Energy network companies will be allowed to charge households an extra £1 a year after the competition watchdog partially overruled Ofgem to allow more generous returns to investors. However the Competition and Markets Authority sided with the energy regulator that returns should still remain below the level many companies wanted, in a decision welcomed by consumer groups. Analysts had been expecting a more generous decision in favour of the companies that would have added about £2 a year to bills. Companies that manage Britain’s gas pipes and electricity cables derive their funding from levies on consumer energy bills that are regulated by Ofgem through multi-year “price control” settlements. The levies add about £250 a year to a typical annual household bill.
Times 12th Aug 2021 read more »
ENERGY giants have suffered a setback in their campaign to get the regulator to drop plans to cut the returns they can generate. ScottishPower, SSE and other big players appealed to the competition watchdog after Ofgem proposed to make changes that could mean the total profits they make in the networks business fall sharply.
Herald 12th Aug 2021 read more »