Electricity bills to be down by £12 a year, says Ofgem

Energy regulator, Ofgem, has set out plans which should reduce domestic energy bills by £12 a year.

Seeking to control the amount afforded to the UK’s electricity network, the energy watchdog has allocated £17bn to the reform of the nations’ electricity distribution system.

This is intended to aid the upkeep of power networks over an eight year period commencing in April next year.

Roughly 8% of the entire energy bill is accounted for by power distribution costs, and it is this figure which is set to fall by an average of £12 for people across the UK, with the amount saved varying depending on location.

In their proposal, Ofgem explained the cuts had been fuelled by £2.1bn in savings accrued over the course of the last year. The regulator depict the scenario as a win-win, due to the combination of enhanced public services and a cut in the amount lost by bill-payers.

Five of the six primary electricity distributors had their plans vetoed by Ofgem due to the lack of value they offered to customers, all huge names within their industry including Northern Power Grid and SSE Power Distribution.


SSE appearing aggrieved by what it deems as unrealistic expectations, regarding price-cuts on the part, of the regulator.

The electrical distributor asserted that it has shown, on numerous occasions, its willingness to provide better value for consumers and pointed to its reputation