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Ofgem confirms £28 billion grid investment

Ofgem has confirmed a £28 billion network investment package, with £17.8 billion for gas reinforcement and £10.3 billion for electricity transmission across 80 projects over five years.

A newspaper on a kitchen table beside a model of rules and regulation

Ofgem has confirmed a £28 billion investment package to upgrade and expand the country's energy networks, announced on 4 December 2025. The plan allocates £17.8 billion to reinforce the gas network and £10.3 billion for electricity transmission upgrades1.

The programme will fund 80 transmission projects over the next five years, covering new power lines, substations and advanced technologies. The upgrades are expected to reduce renewable energy curtailment, improve connection times for new projects and prepare the grid for rising demand driven by electrification and economic growth1.

On cost to households, the two accounts differ in scope. The Energy Storage Association reports that the investment will add around £108 to household bills by 2031, with anticipated system savings of £80 reducing the net impact to approximately £301. A separate industry blog states that in December 2025 Ofgem approved £28 billion of upfront network funding for the five years from April 2026, including £10.3 billion for electricity transmission across 80 projects, within a pipeline it expects to reach around £90 billion by 20312. That second account does not give a per-household figure.

The same announcement period brought GB Energy's five-year strategic plan, setting out three core priorities that will shape its work through to 20301:

PriorityStated focus
GBE LocalCommunity-owned and local energy projects, so residents and public services benefit from infrastructure they host
Onshore EnergyPublic land, system flexibility and grid stability
Offshore EnergyGrowth in Scotland and the Celtic Sea through deeper-water offshore wind

A key component of the strategy is a focus on strengthening UK supply chains, relieving constraints, supporting industrial growth and contributing to a clean-power manufacturing base1.

"With this strategic investment in the electricity grid, we must also focus on energy storage projects, both short and long duration, to take pressure off the grid and ensure the network provides secure energy for the 21st century."
Energy Storage Association,1

Why it matters for households

Network investment of this kind is recovered through the charges that sit inside every electricity and gas bill, so the £108 figure and the £30 net figure describe the same programme at different points: gross cost against cost after expected system savings1. The timing matters for anyone weighing a long-duration storage project or a home battery, because the value of storing cheap power and using it later depends partly on how network costs move.

For a household, the practical link runs through the electricity transmission network and the local wires that connect a property to it. Reinforcement of the gas network and transmission upgrades are intended to reduce curtailment and shorten connection times, which affects how quickly new generation and storage can come online1. The charges on your bill are set under the Ofgem price control process, and the regulator's role in approving this spending is set out in its regulation and policy remit.

The GB Energy priorities point towards community-owned generation and public-land projects, which could change who owns and benefits from local infrastructure1. No detail has been reported on how individual households would access those benefits, or on which specific projects will be built first.

What happens next

The funding covers the five years from April 20262. The 80 transmission projects are to be delivered over the next five years1. GB Energy's plan sets priorities through to 20301. No further dates for individual project approvals have been reported.

Sources2 cited
  1. Major Boost for UK Clean Energy as Ofgem Confirms £28bn Investment and GB Energy Unveils 5-Year Strategy - Energy Storage Association, esa-uk.org
  2. 9 Mistakes to Avoid When Installing Solar and Battery, blog.spiritenergy.co.uk