SSE's share price soared 17% as the energy giant unveiled plans to spend a whopping £33 billion on upgrading the UK electricity network over the next five years. But amidst the excitement, a pressing question remains: who will be looking out for consumers and small businesses?
The government and Ofgem, the regulatory body behind the upgrade, argue that the £80 billion programme is necessary to correct historic underinvestment, prepare for a doubling in electricity usage by 2050, and handle more renewable generation. However, concerns have been raised about whether this massive spending package can be executed within such a tight timeframe.
Critics, including Rachel Fletcher from Octopus Energy, warn that the front-loaded nature of the charges will lead to higher bills, with potential increases ranging from 20% to as high as 70%. For small and medium-sized enterprises (SMEs), which already face significant challenges, these bill hikes could be devastating.
The concern is valid. As Chris O'Shea from Centrica noted in a speech last week, the transmission costs will lead to major concerns about affordability for consumers and businesses. Domestic customers can expect an average £42 increase in their bills, while businesses face increases of 70% on average – with some seeing these network charges double next year.
It's time for Ofgem and the government to acknowledge the impact of this upgrade on small businesses more openly. While energy transition is underway, these are not trivial sums that can be easily absorbed by consumers. As the grid upgrade accelerates, it's essential to consider the human cost – particularly for those already struggling to stay afloat.
The question remains: will Ofgem and the government do enough to mitigate the effects of this upgrade on vulnerable households and businesses? The answer could determine whether the benefits of a modernized electricity network are shared by all.
The government and Ofgem, the regulatory body behind the upgrade, argue that the £80 billion programme is necessary to correct historic underinvestment, prepare for a doubling in electricity usage by 2050, and handle more renewable generation. However, concerns have been raised about whether this massive spending package can be executed within such a tight timeframe.
Critics, including Rachel Fletcher from Octopus Energy, warn that the front-loaded nature of the charges will lead to higher bills, with potential increases ranging from 20% to as high as 70%. For small and medium-sized enterprises (SMEs), which already face significant challenges, these bill hikes could be devastating.
The concern is valid. As Chris O'Shea from Centrica noted in a speech last week, the transmission costs will lead to major concerns about affordability for consumers and businesses. Domestic customers can expect an average £42 increase in their bills, while businesses face increases of 70% on average – with some seeing these network charges double next year.
It's time for Ofgem and the government to acknowledge the impact of this upgrade on small businesses more openly. While energy transition is underway, these are not trivial sums that can be easily absorbed by consumers. As the grid upgrade accelerates, it's essential to consider the human cost – particularly for those already struggling to stay afloat.
The question remains: will Ofgem and the government do enough to mitigate the effects of this upgrade on vulnerable households and businesses? The answer could determine whether the benefits of a modernized electricity network are shared by all.
The big question here is, who's gonna protect consumers from getting slammed with these massive energy price hikes? I mean, £33 billion might be needed to upgrade the grid and whatnot, but £80 billion is a huge chunk of change 
. And yeah, I get it, there's gotta be some investment for the future, but can't we find ways to make it more affordable for small businesses and domestic customers? It feels like they're being left high and dry here 
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. They need to find a way to balance progress with affordability, 'cause let's face it, £42 increase in bills ain't exactly gonna make life easier for anyone 
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. Can't we get some heads up on what's coming down the pipe? And who's gonna help those small businesses that are already struggling to stay afloat? 
We need more than just promises of 'progress' – we need concrete solutions 
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, but what's really bothering me is that we're gonna be seeing higher bills for domestic customers and small businesses! £42 increase in their bills? That's just not right 
. I mean, we should be talking about how we can make this energy transition more inclusive, not just pushing it on the vulnerable ones.
. What if Ofgem or the government could offer some sort of assistance package to help those who'll be hit by these price hikes? Or maybe they could look into ways to make our grid more efficient, so we don't have to go through this in the first place 
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It's not just about consumers, either; what about all the people who rely on affordable energy for their livelihoods? We need Ofgem and the government to step in and make sure this upgrade doesn't leave anyone behind 
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. And let's be real, these huge bill hikes are gonna affect the little guys, SMEs, big time 
. They're already struggling, and this could be the final nail in the coffin. We need Ofgem & gov to step up their game, like, pronto 
like what even is that kinda money for a UK energy giant?! but yooo, the concern about consumers & small biz being left high and dry is legit 
rachel fletcher from octopus energy is on point saying this upgrade could lead to some major bill hikes 
20-70% increase? that's like, a whole lotta cash 
. We need some real solutions, pronto, to make sure this modernized grid benefits everyone, not just the big players 
. I mean, £33 billion is insane, but it's not like we didn't see this coming... right? 
. It's like they're expecting us to just magically absorb these costs without any consideration for affordability. Newsflash: we can't afford it! 
to climb, can't believe they're expecting everyone to absorb these massive bill hikes without even talking about it first 
. feels like we need some more transparency from Ofgem & gov on how they're gonna support these households & businesses through this transition 
they're already working with tight margins, now they'll have to shell out 70% more 