Energy network upgrades to cost you £88Costs will be added to household energy bills

16 July 2012

Electricity pylons

Upgrading Britain's electricity and gas network could cost the average home £88 over the next eight years.

Energy regulator Ofgem is consulting on its proposal to spend £22 billion upgrading Britain's electricity and gas networks. 

It says energy bills would have to go up to cover this cost and the average additional cost for each household would be around £11 a year for the next eight years.

Which? energy expert Sylvia Baron says: 'Whilst these increases are out of consumers' control, households can still cut their energy bills by much more than £11 a year by switching to a cheaper tariff and taking small steps to save on energy costs'.

Energy bill price increases

Ofgem's proposed increases would be staggered - bills would initially be increased by an average of £7 in 2013, rising to £15 by 2021.

Network costs currently account for about 20% of householders' energy bills. 

Investment needed

The majority of the £22 billion would be used to upgrade the electricity network including laying undersea cables. 

Ofgem claims these improvements would create 7,000 jobs. The plans also include connecting 80,000 households to the gas network.