Ofgem sets out plans for investment worth £17bn

Picture: PA

Picture: PA

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REGULATOR Ofgem yesterday laid out plans for Britain’s energy suppliers to invest £17 billion in renewing and maintaining electricity networks and connecting its small-scale regeneration.

The decision will see five out of the six companies that run the UK’s local electricity network carry out the work which should improve reliability and customer service.

Ofgem said it had set “challenging targets” for companies to continue improving reliability, speed up new connections to the network and increase work with “vulnerable consumers”.

The regulator’s chief executive, Dermot Nolan, said: “Today’s plans represent good value for consumers. There will be significant investment in Britain’s electricity network, and reduced pressure on bills.

“Ofgem expects network companies to step up and take a more visible and active role in helping customers, particularly the most vulnerable.”

Confirmation of the investment came as it emerged that Britain’s single largest power generator is to pay a record penalty of £28 million after it failed to meet a target on helping poor households save energy.

North Yorkshire-based Drax, which meets 8 per cent of the UK’s electricity demand, was one of two companies punished by Ofgem for not doing enough under the UK government’s community energy saving programme (CESP).

The regulator said the actions of Drax and InterGen meant several thousand households in some of the most deprived areas in Britain missed out on energy-saving measures which would have helped lower bills.

Investigations are continuing into four other energy firms which failed to deliver their obligations under the CESP scheme.

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