Ofgem Announces Renewable Investment Could Raise Energy Bills

Apparently Ofgem has placed price controls on electricity distribution networks to ensure that money spent on renewable energy does not come back to burden consumers. All seven owners of the networks, which distribute electricity to homes and businesses all over the UK, have agreed to the price controls that will raise energy bills for UK households by an average of £4.30 year-on-year.

The consumer group Which? said in December that gas and electricity bills for households could increase by as much as 35 percent by the year 2020. This is due to factors including investment in renewable.

Investment in renewable energy technology and large scale trials of smart grids is expect to reach £7.2 billion in the next five years. Steve Smith, from Ofgem, said that they have set a tough but fair price control for the companies so that they can invest to maintain high performance and adapt their networks to a low carbon economy. The package will be able to deliver a fair price to consumers who will benefit from improved services.

These price controls are part of a price control package, which focuses on the sustainable development of the energy sector. Right now the UK has been trying its best to reach a low carbon economy. However, this is something that is going to be harder than people expect.

It’s been a hard start for this in 2010 due to the extremely cold winter. Due to the cold weather, the use of coal has been on the rise to make sure that people can stay warm this winter. Most coal plants had been on short working schedules, but most of these have since been removed for now.