The Press and Journal (Inverness, Highlands, and Islands)

Huge prof­its come at our cost, says char­ity


UK house­holds are over­pay­ing for their elec­tric­ity fol­low­ing Ofgem­set price con­trols, a char­ity has said.

Cit­i­zens Ad­vice said house­holds are “foot­ing the bill for bil­lions of pounds in ex­cess prof­its” made by elec­tric­ity dis­tri­bu­tion com­pa­nies – the firms that own and op­er­ate the sys­tem of ca­bles and py­lons.

Last year the char­ity said that de­ci­sions by the reg­u­la­tor in the way it cal­cu­lated price con­trols across the gas and elec­tric­ity net­works had cost con­sumers a to­tal of £7.5 bil­lion, or an av­er­age of £285 per house­hold over the eight-year price con­trol.

It has cal­cu­lated that house­holds in Mersey­side and north Wales are en­ti­tled to a re­bate of £125, while those in south-west Eng­land and north­ern Scot­land should be given £110 back.

Cit­i­zens Ad­vice chief ex­ec­u­tive Gil­lian Guy said: “Peo­ple across the coun­try are over­pay­ing on their energy bills be­cause some net­work com­pa­nies are mak­ing un­jus­ti­fied prof­its.”

An Energy Net­works As­so­ci­a­tion spokesman said: “The cal­cu­la­tions un­der­pin­ning this anal­y­sis are plucked out of thin air and run di­rectly counter to the con­clu­sions of the in­de­pen­dent reg­u­la­tor and the Com­pe­ti­tion and Mar­kets Authority.”

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