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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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Industry insiders: Lower bills are an 'heroic assumption'

Drax Power Station near Selby, as the Government outlines an Energy Reform bill that will see energy bills rise by around £100 by 2020. Credit: PA

Energy Secretary Ed Davey has claimed that adding around £100 to annual household energy bills by 2020 will reduce costs in the long term, but this was described by an industry insider as an "heroic assumption", ITV Business Editor Laura Kuenssberg said.

Another industry source cast doubt on the government's assumption that energy efficiency will offset increasing costs.

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