Thu, 04 Dec 2025

Thu, 04 Dec 2025 Energy grid investment of £28bn to push up household bills

Ofgem says the investment will help lower reliance on imported gas and make wholesale energy cheaper.

* Household energy bills will rise by £30 a year on average due to a £28bn investment in the UK's energy network over 5 years.
* Ofgem has approved the funding, which will go towards maintaining gas networks and strengthening the electricity transmission network.
* The work is expected to add £108 to energy bills by 2031, but people will end up saving about £80 more than they otherwise would due to lower reliance on imported gas and cheaper wholesale energy.
* Companies that run energy networks (power lines, cables, and gas pipes) are separate from suppliers and the investment plan sets a framework for how they deliver a safe and secure supply over 5 years.
* The investment includes: + £17.8bn for the gas network to replace gas pipes and improve cybersecurity + £10.3bn for electricity transmission to upgrade infrastructure, invest in new transmission lines, and reinforce the grid
* Energy bills remain relatively high, but this plan is expected to reduce inefficiencies in the system, such as offshore windfarms being paid billions a year to switch off due to grid constraints.
* The investment will also help lower the UK's dependence on gas and make wholesale energy cheaper.
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