A report by the National Audit Office (NAO) warns the wider economy is likely to suffer if grid capacity isn’t able to meet growing demand for new connections.
Ofgem estimate that £70 billion of investment is required in the grid between 2025 and 2031.
In response to the report, Lawrence Slade, Chief Executive of Energy Networks Association (ENA), said: “NAO’s analysis shows how vital investing to upgrade the grid is for the country to save customers money, strengthen energy security and boost the economy.
“This investment will upgrade our infrastructure, boost energy independence, create thousands of jobs and cement the UK’s position as a clean energy leader—delivering reliable, affordable power for generations to come.”
Consumers collectively paid an extra £1.9 billion on energy bills for constraint costs between 2025 and 2026.
The report by NAO finds the upgrade timetable challenging as 80 projects have been deemed necessary by NESO in its 2024 Clean Power advice, of which 64 are ongoing and others are not expected to be connected by the original target dates.
Mr Slade added: “Long standing Clean Power 2030 targets have helped provide a stable framework for the upgrade work, though from the outset the challenging timescales were seen as possible only through close partnership between Government, industry and regulators.
“Though connections are accelerating, further reform of the planning system is required to allow network operators to go further and faster in work to support achieving these goals.”
Mr Slade also says that the ENA are working on an integrated Electricity Networks Sector Growth Plan to ensure the investment assists with growth across the UK.
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