Households across Britain have paid £800m too much for their energy bills in past seven years because regulator was ‘too soft’
- Households have paid at least £800million too much for their energy bills
- The National Audit Office claims Ofgem set over-generous price controls
- It also said that the targets set by the regulator were not tough enough
Households have paid at least £800million too much for their energy bills because regulators were soft on power network companies, the spending watchdog says.
In a report, the National Audit Office says targets set by regulator Ofgem for the firms running Britain’s electricity grids and gas pipes were not tough enough.
It also claims Ofgem set over-generous price controls that let network operators make excessive profits at the expense of customers.
A report by the National Audit Office has found that households have paid at least £800million too much for their energy bills. (Stock image)
Because of the mistakes, the NAO says, households – who pay for energy networks through levies on their bills – had paid at least £800million more than necessary over the past seven years.
Ofgem said: ‘We acknowledge the overall costs turned out to be higher than needed. Our tough new round of price controls will lower returns to save consumers money.’
The National Audit Office says targets set by regulator Ofgem for the firms running Britain’s electricity grids and gas pipes were not tough enough. (Stock image)