Energy bills: Network charges to rise despite Ofgem price cap decrease

Network charges, which on average make up 22% of energy bills, are set to rise next April despite Ofgem easing the energy price cap. This is likely to raise overall bills unless wholesale energy prices fall drastically. Ofgem's draft determination on how much network providers can charge energy suppliers between April 2026 and March 31, 2031, will push up network costs by £24.

The findings will be subject to consultation before a final decision at the end of the year.

They reflect demands on operators to ready power and gas networks for the expansion in nuclear and renewable energy to meet the country's net zero goals.

Ofgem has given provisional approval to plans which amount to a £24billion programme of investment over the five year term. It represents a fourfold increase on current levels, according to Sky News.

Projects include upgrades to more than 2,700 miles of overhead power lines.

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