Electricity prices are set to fall…but is it enough?

Electricity prices are set to fall…but is it enough?

We all know that the cost of energy for older people is a constant worry, especially as we head towards another winter – many will be concerned about how they will be able to heat their homes adequately and whether they can afford their energy bills this winter.

Well, a recent announcement by energy regulator, Ofgem, can at least provide a small amount of relief.

Price control

Ofgem has set out its proposed price control settlements for five of the six companies that are responsible for running Britain’s local electricity network – in layman’s terms, this is the basis on which it will allow them to continue to provide the supply of electricity – these proposals are due to come into effect from April 2015.

The companies concerned have agreed to invest some £17bn in upgrading and maintaining the local electricity network, while at the same time improving their efficiency to the tune of £2.1bn over the same period.


It is these efficiency savings that are being passed back to the consumer and will see electricity bills fall, by on average, £12 per year per household across the same period – in other words the average householder will save just £96 over the eight year period.

Hard choice

In the current environment, where energy prices have risen at a rate far higher than that of inflation, is this saving really enough especially for older people – some of whom have the hard choice during harsh winters of whether to ‘heat or eat’?

Mature Times would welcome your views on this subject – let us know and we will publish the results.