Ofgem says households will pay £11 less in electricity bills after forcing energy companies to slash prices

The regulator also hit generator giant Drax with the largest fine ever issued

Energy regulator OfGem has introduced new rules in a bid to reduce the number of failing energy firms (PA)

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.