Summary
Ofgem, the energy regulator in the UK, has approved a £28 billion investment to upgrade the UK's energy systems over five years. This plan includes maintenance of gas networks and improving the electricity transmission network. By 2031, households will see an increase of about £108 on energy bills, although the actual cost increase might only be £30 due to cheaper wholesale energy.
Key Facts
- Ofgem approved a £28 billion investment for the UK's energy networks.
- The plan covers a five-year period starting next year.
- £10.3 billion is earmarked for enhancing the electricity transmission network.
- Households will see an additional £108 on their energy bills by 2031.
- The investment aims to reduce reliance on imported gas, making energy cheaper overall.
- Ofgem's plan includes maintenance, expansion, and improving resilience of the energy system.
- Energy network operators have regional monopolies separate from energy suppliers.
- The government plans to remove certain costs, saving households around £150 annually.
