The National Infrastructure Commission published a report on electricity distribution networks in February 2025, setting out the investment it judges the UK will need in those networks by 2050 to deliver flexibility1. The figure it gives is £37 to 50 billion1.
The report is cited in a June 2025 publication by BEAMA, the trade body for UK manufacturers of energy smart appliances, which describes the Commission's finding as adding weight to the case for flexible energy1. BEAMA's own figures put the sector's UK turnover at £14 billion, its exports at £5 billion worldwide, and its employment at 90,000 people in the UK1. It states that electricity demand could grow by 70% by 2035, resulting in a tenfold increase in product demand for some sectors, and that Net Zero could require private investment of up to £50 billion per year by 20301.
On flexibility specifically, BEAMA says that for the Climate Change Committee's seventh carbon budget to be met, the flexibility requirement from all thermal energy storage systems has to be 9.3GW by 2030, while the combined flexibility potential of all such systems available by 2030 is 10GW1. It also cites the Clean Power 2030 pathway as assuming demand flexibility of 4GW from storage heating currently1. BEAMA states that the average household with flexible technologies such as electric heating systems, a battery or an electric vehicle could save £115 a year on its energy bills, and that just 5% of homes currently use low carbon heating1.
The report's own text has not been reported here beyond the investment range and the flexibility purpose BEAMA attributes to it. The Commission's breakdown of that £37 to 50 billion by network area, by period, or between reinforcement and smart solutions has not been reported in the material available.
Why it matters for households
Electricity distribution networks are the wires and substations that carry electricity from the transmission grid to individual streets and homes, and they are the part of the system a household connects to. The Commission's investment figure is a measure of how much that local infrastructure is expected to change if flexibility is to be delivered at scale1.
Flexibility, as BEAMA defines it, is the ability to shift the time or location of energy consumption or generation, and a smart and flexible system uses smart technologies to balance supply and demand and manage constraints on the network1. For a household, that is the mechanism behind using electricity at cheaper times, and BEAMA puts the potential saving for a home with flexible technologies at £115 a year1. It also frames a more flexible grid as a route to greater energy security, with fewer disruptions and a more reliable supply1.
The gap BEAMA identifies is on the home side: 5% of homes currently use low carbon heating, and it says consumers lack clear guidance on what technology suits their home or lifestyle, with few incentives for clean heat options beyond heat pumps1. How the distribution investment is recovered from bills is not set out in the material available.
What happens next
BEAMA states that the upcoming Low Carbon Flexibility Roadmap is an opportunity to tie the strands of government policy together, and that its Smart Buildings Group can contribute to a standing industry-government forum1. No date for the roadmap is given in the material available.