The energy regulator has confirmed a £28 billion upgrade of the UK’s gas and electricity networks over the next five years, a programme that will add £108 to household bills by 2031 but which Ofgem insists is essential to secure the transition to cleaner power.
The regulator said efficiency gains should offset much of the burden, pointing to expected savings of around £80, leaving a net additional cost of about £28.
Thursday’s announcement forms part of a broader £90 billion investment plan running to 2031, supported by “adaptive” funding mechanisms designed to insulate customers from market volatility.
Most spending will go towards maintaining the gas grid, which Ofgem says remains critical while renewable capacity continues to scale.
“Investing now to maintain world-class resilience and expand grid capacity is the most cost-effective way to harness clean power,” it said, citing the price shocks triggered by Russia’s invasion of Ukraine as evidence of Britain’s exposure.
Chief executive Jonathan Brearley stressed that the upgrade programme would be tightly policed. “Every pound must deliver value for consumers,” he said, adding that funds will be released only when justified and clawed back if unused.
The government said the investment was vital after “years of underinvestment”, arguing that modernising networks is essential to cut bills over time and improve energy security.