Energy bills to rise after investment is approved

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

- HOLLY WILLIAMS

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 £24bn that was provisionally given the go-ahead in the summer.

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

But Ofgem said its decision to increase the allowed investment 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.