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Household energy bills in the UK are set to increase as part of a substantial investment plan to upgrade the country’s energy infrastructure. Ofgem, the energy regulator, has authorized a £28 billion expenditure over five years focused on enhancing both electricity and gas networks. This funding will be channeled toward maintaining existing gas pipelines and reinforcing the electricity transmission system to ensure a safer, more reliable supply.
The planned improvements are expected to result in an extra £108 added to annual energy bills by 2031. However, Ofgem projects that consumers will ultimately benefit by saving around £80 due to reduced dependence on imported gas and lower wholesale energy costs, thus offsetting much of the increase. The net effect is anticipated to be an approximate £30 rise in bills by that time.
Energy network companies, which operate separately from energy suppliers, hold regional monopolies over power lines, cables, and gas pipes. This new framework determines how these companies will manage cost controls and reliability standards from next year through to 2029. Jonathan Brearley, Ofgem’s chief executive, emphasized that this investment would maintain the UK’s energy networks among the “safest, most secure and resilient in the world.” He also highlighted the necessity of moving away from heavy reliance on gas, explaining that diversifying energy sources will help stabilize future electricity prices and consequently protect consumers’ bills.
The costs to consumers will be split roughly between gas (£48) and electricity (£60). Brearley noted that the increase would be gradual, with a 2-3% rise in bills beginning in April and incrementing steadily over the five years. Additionally, the investment is intended to address existing inefficiencies, such as payments made to offshore wind farms to reduce output when the grid capacity is exceeded. Scottish Power CEO Keith Anderson described the investment as the largest in electricity infrastructure since the 1950s, underlining its importance in modernizing the system for current and future energy needs.
National Gas, which manages the UK’s gas transmission network, will also benefit from this funding. Their chief executive, Jon Butterworth, welcomed the plan, affirming the essential role gas transmission will continue to play in the UK’s energy security. Meanwhile, environmental groups like Greenpeace UK have called for rigorous oversight to ensure that the investment delivers real value without burdening consumers unfairly. Charlie Kronick, senior climate adviser at Greenpeace UK, stressed the need for “robust safeguards and strong regulation” as these network upgrades are implemented.
This investment announcement follows a recent government pledge to cut certain energy costs equal to about £150 on a typical annual bill, aiming to ease the financial pressure on households. The upgrades to the UK’s energy network are positioned as critical to achieving a more resilient and low-carbon energy system in the decades ahead
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