Energy networks to face MP grilling
Energy suppliers could breathe a (brief) sigh of relief today as the Energy and Climate Change Committee’s latest inquiry isn’t about them.
As the public furore into rising energy bills rumbles on, the committee of MPs is now looking into energy network costs, which regulator Ofgem estimates make up around 23 per cent of a dual fuel – gas and electricity – bill.
The cost of transporting energy is one of the key components that drive up energy bills, after higher wholesale costs and green levies.
Network charges fell by 50 per cent in the first 15 years after privatisation of the industry, but they have been rising again as new networks are built to replace old ones and help connect low carbon energy.
“Questions remain on how transparently current and future network costs are determined and how effective Ofgem is at monitoring and scrutinising the charges and profits of network companies,” said the committee, which is inviting responses by 2 April.
Energy suppliers have taken a public battering over the past few months, with Labour leader Ed Miliband pledging to freeze bills if elected. The government has rolled back some green levies from bills and into general taxation after pressure from the companies.