Another energy bill rise is on the cards as Ofgem gives network 'upgrade' approval

BRITAIN’S energy watchdog has given the green light to an initial £28billion of investment to upgrade UK energy infrastructure, but revealed the move will push up network charges on household bills by £108.

- 

In its final verdict on price controls for energy network firms over the next five years, Ofgem has increased the allowed investment spend from the initial £24billion that was provisionally given the go ahead in the summer.

It said the higher investment level will see £17.8billion spent on gas transmission and distribution networks in the five years to 2031, with a further £10.3billion used to strengthen the UK’s high-voltage electricity network.

But Ofgem said its decision to increase the allowed investment spend will push up household bills by more than first expected, before savings.

Households will see the network charges on bills - which make up around a fifth of average annual energy costs - surge by £108 to £330 by 2031 to cover the cost of the extra investment, up from the £104 rise estimated in its draft verdict in July.

The regulator said this will include £48 for gas networks and £60 for the electricity grid.

It comes after the latest energy price cap change was announced, which will see energy bills rise unexpectedly by 0.2% from January after increases to Government policy costs offset falling wholesale gas prices.