UK energy regulator green-lights transmission network operator budgets for five-year period. Initial budget of GBP 10.3 billion ($13.7 billion) approved with an upper-bound estimate of GBP 70 billion transmission investment by 2031. At least GBP 44 billion of transmission spend has already been committed, according to the regulator.
Matthew Lynas
Ofgem has approved budgets for a multi-billion-pound investment in Great Britain’s electricity and gas grids, as part of the next revenue framework for transmission network operators (TNO). The regulator forecasts that spending on transmission upgrades between April 1, 2026, and March 31, 2031, could reach GBP 70 billion.
Great Britain’s transmission network is owned by three private companies that are regulated to ensure monopoly companies deliver value to consumers – meaning Ofgem is tasked with ensuring spending on grid upgrades does not unfairly impact households and businesses.
The regulator has approved a five-year GBP 28 billion ($37.4 billion) investment budget for gas and electricity network upgrades, comprising an initial GBP 10.3 billion investment in the electricity transmission network and GBP 17.8 billion for gas networks.
There are mechanisms in Ofgem’s framework to increase the budget for transmission upgrades as needed. This process involves transmission companies bringing Ofgem project engineering specifications and cost estimates for t