Comment on Ofgem confirming £90bn in RIIO-3 network investments by 2031

“Upgrading our electricity grid after decades of under-investment, like many would say we've seen in schools and hospitals, is important for shielding households from any future energy crises. Ensuring more British wind and solar can come online will boost the UK’s energy independence and reduce the risk of bill shocks by making the UK less dependent on gas from abroad. North Sea gas output will inevitably continue to decline so there is a burning platform to upgrade.”

Notes to editors:
 

1. https://www.ofgem.gov.uk/press-release/ofgem-unlocks-ps28-billion-investment-maintain-safe-secure-and-resilient-energy-grid-and-upgrade-and-expand-capacity-meet-growing-demands

2. Ofgem has confirmed that 'most of the funding (£17.8 billion) announced today will go towards maintaining Britain’s gas networks', while the 'remaining initial investment (£10.3 billion) will strengthen our electricity transmission network, improve reliability and expand capacity to support the electrification of the economy and drive growth.'

3. The initial £28bn investment is expected to rise to £90bn by 2031. In total, £108 will be added to bills by 2031 to fund the investment; £48 for gas and £60 for electricity. However, it is expected to deliver significant savings of around £80 compared to not expanding the grid, with £50 saved by electricity grid expansion alone, meaning a net increase of around £30 or less than £3 per month in 2031. Ofgem also confirmed that 'investment for ongoing operations, asset replacement and maintenance filters' will add more to bills despite accounting for a smaller proportion of the overall £90 billion investment.

For more information or for interview requests:

Jess Ralston, Head of Energy, ECIU, Tel: 07972 548 503, email: jess.ralston@eciu.net