Consumers ‘ripped off by greedy energy networks’

Britain’s local power networks are ripping off consumers, Tim Yeo, chairman of the parliamentary energy select committee, said today.

After hearing evidence that every single one of the country’s local operators make a higher return on their investment than the average UK equity investor, Yeo said consumers were clearly getting a raw deal.

“Customers are being ripped off by greedy monopolies and feeble regulators,” he said at today’s hearing.

The networks take energy from the National Grid and deliver it to households across the country.

The average customer pays £87 a year for their services, giving the operators a better return than UK equity investors when they should be getting less because the risk of losses is considerably lower, said Richard Hall, of the Citizens Advice Bureau.

Basil Scarsella, chief executive of UK Power Networks, which saw 460,000 of its customers without power over Christmas, said he welcomed the inquiry: “I accept that as a monopoly we should be scrutinised.”

The hearing comes after Ofgem said it would force Britain’s local electricity network operators to do more to lower costs for consumers.