UK Energy Bills Set to Rise as Regulator Backs £28bn Network Investment
British households are expected to face higher energy bills after the UK regulator approved a £28 billion ($37 billion) spending programme to modernise the country’s gas and electricity networks over the next five years.
The plan, confirmed by Ofgem, forms part of a wider upgrade strategy that is forecast to add around £108 to consumer bills by 2031. The final investment figure is higher than Ofgem’s initial estimate of £24 billion, published in July, and comes despite government ambitions to bring down energy costs.
Upgrades Aimed at Boosting Energy Security
Ofgem chief executive Jonathan Brearley said the spending is intended to support the transition to new energy technologies, help industry access power, and reduce exposure to volatile gas markets.
Britain’s regulatory system requires network operators to submit business plans for approval. The costs are ultimately recovered from consumers through network charges, which currently account for almost one-quarter of the typical household energy bill.
The Department for Energy Security and Net Zero described the investment as vital for protecting the UK’s energy infrastructure and maintaining supply.
Industry Responds to Revised Funding Package
Energy companies broadly welcomed the approval.
SSE, which operates the Scottish and Southern Electricity Networks Transmission business, said it supports Ofgem’s more generous final proposals and will review the full package.
National Grid also backed the decision, noting that demand for power transport is expected to double in the coming years, requiring significant infrastructure expansion.
Campaigners Warn Against Overspending
The End Fuel Poverty Coalition acknowledged the need for grid upgrades and wider access to renewable energy. However, the group cautioned against giving network companies unrestricted spending power, saying the push for investment should not amount to “a blank cheque”.