Energy bills set to go up by £108 per year

Energy bills are set to go up as Ofgem announced a major £28 billion investment in Britain’s gas and electricity networks. By 2031, the average bill will rise by £108 a year to cover bills with £48 going towards gas and £60 towards electricity.

Why are bills going up?

Ofgem’s £28 billion investment is designed to upgrade the energy grids to protect customers from volatile bills over time. A big chunk of the funding will go towards making Britain’s gas networks safer and more resilient.

It's a big upfront cost, but Ofgem believes that investing now will deliver savings of around £80 compared to not expanding the grid, with electricity grid expansion alone expected to reduce bills by £50 by 2031.

What’s the net increase in bills after savings?

As the investment is supposed to bring down bills over time, it’s expected the net increase in bills by 2031 will be around £30 or less than £3 per month. The upgrades are expected to bring costs even further down over time.

What to do if you’re struggling with your energy bills

If energy bills are already a worry, here are some steps you can take:

• Speak to your supplier – they often offer affordable payment plans or even options through hardship grants
• See if you can get government help – there are schemes like the Winter Fuel Payment or Warm Home Discount that can reduce your bills if you qualify
• Get advice – charities like Citizens Advice can guide you through support options

If you’re struggling with household bills, you should also take a look at our cost of living hub which has lots of resources and information on the support available.