Upgrade of Britain's energy networks will increase cost of energy

Today, Ofgem announced proposals to upgrade and renew Britain's electricity and gas networks with a £22 billion investment plan.

While the suggested scheme aims to ensure that Britain's network remains the most reliable in the world, it comes with a price tag. It is expected to add £11 a year on average to household bills.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "This is the start of a significant investment programme for our nation's energy infrastructure. The work is vital, but it will also come at a cost to consumers, which is why the Government must ensure that households get value for money and that every effort is made to keep the cost of energy at an affordable level.

"The average household energy bill today is £1,252 a year so it's not hard to see why an £11 increase will hurt consumers' pockets. Already over a third of consumers say that household energy is unaffordable, while more than eight in ten rationed their energy use last winter because of cost. This is the reality of the energy crisis facing British homes today. However, it is welcome that as part of this investment more homes will be connected to the gas network - this will be a significant step in reducing fuel poverty as it will reduce their energy costs.

"But for consumers generally they should see this announcement as an early indication of where their fuel bills will be heading over the next few years. It's important that they start to protect themselves by using less energy and paying the lowest possible price for the energy they do use. By learning to manage our energy bills in this way we can start to keep a lid on these costs."