London, 4th December 2025
Story
Today Ofgem announced the Final Determinations for the Electricity Transmission, Gas Distribution and Gas Transmission sectors. These determine how much money can be spent from 2026-2031 by the companies who run these services.
- The Ofgem analysis shows an overall increase in bills due to gas and electricity grid upgrades of £108. Taking into account efficiency savings of new electricity grid infrastructure they are projecting a net cost on energy bills of £30. However, these figures mask the fact that most of this overall increase in cost is due to gas grid upgrades.
- The additional investment in the electricity transmission network will cost £64 and it will save households £80 by increasing the amount of low-cost renewable electricity which can flow from Scotland to England and Wales. This means the electricity grid upgrades will produce a net saving to households of £16.
- There has been major underinvestment in the power network for decades and this investment is needed to keep the network running, make it more secure and ultimately reduce costs.
- 65% of the announced new investment is in the gas network. 35% of the new investment is in the electricity network. A lot of this investment is business as usual spend. Some of this investment will enable us to use more of our homegrown cheap renewable power and to better harness our domestic wind resources in the future.
- The spike in fossil fuel prices following the Russian invasion of Ukraine has cost the UK £183billion. History shows us that this was not a one-off event, and that the shocks caused by fossil fuels leave lasting damage on households and the economy.
- This crisis would have been much worse without investment in renewables. Renewables have lowered the wholesale cost of electricity by 25% and saved the UK over £100bn since 2010.
- This new investment in the electricity network will instantly allow us to use more of the renewable electricity we already generate and allow us to generate more low-cost renewable energy moving forward.
Quotes
Susanna Elks, Senior Policy Advisor at E3G, said:
“Dependence on fossil fuels has devastated the UK economy and cost UK households and business an extra £183 billion in the last 4 years. To protect them from future fossil fuel price spikes and support energy independence the UK must modernise its grid infrastructure. The electricity upgrades announced today will help unleash renewables and create a net saving of £16 on electricity bills. The power grid investment will save households money.”
Available for comment
Susanna Elks, Senior Policy Advisor, UK Electricity
m: 07 577 110 942 | e: susanna.elks@e3g.org
Notes to editors
- E3G is an independent think tank working to deliver a safe climate for all. We drive systemic action on climate by identifying barriers and constructing coalitions to advance the solutions needed. We create spaces for honest dialogue, and help guide governments, businesses and the public on how to deliver change at the page the planet demands. About E3G
- For further enquiries email press@e3g.org or phone +44 (0)7783 787 863
