided some relief from rising energy costs by announcing measures that will reduce bills by about £45 a year from 2021. | The energy regulator has provided some relief from rising energy costs by announcing measures that will reduce bills by about £45 a year from 2021. |
| Ofgem said it would “drive a hard bargain” with companies that run the wires and pipes that supply the UK’s electricity and gas, halving the level of returns they can make. | Ofgem said it would “drive a hard bargain” with companies that run the wires and pipes that supply the UK’s electricity and gas, halving the level of returns they can make. |
| Consumer groups welcomed the move, saying networks had “had it too good for too long” and urging the regulator to “hold its nerve” against the inevitable industry pushback. | Consumer groups welcomed the move, saying networks had “had it too good for too long” and urging the regulator to “hold its nerve” against the inevitable industry pushback. |
| National Grid shares fell by nearly 4% and the company said it was disappointed by the decision, which it believes does not reflect the “level of risk borne by transmission networks”. The company runs the national electricity grid and accounts for about 3% of a typical bill. | National Grid shares fell by nearly 4% and the company said it was disappointed by the decision, which it believes does not reflect the “level of risk borne by transmission networks”. The company runs the national electricity grid and accounts for about 3% of a typical bill. |
| The body that represents power and gas grid firms, the Energy Networks Association, warned the proposals would jeopardise the investment needed for the switch to a greener and smarter energy system. | The body that represents power and gas grid firms, the Energy Networks Association, warned the proposals would jeopardise the investment needed for the switch to a greener and smarter energy system. |
| Big six energy firm SSE saw its share price down more than 2%, and its network arm said it was disappointed and the decision ran contrary to independent analysis. | |
| As regulated monopolies, National Grid and other network companies have price controls set by Ofgem that dictate how much they can spend and profit. The current limits have been criticised for allowing firms to earn “sky high” profits totalling £7.5bn. | As regulated monopolies, National Grid and other network companies have price controls set by Ofgem that dictate how much they can spend and profit. The current limits have been criticised for allowing firms to earn “sky high” profits totalling £7.5bn. |
| The move today should save consumers a collective £6.5bn over the next period of controls, which start in 2021. | The move today should save consumers a collective £6.5bn over the next period of controls, which start in 2021. |
| Ofgem also announced a shakeup of how access to energy grids is charged, which will see the nearly 1m households that have fitted solar panels facing higher energy bills as a result. According to Ofgem figures, the average energy bill on a default tariff – the most common bill – is £1,221. | Ofgem also announced a shakeup of how access to energy grids is charged, which will see the nearly 1m households that have fitted solar panels facing higher energy bills as a result. According to Ofgem figures, the average energy bill on a default tariff – the most common bill – is £1,221. |
| Jonathan Brearley, the regulator’s executive director for systems and networks, said: “Our proposals for the new network price controls and charging reforms will help build a lower cost, fairer energy system which is fit for this smarter, cleaner future.” | Jonathan Brearley, the regulator’s executive director for systems and networks, said: “Our proposals for the new network price controls and charging reforms will help build a lower cost, fairer energy system which is fit for this smarter, cleaner future.” |
| The level that Ofgem has set the returns for network firms is at the bottom of a range it published in March. The regulator defended the level, saying that real world examples showed that companies could operate on such returns and investment would not be threatened. | |
| Gillian Guy, the Citizens Advice chief executive, said: “Ofgem’s commitment to a tougher price control should curb the excess profits networks have been allowed to make. This is good news for people as this should result in lower bills.” | Gillian Guy, the Citizens Advice chief executive, said: “Ofgem’s commitment to a tougher price control should curb the excess profits networks have been allowed to make. This is good news for people as this should result in lower bills.” |
| Industry watchers said the step could see calls for money to be returned to consumers for historical overcharging. | Industry watchers said the step could see calls for money to be returned to consumers for historical overcharging. |
| Jonathan Marshall of the ECIU thinktank said: “By effectively admitting that network companies’ revenues have been too high for years, it wouldn’t be surprising to see more calls for money to be returned to customers.” | Jonathan Marshall of the ECIU thinktank said: “By effectively admitting that network companies’ revenues have been too high for years, it wouldn’t be surprising to see more calls for money to be returned to customers.” |
| Analysts said the move was “broadly negative” for network firms because of the lower-than-expected limit on returns. | |
| Energy bills | Energy bills |
| Consumer affairs | Consumer affairs |
| Household bills | Household bills |
| Ofgem | Ofgem |
| National Grid | National Grid |
| Energy industry | Energy industry |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on Google+ | Share on Google+ |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |