Energy bill payers could get an extra £10.67 off their bills following the Government’s buy-out of the National Grid’s Electricity System Operator (ESO) arm, according to campaigners.
Last week, the National Grid announced it had reached an agreement with HM Government to sell the ESO division for £630 million and it will now be known as the National Electricity System Operator (NESO).
The End Fuel Poverty Coalition and Warm This Winter campaign groups have welcomed the move saying it could bring down bills as long as the government passes on savings to customers.
The End Fuel Poverty Coalition coordinator Simon Francis said:
“The National Grid made £14bn profit during the last few years and looking at NGESO, they made £619m profit in the last two years alone, so we believe this means that the price the state paid is a good deal.
“For the next two years, it will end up being a neutral cost to the taxpayer as there won’t be profit and we are presuming instead that will be used to “pay back” the price of the deal.
“In year three however, If they removed profit from NESO, it would mean they could bring bills down by £10.67 a year, so the question then is, will the Government pass that on to bill payers?”
The End Fuel Poverty Coalition and Warm This Winter are asking ministers that question and will be publishing the response.
Warm This Winter spokesperson Caroline Simpson added:
“This looks like a great deal for the government and the taxpayer. We need energy security to bring down bills once and for all and we also need to end the obscene levels of profits made by different energy companies and put that back in people’s pockets.
“There has been a lot of disinformation about this deal which is not helpful to those truly seeking a fair energy system and we see this as a great step forward towards that goal if customers benefit with cheaper bills.”
