Household energy bills could rise by an average of £11 by the next decade following plans to upgrade Britain’s electricity and gas networks.
Ofgem announced its £22 billion proposals today, which includes the renewal of the electricity network in England and Wales and the gas networks across the country, which are operated by National Grid.
The plans are expected to increase energy bills by £7 next year, £11 by the end of the decade and £15 by 2021.
The industry regulator claims the project, which could create around 7,000 jobs, is essential for the nation’s plans to cut carbon emissions and increase renewable energy generation capacity.
Lord Mogg, Ofgem’s Chairman said: “Britain faces an unprecedented need to invest to replace ageing infrastructure, meet environmental targets and deliver secure supplies. This needs to be carried out at a time of global financial uncertainty, which makes attracting investment difficult but possible.
“We are driving improvements in company performance to ensure costs are kept as low as possible for consumers by incentivising efficient investment and penalising poor performance.”
Ofgem claims its proposals would also help connect around 80,000 fuel poverty households to the gas network.