UK households face higher energy bills as network costs rise; by 2031 the total bill is projected to increase by about £108, with roughly £48 allocated to gas networks and £60 to the electricity grid.

Ofgem approves an initial £28 billion five-year investment to upgrade energy infrastructure, above the provisional £24 billion plan.

The investment breakdown allocates about £17.8 billion for gas transmission and distribution and £10.3 billion for strengthening the high-voltage electricity network to bolster energy security and enable more renewable generation.

Greenpeace UK calls for robust safeguards and regulation to ensure value for money and to ensure upgrades support storage and flexible demand, reducing the need for costly infrastructure.

Industry feedback is mixed: energy executives see the investment as essential for security and competitiveness, while Greenpeace urges safeguards to protect bill-payers.

Chancellor’s Budget moves include scrapping the Energy Company Obligation scheme to offset costs.

The upgrades are designed to bolster energy security, resilience, and support the government’s green-energy ambitions by the end of the decade.

Energy Secretary Miliband urges companies to pass the full £150 saving to consumers; Ofgem promises protections with funds released only when needed and clawed back if unused.

Ofgem leadership stresses value-for-consumers and accountability, with the regulator enforcing timely, on-budget delivery and ensuring every pound delivers tangible benefits.

The regulator reiterates that investment must deliver consumer value and will hold network companies to strict time and budget constraints.

Ofgem emphasizes ongoing accountability, ensuring every pound benefits consumers and that projects are delivered on schedule and within budget.

The programme aims to diversify away from gas, expand grid capacity for offshore wind and renewables, and eliminate transmission bottlenecks that waste energy.

Cost controls are laid out with network operators delivering a secure supply over five years, delivering resilience and potentially lower wholesale costs over time.

Ofgem’s final price-control verdict for the five-year period reflects adjustments from the provisional approval.

The decision sits within a broader energy policy context, including government cuts to power bills and the scrapping of the Energy Company Obligation as DESNZ frames upgrading networks as essential for security.

Policy measures include removing a portion of renewables obligation costs for three years and scrapping the Energy Company Obligation, with expected near-term bill reductions though pass-through to consumers remains.

The government and DESNZ back the plan, arguing upgrades are vital for security and affordability and noting offset measures to help bill-payers.

Key figures include Ofgem’s chief executive and National Grid, with the latter set to receive funding to maintain and upgrade gas transmission networks.

The package is geared to strengthen the grid for higher renewables, reduce gas dependence, and support economic growth and energy security.

Ofgem expects costs to fall in future years as renewables expand and wholesale power costs ease.

The plan was reduced by more than £4.5 billion from the initial submission yet the funded amount rose relative to earlier proposals due to industry pushback and needs like transmission development.

National Grid supports the investment, noting the need to increase transmission capacity to improve reliability across roughly 80 planned projects nationwide.

Industry responses from SSE and National Grid welcome the investment but flag ongoing reviews of the framework’s effectiveness to ensure investability and practicality.

DESNZ says upgrading energy networks is essential for lights, security, and long-term savings, even if near-term bills rise.

The plan exceeds the regulator’s earlier £24 billion summer proposal and will underpin more than 80 projects, including new high-voltage cables and upgrades to existing lines.

Average household dual-fuel bills are forecast to be around £1,738 in January under the price cap, with net increases by 2031 expected to be modest after all costs are accounted for.