Britain’s energy regulator Ofgem has claimed success in forcing power firms to cut costs, saying electricity bills will be £2.1 billion cheaper as a result.
Each household will pay £11 less, and Ofgem said the electricity firms — SSE Power Distribution, Electricity Northwest, Northern Powergrid, UK Power Networks and SP Energy Networks — will also spend £17 billion over the next eight years to renew the power network.
Compensation for customers who experience power cuts in severe weather will also rise from £27 to £70 from next April.
The regulator also hit generator giant Drax with the largest fine it has ever issued — £28 million for failing to hit targets to insulate the homes of low-income households. Another generation firm, InterGen, got an £11 million fine.
“Several thousand households in some of Britain’s most deprived areas [missed] out on energy-saving measures which would have helped lower bills and keep homes warm,” Ofgem said.Reuse content