Bills to rise to pay for energy upgrade

Energy bills are set to rise by an average of £12 a year to pay for a £24bn upgrade of Britain's gas and electricity networks, the regulator Ofgem has announced.

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Ofgem: Energy industry faces 'unprecedented challenge'

Energy regulator Ofgem has welcomed the Government's energy bill plans, but warned the industry faces an "unprecedented challenge" ahead.

In a statement, the regulator's Senior Partner for Markets, Andrew Wright said:

Ofgem welcomes today’s announcement by DECC on the future of energy policy. We will continue to work constructively with Government to get the best outcome for consumers both now and in the future.

Ofgem has played a key role in advising consumers and Government of the challenges Britain faces in attracting significant investment. In 2009 Project Discovery warned consumers that Britain’s energy industry faced an unprecedented challenge and concluded that changes to the current energy arrangements would be needed to deliver secure and sustainable energy supplies.

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