Ofgem reveals ambitious plans to reduce fuel poverty

British energy regulator Ofgem has revealed ambitious plans to reduce fuel poverty across the UK by connecting more homes to the gas grid, a recent news report has been able to reveal.

Under this new scheme, Network companies will have to deliver more than 90,000 – or 18% more – fuel poor connections by 2021. The change, including a number of other revisions to the Fuel Poor Network Extension Scheme, will come into effect from April 2016.

The scheme is delivered through Ofgem’s RIIO-GD1 price control and helps fuel poor and vulnerable households switch to natural gas by helping towards the cost of connecting to the gas network.

The decision follows the regulator’s 13-month review of the initiative, which included a request for network companies to resubmit their business plans for the fuel poor and identify ways of increasing the number of connections.

They found more than 13,700 eligible households on top of the 77,450 connections identified in their original business plans.

Ofgem said it would allow the companies an extra £17.6 million spending to deliver the additional connections.

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