Ofgem approves £24 billion investment to upgrade UK's gas networks and electricity grid

Ofgem has approved an initial £24bn investment programme to enhance energy security and enable the transmission of more clean energy from renewable sources. Over £15bn will ensure the safe operation of gas networks, while £8.9bn will be invested in the electricity network. This investment aims to boost electricity network capacity, protect households from volatile gas markets, and connect clean power generation to the grid by 2030.

The investment will upgrade over 4400km of overhead lines, deliver 3500km of new circuits, and include offshore investments. It will increase the grid's capacity to handle electricity from renewable sources, supporting growth and enhancing energy security.

Ofgem has scrutinized spending proposals to ensure value for billpayers. The CEO highlighted the importance of investing in a resilient energy system to control prices and ensure energy security. The investment is expected to increase network charges by £104 by 2031, with £52 allocated to expanding electricity grid capacity.

The net cost of these investments on bills is estimated to be around £24 a year by 2031. The draft determinations are open for consultation, with final decisions expected by the end of 2025.

According to the source: Ofgem.