Household Bills
Energy bills likely to fall next year
29/11/2019
Energy customers should see a reduction in their bills next year after the regulator significantly reduced the amount of revenue network companies will be able to make.
As part of its network price controls which sets out how much revenue networks can make, Ofgem has cut this figure by almost £1bn for 2020/21.
Based on gas and electricity transmission and distribution costs, Ofgem has reduced the allowed revenues collected to £965m.
This should save customers money on their energy bills next year, though not all of this amount will be reflected on consumer bills.
The regulator said the reduction is due to lower interest rates in debt markets and because on the whole, network companies are spending less than expected. As a result, Ofgem can make a proportionate reduction to their allowed revenue. Network companies get their funding from Ofgem.
Related Posts
- Illegal and unsafe electric blankets sold online: Five tips to help you avoid duds
- Energy debt soars to £2.5bn as suppliers’ prepay meter practices under review
- Households to be paid again tonight for cutting electricity use
- Energy firms threatened with legal action over forced prepayment meter switches
There are 0 Comment(s)
If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.