The º£½ÇÊÓƵ's energy watchdog has sanctioned a monumental £24bn investment to revamp the nation's energy infrastructure, aligning with its commitment to a greener future.
Ofgem's decision aligns with the government's renewed drive for cleaner energy sources, despite concerns over the potential impact on consumer prices, as reported by .
A hefty sum exceeding £15bn is earmarked for enhancing the º£½ÇÊÓƵ's gas transmission and distribution networks, ensuring a "safe and secure" gas supply to both homes and businesses.
An additional £8.9bn is allocated for the most significant expansion of Britain's high-voltage electricity network since the 1960s, with Ofgem announcing a further £1.3bn boost for the grid.
City AM disclosed earlier in the month that the government had conceded, albeit quietly, that adopting low-carbon technologies—crucial for the swift shift to net zero—is costlier compared to traditional fossil fuel-based energy.
This substantial funding marks the initial phase of an ambitious £80bn scheme aimed at enhancing the electricity network nationwide and shielding British households from the erratic nature of global gas markets, which have recently sent energy bills soaring.
Ofgem eying º£½ÇÊÓƵ's energy independence
With an eye towards bolstering the º£½ÇÊÓƵ's energy self-sufficiency, Ofgem is taking action as energy prices climb amidst increasing geopolitical tensions. The aftermath of Russia's incursion into Ukraine in 2022 saw energy costs hit unprecedented levels, pushing the average household energy bill close to £4,000 annually before government interventions, thereby exacerbating the cost-of-living crisis.
The recent surge in oil prices due to escalating conflict in the Middle East has further fuelled worries about potential impacts on energy prices.
Ofgem has announced that investment in the electric grid will quadruple current spending levels, enabling the completion of 80 transmission projects and all related works within a five-year timeframe.
This programme is expected to substantially boost the grid's capacity through the erection of new power lines, substations, and the implementation of other technologies.
On Monday, the government reiterated its commitment to green initiatives as the City minister confirmed plans to promote sustainable finance in the Treasury's forthcoming financial services strategy.
