A major component within household energy bills is set to rise sharply from next year as part of efforts to maintain energy security amid the transition to green power.

The industry regulator Ofgem’s draft determination on how much it will allow network operators to charge energy suppliers from 1 April 2026 to 31 March 2031 will push up the network costs within household bills by £24 a year.

These charges currently account for 22% of the total bill.

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The findings, which will be subject to consultation before a final determination by the end of the year, reflect demands on network operators to make power and gas networks fit for the expansion in renewable and nuclear energy needed to meet net zero ambitions and keep the lights on.

Ofgem says the plans it has given provisional approval for amounts to a £24bn investment programme over the five year term – a fourfold increase on current investment levels.

If rubber stamped as planned, the network cost increases threaten further upwards pressure on bills from next April – a month that has now become synonymous with rising essential bills.

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The watchdog revealed its plans as the 22 million British households on the energy price cap benefit from the first decline for a year.

It is coming down from an annual average £1,849 between April and June to a July-September £1,720.

That’s on the back of easing wholesale costs seen during the spring – before the temporary surge in wholesale gas prices caused by the recent instability in the Middle East.

A new forecast released by industry specialist Cornwall Insight suggested that households were currently on track to see a further, but slight, decline when the cap is adjusted again in October.

At the current level it is 28% lower than at the height of the energy-led cost of living crisis but 10% higher than the same period last year.

The price cap does not limit total bills because householders still pay for the amount of energy they consume.

Ofgem is continuing to recommend that consumers shop around for fixed rate deals in the market as they can offer savings compared to the price cap and shield homes from any price shocks seen within their fixed terms.

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