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Electricity price control set to save customers £12 a year

Electricity pricing will be controlled for eight years from April 2015 leading to a £12 a year reduction in household energy bills, Ofgem has announced.

The energy regulator rejected price control plans from five of the six big energy companies, saying they did not represent value for money.

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Energy price controls to save households £12 a year

Households will see an average of £12 a year come off their bill under price control plans for the companies that run Britain's local electricity network.

Energy network companies will have to pay £17bn to upgrade and maintain the network under proposals put forward by industry regulator Ofgem.

Companies will have to spend £17bn to maintain and upgrade the energy network. Credit: Chris Ison/PA Wire/Press Association Images

Ofgem sets price controls for the companies to limit the amount they can collect from customers' bills and incentivise them to improve their services.

The regulator rejected price control plans from five of the six energy distribution companies, saying they did not represent value for money for consumers.

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