Ofgem says power firms ‘must do more for less’

Five of the six companies that own and operate Britain’s local electricity network – including ScottishPower and SSE – have been told they must do more to cut costs for consumers.

Energy regulator Ofgem has rejected their business plans for the period between April 2015 and March 2023, with Western Power Distribution – which serves customers in the Midlands, south-west England and south Wales – the only company to have its price controls agreed early.

SSE operates the network in northern Scotland, while ScottishPower’s SP Energy Networks manages central and southern Scotland, along with Cheshire, Merseyside, north Shropshire and north Wales.

Around 19 per cent of an annual electricity bill is made up of network distribution costs and Hannah Nixon, Ofgem’s senior partner for distribution, said: “We understand that energy costs are a big concern for consumers and we set a high target for demonstrating value for money.

“We are pleased that nearly all companies have pledged to cut bills, but we feel that most companies can go further in cutting their costs and expect to see further improvements when they resubmit their plans in March.”