Ofgem has approved an initial £28 billion package for Britain's energy networks to reinforce safety, security and resilience, while upgrading and enlarging capacity to meet rising demand.

The programme will modernise electricity and gas infrastructure and help shield consumers from volatile global energy prices.

The largest share, £17.8 billion, is earmarked to operate, maintain and replace assets across Britain's gas networks, keeping them among the safest and most resilient worldwide. A further £10.3 billion will go into electricity transmission to boost reliability and unlock extra capacity for electrification and economic growth.

Across both gas and electricity, the overall investment is expected to reach around £90 billion by 2031. Acting now, Ofgem says, is the most cost-effective way to harness more domestic clean power, support growth and reduce exposure to gas price shocks like those in 2022.

As day-to-day operations, asset replacement and maintenance costs flow through to bills faster than long-term expansion, these near-term outlays will contribute more quickly to customer bills even though they form a smaller portion of the total £90 billion programme.

By 2031, network charges are projected to add £108 to typical dual-fuel household bills (£48 for gas and £60 for electricity). Factoring in the benefits of grid expansion, Ofgem estimates households would save about £80 compared with not building out the grid, leaving a net impact of roughly £30 overall, or under £3 per month. Electricity grid expansion alone is forecast to cut bills by £50 by 2031 by curbing reliance on imports and reducing constraint costs.

-- Advertisement --

Jonathan Brearley, Ofgem CEO, said: "The funding announced today will keep Britain's energy network among the safest, most secure and resilient in the world. The investment will support the transition to new forms of energy and support new industrial customers to help drive economic growth and insulate us from volatile gas prices.

"But this is not investment at any price. Every pound must deliver value for consumers. Ofgem will hold network companies accountable for delivering on time and on budget, and we make no apologies for the efficiency challenge we're setting as the industry scales up investment. We've built strong consumer protections into these contracts, meaning funds will only be released when needed and clawed back if not used. Households and businesses must get value for money, and we will ensure they do."

Throughout 2025, the regulator scrutinised spending plans from electricity transmission owners, National Gas and gas distribution companies to secure the best deal for billpayers. Ofgem has set firm delivery milestones, demanded greater efficiency and rejected proposals not in consumers' interests, delivering potential savings of over £4.5 billion (15%) versus initial £33 billion submissions.

The final package will back 80 electricity transmission projects and related works over the next five years, adding new lines, substations and technologies to increase capacity and move clean, domestic power efficiently to homes and businesses, supporting growth.

Welcoming the investment announcement, Scottish Renewables described is as a crucial catalyst for Scotland's ambitious clean power targets.

Stephen McKellar, Head of Grid & Networks at Scottish Renewables, said: "The price control announced by Ofgem comes at a crucial time for Scotland's clean power ambitions putting us on course for a cleaner, more resilient energy future." He stressed that immediate investment in grid infrastructure is essential for accelerating the shift towards a network powered by home-grown clean electricity. Mr. McKellar also noted the significant benefit this would bring to consumers, helping to "protect consumers from future spikes in energy costs similar to the gas price crisis in 2022."

The industry body emphasised the profound economic opportunities this funding presents for Scotland. McKellar asserted that "Renewable energy is Scotland's biggest economic opportunity and this £28 billion investment in the electricity network will drive economic growth bringing tens of thousands of new jobs and substantial benefits to local communities."

Scottish Renewables pledged to maintain close collaboration with industry partners, government bodies, and Ofgem to ensure the successful implementation of the new price control, thereby supporting the long-term goal of a future grid fully powered by renewable energy.