Gas networks have been given the green light by Ofgem to spend £17.8 billion maintaining pipelines. The regulator confirmed initial spending by electricity transmission network operators of £10.3 billion. However further spending is expected and will be managed by ‘uncertainty mechanisms’ based on updated forecasts. This could reach over £70 billion of network upgrades over the next five years, with further funding released as and when system needs and costs become clearer.
Ofgem said “This investment will upgrade power and gas grids, creating a future-ready system that better shields customers from volatile energy bills”.
The regulator expects that, for households with median energy use, network charges on bills for these sectors could rise by around £108 by 2031, if all of the prospective investment in electricity transmission is needed. It said, “This does not mean that we expect overall energy bills to rise by an equivalent amount by 2031. The investment will deliver bill savings and other benefits for consumers. By increasing the penetration of renewable power and reducing the escalating constraint costs payments made to electricity generators when the grid cannot transmit their power, we estimate savings of £80 by 2031 compared to doing nothing.”
The figures came in Ofgem’s Final Determinations of the investment allowed by electricity transmission and gas networks in the cost control period from 2026 to 2031, known as RIIO-3

RenewableUK’s Executive Director of Policy Ana Musat said: “Investing in upgrading Britain’s electricity grid is absolutely vital to strengthen our energy security, reduce congestion on the network and support the electrification of our economy. Currently, a lack of adequate grid capacity is delaying investments in many sectors including tech, heavy industry and manufacturing, so these upgrades are crucial for economic growth.
“This investment will tackle grid constraints and enable us to get more power flowing from wind and solar farms to British homes and businesses. Electricity demand will increase significantly in the years ahead, so there’s a pressing need to build new infrastructure to keep Britain powered up”.