LONDON- Over the current eight-year regulatory period from 2013 to 2021, British households have overpaid electricity networks by a minimum of 800 million pounds.
Britain’s infrastructure for energy is owned by firms like SSE, National Grid and Iberdrola’s Scottish Power.
Opposition Labour Party has criticised this system and were intending on regaining state ownership on energy networks if elected.
Ofgem’s price control system network operators have presented investment plans with the work they intend on doing and the expenditure. It assesses the plans and puts limits on the network operator margins.
Ofgem allowed a few companies to set a higher cost budget and low network performance targets- and it was then that this amount of 800 million pounds was calibrated.
The network costs amount up to 20% of an average electricity bill which is 130 pounds a year.
Costs have been higher than necessary but the system was undergoing improvements.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.