Homes that generate energy could see costs rise

Homes and businesses that generate their own electricity could end up payingextrachargesunder proposals set out by the energy watchdog.

Ofgem said it is consulting on reforms to the £9 billion-a-year charges for the UK’S energy network of pylonsandcablestoensure the costs are “shared fairly between all consumers”.

It is proposing to introduce fixed charges for all households and businesses, rather than charges based on the amount of electricity they take from the grid.

This could save consumers between £5 billion and £7.6bn by 2040, or an average of £15 each a year. But Ofgem also warned some homes and businesses which generate their own electricity through renewables such as solar power could end up paying around £16 more a year.