{"id":115654,"date":"2025-12-05T09:00:00","date_gmt":"2025-12-05T09:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=115654"},"modified":"2025-12-04T21:41:06","modified_gmt":"2025-12-04T21:41:06","slug":"how-ofgems-28bn-energy-overhaul","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/how-ofgems-28bn-energy-overhaul\/","title":{"rendered":"How Ofgem\u2019s \u00a328bn Energy Overhaul Could Add \u00a3108 to Your Bill by 2031"},"content":{"rendered":"\n

The investment, set to be spread over five years<\/strong>, is designed to boost the resilience and efficiency of the UK\u2019s energy system. However, while Ofgem <\/strong>insists this funding is necessary to secure a stable, low-carbon future, critics warn that consumers will bear the brunt of the cost. <\/p>\n\n\n\n

The Cost of Securing Britain\u2019s Energy Future<\/h2>\n\n\n\n

The \u00a328 billion investment plan, approved by Ofgem<\/strong>, will be channelled into upgrading both the gas transmission and distribution networks and the UK\u2019s high-voltage electricity grid. According to Ofgem, the cost of these improvements will be reflected in household energy bills, with an increase of \u00a3108 <\/strong>expected by 2031.<\/p>\n\n\n\n

Ofgem’s chief executive, Jonathan Brearley<\/strong>, explained that the additional investment is essential for ensuring the UK\u2019s energy networks remain \u201camong the safest, most secure and resilient in the world<\/em>.\u201d The bulk of the investment will be directed towards gas networks (\u00a317.8 billion) while \u00a310.3 billion will be used to strengthen the electricity transmission system.<\/p>\n\n\n\n

This upgrade is part of the UK’s transition towards renewable energy sources, reducing reliance on imported fossil fuels and ensuring energy security in the long term. The investment is expected to help the UK weather energy price shocks, such as those experienced during the 2022 energy crisis<\/strong>, caused in part by the Russian invasion of Ukraine. However, the immediate effect on household bills is clear \u2013 the cost of maintaining the system will be passed on to consumers.<\/p>\n\n\n\n

Balancing Investment with Consumer Protection<\/h2>\n\n\n\n

While the increase in energy <\/a>bills is inevitable, Ofgem insists that the long-term benefits of the infrastructure investment will help offset some of the higher costs. According to Ofgem, the new investment will lead to savings of around \u00a380 per household<\/strong>, thanks to increased system efficiencies and a reduction in the reliance on expensive imported gas. As a result, while the average energy bill will rise by \u00a3108, the net impact is expected to be a more modest \u00a330 increase<\/strong>.<\/p>\n\n\n\n

Despite these assurances, concerns have been raised by campaigners who argue that the cost burden will disproportionately affect consumers. Simon Francis<\/strong>, coordinator of the End Fuel Poverty Coalition, said that although the upgrades are essential for future energy security, \u201chouseholds can\u2019t keep footing the bill\u201d while energy companies make significant profits. The coalition has urged the government and regulators to ensure that these investments are scrutinised carefully to guarantee value for money.<\/p>\n\n\n\n

Moreover, the UK government is aiming to alleviate some of the financial strain on households by cutting \u00a3150 off bills next April, as announced in the latest budget. Chancellor Rachel Reeves has also promised to eliminate the Energy Company Obligation <\/strong>(ECO<\/a>) scheme, which currently adds about \u00a31.7 billion<\/strong> annually to household energy bills.<\/p>\n\n\n\n

The investment plan is also a crucial step in the UK’s transition to a greener, more sustainable energy system. Ofgem has stressed that the upgrades are vital for making the grid more adaptable to renewable energy sources, such as offshore wind power, which currently faces constraints due to the outdated grid. By investing in the necessary infrastructure now, the UK will be better positioned to integrate renewable energy at scale, reducing long-term reliance on fossil fuels. For households struggling with rising energy costs, government schemes like the Winter Fuel Payment and Cold Weather Payment are available to offer additional support. <\/p>\n","protected":false},"excerpt":{"rendered":"

Millions of British households will see their energy bills increase by \u00a3108 by 2031 as the UK energy regulator, Ofgem, has given the go-ahead to a \u00a328 billion investment plan aimed at modernising the nation’s gas and electricity networks. The move will ensure that the UK’s energy infrastructure is fit for the future, but will also add to the growing financial pressure on households already grappling with rising costs of living.<\/p>\n","protected":false},"author":10,"featured_media":115656,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-115654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/115654","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=115654"}],"version-history":[{"count":1,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/115654\/revisions"}],"predecessor-version":[{"id":115655,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/115654\/revisions\/115655"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/115656"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=115654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=115654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=115654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}