Outrage has erupted among Independent readers after the UK energy watchdog Ofgem approved a £28bn investment to upgrade gas and electricity networks, which is expected to push household bills up by £108.
Many pushed back at the idea that consumers should bear the cost, stressing that energy companies are already highly profitable and that past underinvestment is a result of prioritising shareholder dividends over infrastructure.
Several highlighted that profits should be used to fund improvements, rather than saddling customers with rising bills.
Others questioned the fairness of the system, noting that watchdogs appear powerless to prevent companies from passing costs onto the public, and argued that government intervention to buy back utilities could ensure profits are reinvested into improvements rather than lining shareholders’ pockets.
Several comments acknowledged that investment is needed to maintain energy security and transition to cleaner power, but emphasised that consumers should not be punished for costs that companies could easily absorb.
Here’s what you had to say:
Astonishing
“Upgrading our gas and electricity networks after years of underinvestment is essential to keep the lights on and ensure energy security for our country.”
Am I the only one to find this statement astonishing? If my local shop decided it could no longer deliver the service it wished to and the only way forward was to charge all the households in its area £100 to fund this, people would be outraged. No one would pay and with good reason.
Energy companies make huge profits and yet there has been “years of underinvestment.” Power corrupts, and total power corrupts totally, to coin a phrase.
juscott
Investment vs shareholder dividends
If investment needs to be made to upgrade the infrastructure, then fine, but I expect the companies to be using all available funds to do so. Only then should they be allowed to raise prices for consumers. They most certainly shouldn’t be allowed to pay any shareholder dividends during this time.
In pretty much no other business would you get away with improving your business and saddling your customers with the costs incurred. That’s what profit is for – improving and growing the business, not lining the pockets of shareholders and giving senior management bonuses.
JoeNinety
Small cost relative to savings
Reading some of the comments on this thread shows we’re no longer a serious country. The grid desperately needs upgrading, and yes, governments of each persuasion could have ensured it hadn’t degraded to such a degree, but we are where we are. An addition of £108, minus the £80 saving, so actually about £30/year by 2031 – less than most people would spend on a meal out – is nothing. No wonder modern governments can’t get anything done.
DrG
Regulator pushing costs onto consumers
It used to be that companies used the money of investors to improve the service. Now the regulator, funded by the companies, constantly pushes those costs onto the consumer. This allows the companies to escape. As with Thames Water, the energy companies are run by greedy people. Let’s go back to what we had, where services were provided by local companies.
PAULT2
Profits over investment
Yes, the investments in power grid infrastructure are definitely needed. Partly because, as private companies, they paid dividends to their shareholders from vast profits instead of re-investing those profits into the infrastructure (or at least a very significant proportion of that profit). Right now, the increase in bills to consumers is not because of the need for investment but rather because they need investment and want the same, if not bigger, profit. And if that means energy costs go through the roof? So be it. They can easily afford it. And if the rest of the public cannot? Tough.
Grumpyoldman38
Watchdogs failing consumers
What’s the point of having ‘watchdogs’… just to watch as we’re ripped off left, right, and centre??? I’d rather pay that money in additional income tax so the government can buy back the energy and water companies from these crooks and swindlers and put the profits into making improvements!!
scud10000
Profits should fund investment
Funny, there was me thinking that bills were for energy actually used. Why aren’t they using profits already made to pay for investment, and let the shareholders take the hit by reduced dividends! Thought that’s what profits were for 🤔 That is what should happen, not expect the customers to keep coughing up the money while shareholders just keep raking in the cash.
deadduck
Some of the comments have been edited for this article for brevity and clarity.
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