Overview
- The final decision lifts a July draft to £28 billion, with around £17.8 billion for gas networks and £10.3 billion for high‑voltage electricity transmission.
- Ofgem frames the package as the first tranche of an estimated £90 billion of network investment by 2031 to expand capacity and reduce constraint and import costs.
- The government plans a separate £150 average bill cut from April, and Energy Secretary Ed Miliband has urged suppliers to pass it to customers on fixed tariffs.
- Consumer groups warn of higher household costs and question allowed returns, while Ofgem says funds will be released only when needed and clawed back if unused.
- Allowed returns for network companies have been increased to roughly 5.7%–6.12% and about 80 projects, including new lines and substations, are slated to connect more renewables.