Ofgem has announced that £28bn will be spent over the next five years on Britain’s gas and electricity networks, but this could rise to £90bn.
Overall, Ofgem estimates that the net increase in bills to cover costs by 2031 will be around £3 per month. But this could be more in the short-term, falling in the longer term. Of the initial money announced, the majority of the funding (£17.8bn) will go towards maintaining Britain’s ageing gas networks.
The End Fuel Poverty Coalition profits tracker estimated that over £50bn of profits have been generated by electricity and gas transmission and distribution firms since 2020.
A spokesperson for the End Fuel Poverty Coalition, commented:
“With the North Sea running out of gas and after years of under investment, upgrades to Britain’s energy grids are vital to ensure a reliable energy supply and to help homes benefit from renewables as they come online.
“But that shouldn’t mean signing a blank cheque for network and transmission companies. These vast sums of essentially public money must come with proper scrutiny and guarantees for consumers.
“These firms have already made billions in profits during the energy crisis, with significant returns flowing to offshore investors and so-called ‘vampire funds’.
“Households can’t keep footing the bill while private equity profits. Every penny added to customers’ bills must be spent delivering clear value for money and actively helping to reduce the cost of energy in the long-term and ensure energy security.”