Ofgem calls for review into charging arrangements

23 February 2009

Gas and electricity market regulator Ofgem has called for an urgent review into charging arrangements concerning access to the grid. 

According to the organisation, increases in consumer electricity bills could be prompted by a rise in costs related to bottlenecks in the national grid. 

It said that part of the potential rise in costs, particularly in Scotland, is connected with attempts to speed up connections for renewable energy projects. 

Writing to National Grid Commercial Director Alison Kay, Ofgem's Director of Transmission Stuart Cook said: "Given the significant level of forecast costs and the fact that the rate at which constraint costs are incurred will increase significantly in the next few weeks, we consider this matter requires your immediate attention." 

Recently, independent price comparison and switching service uSwitch.com said that, while gas and electricity providers have been cutting their prices, the reductions "will not even scratch the surface" of fuel poverty in the UK.