Ofgem states home electricity bills will be cut by £12 a year

Ofgem plans to limit the prices that can be charged by Britain’s six major distribution companies in a drive to lower electricity bills by £12 a ye

14:59 30 July 2014

From April 2015, Ofgen will limit the prices that can be charged by Britain’s six biggest distribution companies to bring down the cost of electricity by an average of £12 a year. This applies to 29 million English, Scottish, and Welsh customers.

Part of the plan is to get distribution companies to invest £17bn to upgrade their networks.

Dermot Nolan, the regulator's chief executive, said: "Today's announcement is all part of Ofgem's consistent drive to get the best deal for consumers, while maintaining a stable regulatory regime which attracts investment as cheaply as possible.”

Among those that were ordered to cut prices include UK Power Networks, Northern Power Grid, SP Energy Networks, SSE Power Distribution and Electricity North West.

The new prices will be applicable from April 2015 to 2023.

Ofgem, which will carry out a consultation, will announce the final decision on the proposals in November.