Energy networks just secured a £28bn upgrade package and the regulator says the investment will harden Britain’s grids against shocks and support a clean-power economy.
Most of the cash goes to gas with £17.8bn approved to keep Britain’s network “among the safest, most secure and resilient in the world” and ready for the long transition off fossil fuels.
Electricity networks get £10.3bn to expand capacity and cut outages as the country electrifies heat, transport and industry.
Together the programme climbs to an estimated £90bn by 2031 as follow-on upgrades roll through both systems.
Ofgem says investing now is cheaper than waiting because stronger grids cut reliance on costly imported gas and slash constraint costs that push up bills.
Even so the spending hits bills faster than new capacity comes online adding £108 by 2031 split £48 for gas and £60 for electricity.
Electricity expansion pays for itself by reducing bills by £50 through lower gas exposure and more efficient power flows even at peak demand.
The net effect is a bill increase of about £30 by 2031 or less than £3 a month with costs expected to fall over time.
Ofgem chief Jonathan Brearley said: “The funding announced today will keep Britain’s energy network among the safest, most secure and resilient in the world. The investment will support the transition to new forms of energy and support new industrial customers to help drive economic growth and insulate us from volatile gas prices.”
He added: “But this is not investment at any price. Every pound must deliver value for consumers. Ofgem will hold network companies accountable for delivering on time and on budget, and we make no apologies for the efficiency challenge we’re setting as the industry scales up investment.
“We’ve built strong consumer protections into these contracts, meaning funds will only be released when needed and clawed back if not used. Households and businesses must get value for money, and we will ensure they do.”
Regulators spent 2025 tearing through company submissions and rejected or trimmed proposals that did not stack up for consumers.
The scrutiny cut more than £4.5bn from initial bids which Ofgem says proves the challenge process is working.
The approved plan funds 80 transmission projects over five years adding new lines substations and control systems to move clean power to millions of homes as demand surges.
We all have to pay £108 more for network upgrade says Ofgem appeared first on Energy Live News.