Ofgem approves £28 billion upgrade to UK energy networks, adding £108 to household bills.
The regulator’s final decision increases the level of spending from a previously proposed £24 billion.
Under the plans, around £17.8 billion will go towards gas transmission and distribution systems. While a further £10.3 billion will be used to strengthen the country’s high voltage electricity grid.
The regulator says the work is needed to modernise ageing infrastructure, prepare the gird for growing electricity demand, and support the shift towards cleaner energy.
However, because the upgrades are funded through energy bills, households will see a gradual increase in network charges.
By 2031, Ofgem estimates the average household will pay £108 more per year. This includes an extra £48 towards gas networks and £60 towards electricity systems.
Last week, Rachel Reeves’ announced that she would cut energy bills by £150 in April 2026.
Energy bills are already set to rise in January, by £3 a year, after Ofgem announced a 0.2% increase to its price cap just before the budget was announced.
The regulator argues that better infrastructure will help lower certain system costs over time, potentially limiting future price spikes.
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HeadlineHousehold Bills to Increase after £28bn Investment Plans
Short HeadlineEnergy bills to increase by £108
StandfirstOfgem have approved £28bn energy grid investment plans, that are expected to increase energy bills by £108.
Ofgem approves £28 billion upgrade to UK energy networks, adding £108 to household bills.
The regulator’s final decision increases the level of spending from a previously proposed £24 billion.
Under the plans, around £17.8 billion will go towards gas transmission and distribution systems. While a further £10.3 billion will be used to strengthen the country’s high voltage electricity grid.
The regulator says the work is needed to modernise ageing infrastructure, prepare the gird for growing electricity demand, and support the shift towards cleaner energy.
However, because the upgrades are funded through energy bills, households will see a gradual increase in network charges.
By 2031, Ofgem estimates the average household will pay £108 more per year. This includes an extra £48 towards gas networks and £60 towards electricity systems.
Last week, Rachel Reeves’ announced that she would cut energy bills by £150 in April 2026.
Energy bills are already set to rise in January, by £3 a year, after Ofgem announced a 0.2% increase to its price cap just before the budget was announced.
The regulator argues that better infrastructure will help lower certain system costs over time, potentially limiting future price spikes.
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