Ofgem has provisionally approved a substantial £24bn ($32bn) investment programme aimed at bolstering Great Britain’s energy security and facilitating the transition towards clean, renewable power sources.
The initial funding is part of an ambitious plan that could see up to £80bn invested in expanding and upgrading the nation’s electricity network, representing a significant step forward in protecting households from volatile international gas markets.
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£15bn of this investment will be directed towards maintaining the safe operation of Great Britain’s gas transmission and distribution networks, ensuring secure supplies for homes and businesses.
An additional £8.9bn is earmarked for high-voltage electricity network enhancements, with a further potential investment of £1.3bn on standby.
The planned upgrades include more than 4400km of overhead line improvements and 3500km of new circuits – doubling offshore investments compared to the previous decade.
By 2030, these initiatives are expected to connect up to 126GW of clean power generation capacity alongside innovative storage solutions.
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By GlobalDataOfgem has rigorously reviewed spending proposals from companies involved in electricity transmission and gas distribution over six months.
This scrutiny led to proposed reductions exceeding £8bn or 26% off original bids deemed not cost-effective for consumers.
The total estimated impact on consumer bills by 2031 includes a rise in network charges by approximately £104 – with contributions from both gas and electricity networks.
However, about half this amount is essential for maintaining safety standards across both grids.
Around £52 from this outlay will target expanding electric grid capacity as reliance on electrified systems grows amidst a shift away from gas dependence.
Ofgem CEO Jonathan Brearley stated: “Britain’s reliance on imported gas has left us at the mercy of volatile international gas prices which during the energy crisis would have caused bills to rise as high as £4000 for an average household without government support. Even today, the price cap can move up or down by hundreds of pounds with little we can do about it.
“These 80 projects are a long-term insurance policy against threats to Britain’s energy security and the instability of prices. By bringing online dozens of homegrown, renewable generation sites and modernising our energy system to the one we will need in the future, we can boost growth and give ourselves more control over prices too.
“However, this can’t be done at any price, which is why we have built in cost controls and negotiated a fair deal for both investors and consumers. And we won’t hesitate to intervene if network companies don’t deliver on time and on budget.”
