Ofgem has approved a £28 billion funding package for Britain’s gas and electricity networks, paving the way for large-scale upgrades designed to improve resilience, expand capacity and support the shift to cleaner energy. The regulator said the investment is intended to ensure long-term system stability while helping protect consumers from future price shocks.
The bulk of the funding, around £17.8 billion, will go to maintaining and reinforcing the gas network, which Ofgem says remains among the safest and most secure in the world. A further £10.3 billion is earmarked for electricity transmission projects, including upgrades to substations, overhead lines and other infrastructure needed to accommodate growing demand as more of the economy electrifies.
Combined, these commitments are expected to rise to around £90 billion by 2031 as both networks continue to expand. Ofgem argues that investing now is more cost-effective than delaying, citing benefits such as reduced dependence on imported gas and lower constraint costs when power cannot be transported efficiently around the network.
Consumers will see some of these costs reflected in bills more quickly than those associated with new grid expansion. By 2031, Ofgem estimates that the investment programme will add around £108 to bills in total. However, efficiencies and reduced system costs are expected to offset much of this, resulting in a net increase of about £30, or less than £3 a month. The regulator says electricity grid expansion alone could cut bills by £50 through reduced reliance on gas and improved network efficiency.
Jonathan Brearley, Ofgem’s chief executive, said the package would keep Britain’s energy networks “among the safest, most secure and resilient in the world”. He added that investment must deliver value for money and that Ofgem would “hold network companies accountable for delivering on time and on budget”. He emphasised consumer protections that ensure funding is released only when required and reclaimed if unused.
The regulator says it has closely scrutinised companies’ spending proposals throughout 2025, rejecting projects that did not provide clear benefits for consumers and pushing for greater efficiency. This review process has resulted in potential savings of more than £4.5 billion compared with initial submissions.
The approved funding will support 80 electricity transmission projects and associated works over the next five years. Ofgem says these upgrades will significantly increase grid capacity, enable more clean energy to reach homes and businesses, and help meet rising demand as the UK pursues economic growth and its net-zero commitments.
