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Britain’s energy regulator has provided the investment of £ 24bn in the country’s gas and power networks provisionally approval in a step that is already increasing the high domestic energy bills.
The regulator plans to signed an investment of £ 8.9bN in the UK’s high voltage power transmission network and plans to invest more than £ 15bn in the gas network between 2026 and 2031, which is as part of the schemes. Britain’s energy Security.
It marks the first stage of the potential £ 80BN investment in the power network over a five -year period. Togem It is expected that investment will lead to an estimated £ 104 annual increase for fees on domestic bills.
The investment will fund the “largest expansion of the electric grid since the 1960s”, said that Pylon and cables are rolled out to help meet the growing levels of air and solar energy, as part of Britain’s clean power push.
As a result of network investment, the system will be lower cost elsewhere, OFGEM said, anticipating net growth for allegations on domestic bills would be about 24 pounds per year.
The government wants to decree the power system by 2030, requiring about 1,000 km of new onshore cable and 4,500 km offshore cable.
Jonathan Beriali, OFGEM Chief Executive Officer said the investment would “provide a homegron energy system that is better for Britain and better for customers”.
He said: “It will ensure that the system has more flexibility against shocks from unstable gas prices that we do not control.”
However, an increase in network fees is likely to attract the investigation at the time of concern about higher energy bills.
Price -tarWhich controls specific domestic bills, at the end of 2021, gas prices began significantly. It is currently £ 1,720 per year, several hundred pounds more before the energy crisis begins.
The network fee is currently responsible for approximately £ 333 of an annual domestic bill. On Tuesday, OFGEM stated that power transmission and potential total investment in gas networks would add £ 104 to network fees from 2031, of which £ 74 is for power grid and £ 30 for gas networks.
Ofgem has not yet been approved by different expenditure schemes for the lower voltage power network for 2028-33.
The network owners will now review the position of the GEM on their expenses plans before the final fixation in December.
The National Grid, who owns the power transmission network in England and Wales, said on Tuesday that it was “pleased with OFMEM to identify the need for important levels of investment in the network”.
“Now we will review the details contained within the draft assessment to assess whether it gives an investable overall financial package.”
However, the owner of some parts of the transmission grid in Scotland SSEN transmission, stated that the approval of the draft of OGEM did not enough to distribute the “unprecedented” levels of investment required to distribute less and more stable bills.
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