Rethink on electricity pricing gets under way
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.ELECTRICITY price increases for larger users may cease to be controlled following a review of price controls launched yesterday by the industry watchdog, Offer.
Professor Stephen Littlechild, Offer's director-general, also questioned whether regional electricity supply companies should continue to be allowed to pass on to customers costs related to electricity generation.
Professor Littlechild launched a consultation document on the review yesterday, inviting views from anyone involved in the industry as well as customers and consumer groups.
The document also raises the question of whether the profits of the electricity companies should be capped. However, City analysts believe Offer is unlikely to take this action as it would remove the incentive to increase efficiency.
At present electricity supply prices are linked to inflation minus an 'X' factor, which varies from company to company. Costs outside the companies' control can also be passed through to customers. But a subsidiary cap limits the overall increase to inflation for domestic consumers, who are forced to buy from their local company.
The revised price control formulae are due to take affect in April 1994.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments