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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Firms to face penalties for poor service

Energy distribution companies will face financial penalties if they fail to put in place measures to help vulnerable customers, the energy regulator has said.

"Our annual customer satisfaction survey focuses companies’ attention on this important area and poor performers will face financial penalties," Ofegem said.

It comes alongside plans to make companies invest in maintaining and upgrading the local electricity network.

Ofgem has also brought in stricter targets for firms to make sure new customers such as businesses and housing developments can get connected to the network more quickly.

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