A proposed £24 billion investment in the UK’s electricity and gas networks could see average household energy bills up by approximately £104 annually by 2031, as regulators approve the spending needed to deliver on net-zero ambitions.
What’s Changing?
Ofgem has granted consent for a £24 billion infrastructure upgrade programme, including:
- A major £8.9 billion expansion of the high-voltage electricity grid.
- £15 billion for gas network improvements.
Who Pays, and When?
- The cost is expected to add roughly £104 annually to average household dual-fuel bill by 2031.
- Ofgem stresses that this investment will unlock long-term savings, around £24 per household per year. By boosting grid efficiency and reducing reliance on expensive fossil-fuel plants.
Why It Matters
- These enhancements are key to ramping up capacity for renewable energy sources like offshore wind and improving resilience against disruptions in gas supply.
- Ofgem warns that failing to act would result in higher energy costs due to system inefficiencies and more frequent use of expensive backup generation.
Political Context
- Energy regulator actions have cast doubt on political promises to cut bills, and Labour’s pledge to reduce household costs by up to £300 annually now seems less likely.
- Critics, including Conservative shadow ministers, argue that net-zero upgrades are driving up household bills.
What This Means for You
If this impact on bills concerns you, here’s how Energy Advice Helpline can help:
- Explore Support Schemes: Check whether you’re eligible for grants, such as those under the Warm Homes Plan, or help from schemes like the Great British Insulation Scheme. These can offset rising energy costs.
- Boost Home Efficiency: Small changes like adding insulation or upgrading heating can cut energy use significantly. We can guide you through the application and eligibility by clicking the following link: Apply for help here
- Find the Best Tariff: Shop around; fixed-rate deals can protect you from future price increases. Readjusting your tariff could save more than the planned bill rise.
- Smart Use, Big Savings: Use tools like smart meters, boost insulation, lower thermostats by a degree, and switch appliances off when not needed; small habits can make a big difference over time.
If you’re worried about upcoming bills or want to learn more about your energy, the Energy Advice Helpline website has an extensive library of information available to help.
Let us help you navigate this transition to net zero while keeping your bills as affordable as possible.
Need help today? Apply for help below by filling out our quick and easy-to-use form.
