April Energy Price Cap - smoke and mirrors
The news today is that the British public are being rewarded with a cost of living reduction by Ofgem reducing the price cap by £117 from April. Wind the clock back to November 2025 and Rachel promised to remove £150 of "green taxes" from our bill from April. So how come a £150 reduction has now become just £117? Where has the £33 per household gone? Well the excuse is that network costs have increased. Energy prices have come down by £38 per year but network costs have increased by £66 per year. So that's an overall increase of £28 yet it should be £33. The reduction should be £122 not £117. Where has the £5 gone? Who is getting that? The network costs have gone up due to the RIIO-3 price control framework. The reason is that we are paying for £28.1 BILLION to upgrade the transmission network through our bills- that's needed because the old model was we have a few power stations and now we have wind turbines, solar panels etc distributed everywhere. The old grid ...