The energy regulator has moved to help cut household energy bills by rejecting business plans from five of the six companies that own and operate Britain's local electricity network.
The firms, whose activities form part of the costs which are added to bills, were found by Ofgem to have offered not enough in terms of value to consumers in their plans.
The watchdog found that Western Power Distribution (WPD), which covers south Wales, the Midlands and the South West of England, was the only company that achieved eligibility to have its price controls agreed early.
WPD's business plans, which cover the period from 1 April 2015 – 31 March 2023, included around £7bn of total expenditure of which around £3bn was for investment to upgrade and maintain WPD's network.
Ofgem said the distribution element of the electricity bill, which accounts for 19% of the average annual electricity bill, would be reduced for its customers by an average of 11.6% or around £11.30 in 2012/13 prices.
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