Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Ofgem earmarks £24.2bn to upgrade grid

Energy regulator Ofgem has today announced £24.2bn will be spent upgrading the country’s gas and electricity networks over the next eight years.

But the proposed spending levels in the next spending period – 1 April 2013 to 2021 – is £7bn less than the network companies had originally asked for.

The majority of the proposed investment, around £15bn, would include the upgrade and renewal of the high voltage electricity network in England and Wales and the high pressure gas networks across Britain. A further £8.7bn will be spent upgrading Britain’s low pressure gas networks.

Ofgem has included an additional £500M to allow transmission companies to reduce impact of the upgrades in areas of natural beauty, and a further £470M to put new cables underground.

The spending also includes the building of a sub-sea link to connect Scotland with England and Wales.

“Ofgem’s new and innovative price control - RIIO [Revenue= Incentives+Innovation+Outputs] - delivers a sound regulatory environment that protects consumers by attracting the energy infrastructure investment that Britain needs at a fair price,” said Ofgem chairman Lord Mogg.

“This provides a framework of strong incentives and penalties to stimulate the innovative and efficient operations of Britain’s energy companies.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.