Britain’s Ofgem launches energy cost allocation review

Published 30/07/2025, 11:44
Britain’s Ofgem launches energy cost allocation review

Investing.com -- Britain’s energy regulator Ofgem launched a review on Wednesday into how costs are allocated across the energy system, exploring alternative pricing models for consumers to better adapt to increasing renewable energy supply.

Ofgem noted that decreased dependence on gas prices is expected to lower the variable costs within the energy system.

"However, fixed costs, such as those needed to upgrade the energy network to deliver cleaner and more secure power to our homes – could rise," Ofgem chief executive Jonathan Brearley said in a statement.

The regulator’s initiative aims to address these changing cost dynamics as the country transitions to a greener energy infrastructure.

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