Grid investment announcement
Ofgem has announced up to £24.2bn to deliver new and upgraded infrastructure for Britain’s gas and electricity networks. Of this, £4.5bn will only be made available over the course of the new, longer price control period of eight years (1 April 2013 – 2021) if companies are able to justify this expenditure. The cost of running and maintaining Britain’s energy networks up to 2021 brings the total package to £38.2bn.
The aim of the investment is to help connect new sources of energy generation and ensure the continued reliable transportation of gas and electricity to homes and businesses. Major projects include the building of a sub-sea link to connect Scotland with England and Wales.
They also include £8.7bn of investment to help ensure Britain’s low pressure gas networks, which deliver gas to homes and businesses, remain safe and reliable. Including strict targets for network companies to carry out carbon monoxide awareness initiatives. There will also be funding to enable the connection of around 80,000 fuel poor households to the gas grid, helping them benefit from cheaper fuel.
Ofgem estimates that annual household bills will increase by an average of £12 each year. This amount is not cumulative – for example at the end of the price control in 2021 bills will be around £15.10 higher than today.
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