Britain’s energy regulator, Ofgem today approved £28 billion of investment to upgrade the nation’s electricity and gas networks from 2026 to 2031. Energy companies now receive the funding they need to modernise infrastructure and handle growing demand.
Bills Rise to Fund Essential Work
Households will see network charges increase by £108 a year by 2031. This breaks down to £60 for electricity transmission and £48 for gas networks. These charges make up about one-fifth of typical energy bills.
Ofgem reduced the original £33 billion request by more than £4.5 billion. However, the regulator raised its July draft figure slightly after network operators highlighted extra needs for electricity upgrades and asset health.
Investment Delivers Clear Benefits
The upgrades fund 80 major projects. Workers will build new power lines, substations and advanced technologies. Consequently the grid will carry more renewable energy from offshore wind farms to homes and businesses.
Moreover expansion cuts costly constraints. Currently operators pay wind farms to switch off when lines overload. These payments waste money. The new capacity eliminates much of this problem.
Long-Term Savings Outweigh Short-Term Costs
Ofgem calculates that electricity grid growth alone saves £50 per household by 2031 through lower gas imports and reduced constraint costs. Overall, consumers avoid £80 in extra charges compared to doing nothing.
Additionally, stronger networks support new factories and data centres. They attract investment and create jobs while shielding Britain from volatile global gas prices.
Therefore this £28 billion plan balances necessary short-term bill increases with substantial long-term gains for security, affordability, and clean energy progress.
