Ofgem has proposed reforming the way the UK’s energy system works, which it claims could cut consumers’ bills by £45 a year from 2021.
The move would involve limits being placed on how much money energy network firms can pay to their shareholders- the energy regulator wants to set the maximum level of returns at 4%, about 50% lower than previous price controls.
It says this would help customers save around £30 a year, with the additional £15 off customer bills coming from proposals made in November to reform network charges.
The regulator also wants to incentivise electric vehicle (EV) owners to charge their cars outside peak times to reduce pressure on the grid and maximise the amount of capacity available.
Jonathan Brearley, Executive Director for Systems and Networks, said: “Our proposals for the new network price controls and charging reforms will help build a lower cost, fairer energy system which is fit for this smarter, cleaner future.”