Citizens Advice responds to National Grid report on network balancing costs

Responding to a National Grid report on network balancing costs, Gillian Cooper, Head of Energy Policy of Citizens Advice, said:

“In the middle of a cost-of-living crisis, it’s totally unacceptable for energy generators to be making excess profits off people’s bills.

“This report outlines important measures that could help. But now words need to turn into action.

“Ofgem must close any loopholes allowing poor practice to take place. The regulator has to ensure generators are playing fair, so that families aren’t left to pick up yet another bill.”

Background

  • Balancing costs are costs created when National Grid has to buy additional energy from generators. This might happen due to adverse weather conditions or if a power generator fails.

  • Balancing costs are added to people’s bills via the price cap and higher wholesale energy prices

  • Balancing costs have risen significantly over the last two years from £1.3bn in 2019-20 to £3.1bn in 2021-22

Notes to editors

  1. Citizens Advice includes the national charity; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.

  2. Citizens Advice is the statutory consumer advocate for energy and post. We provide supplier performance information to consumers and policy analysis to decision makers.

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