Energy bills to rise after Ofgem backs £24bn grid investment

Energy companies have been given the green light to spend nearly £24bn on Great Britain's electricity grid, in a move that will further increase household bills.

- Julia Kollewe

In its draft verdict on price controls for energy network companies, the energy watchdog, Ofgem, approved more than £15bn to be spent on gas transmission and distribution networks in the five years to 2031.

A further £8.9bn will be invested in the nation's high-voltage electricity network - the biggest expansion of the grid since the 1960s - with a further £1.3bn earmarked on top of that.

The funding will help complete 80 big energy infrastructure projects by 2030 amid a push by the government to boost the UK's renewables sector and improve energy security.

However, to cover the cost of the investment, household bills will rise by £104 by 2031 - £30 for gas networks and £74 for the electricity grid. This means an extra £24 a year on bills, which remain higher than before the energy crisis started in 2021.