New findings from the Public Accounts Committee highlight the need for close scrutiny of all energy supply contracts to ensure consumers are getting value for money.
A Public Accounts Committee (PAC) report published today has found flaws in the licensing system for constructing heavy duty transmission infrastructure needed for offshore wind farms.
Companies granted licences to provide energy infrastructure are guaranteed a retail price index-linked income for 20 years. This income is provided by the National Grid, which recovers its costs from electricity suppliers and generators.
The PAC report found that energy suppliers are likely to pass these costs onto their customers, leading to higher energy bills.
Scrutinise energy contracts
Which? research shows that rising energy costs are households’ number one financial worry. We’ve been campaigning for tighter scrutiny of energy infrastructure contracts to ensure that the consumer gets the best deal. The report’s findings show why tough, independent scrutiny is vital when the government negotiates multi-billion pound contracts with the energy industry.
Which? executive director Richard Lloyd said:
‘As inflation-busting energy price rises kick in, consumers are rightly questioning whether the price they’re paying for energy is fair. With MPs starting to scrutinise the government’s new Energy Bill this week, it must be amended so that contracts for new energy supplies are scrutinised by independent experts, including consumer representatives, so we can be sure they are good value for money.’