Ofgem, the Office of Gas and Electricity Markets, and the energy regulator for Great Britain, has published its priorities for the next five years and beyond. The plan sets out a major programme of work designed to strengthen the stability, security, and resilience of the country’s energy networks, particularly through significant investment in the mains gas network and the electricity transmission network. This blog will breakdown Ofgem’s five-year plan and what it means for the UK’s energy networks
For households and businesses across the UK, energy prices have been a major worry in recent years. Russia’s invasion of Ukraine caused global energy prices to soar to unprecedented levels, resulting in volatile and unpredictable bills for millions. Ofgem’s new five-year plan is intended to help protect consumers from similar shocks in the future and support the transition to a more secure, modern, and reliable energy system.
And although Ofgem doesn’t regulate the LPG market, these changes will still shape the broader energy environment that off-grid homes and businesses operate within. in this blog, we’re going to take a look at what these developments could mean for the many off-grid consumers.
Investing in the future
Ofgem has given the green light to a massive investment package of £28bn aimed at upgrading the UK’s gas and electricity networks, one of the most significant commitments of its kind in decades. This investment is a crucial step towards building a stronger and more resilient energy infrastructure that can meet growing demand and support the UK’s shift to greener energy.
Strengthening the gas network
Of this total investment, £17.8bn will be dedicated to maintaining and modernising Britain’s gas network. This includes essential work such as replacing ageing gas pipes and strengthening cyber security measures to ensure the network remains safe, reliable, and ready to meet future demands.
Upgrading the electricity transmission network
A further £10.3 billion will be invested in strengthening the electricity transmission network. These improvements are designed to boost reliability, expand capacity, and support the ongoing electrification of the economy, helping households, businesses, and industry to thrive.
By investing in both gas and electricity infrastructure, Ofgem is setting the stage for a more secure, flexible, and future-proof energy system that can drive economic growth and meet the challenges of a rapidly changing energy landscape.
What this means for consumers
As part of the five-year plan and the £28bn investment in the UK’s energy networks, network charges on household energy bills are expected to rise. By 2031, Ofgem estimates this could add around £108 to consumers bills.
However, there is some good news. Speaking on the BBC this morning, CEO Jonathon Brierley explained that much of this increase will be balanced out by greater efficiencies across the energy system. These improvements are expected to reduce other parts of the bill by roughly £80, meaning that the net impact for consumers would be just around £30 – a relatively small price to pay for a stronger, more reliable energy network.
While no increase is welcome, Ofgem has stressed that investing now is the most cost-effective way to secure the UK’s energy future and avoid the much higher costs associated with delaying infrastructure upgrades.
This investment isn’t just about costs; it’s about creating a future-proof energy system that keeps lights on, homes warm, and businesses running smoothly, while supporting the UK’s transition to a greener and more electrified economy.
Stronger protections and better value for billpayers
Ofgem has also built in strict consumer protections to ensure consumers get value for money. Over the past year, the regulator has challenged and rigorously reviewed spending proposals from network companies, pushing them to justify the need for investment and demonstrate efficiency. This scrutiny has already delivered £4.5bn in savings compared with initial proposals.
Funding will only be released when companies demonstrate it’s genuinely needed, and Ofgem can claw back money if projects fall behind schedule. The regulator emphasises that this is not ‘investment at any price’ and has committed to holding companies accountable for delivery, timelines, and budget.
Why act now? Avoiding future price shocks
A major driver behind the plan is the need to improve the UK’s resilience against global energy volatility. Investing in the network today will help reduce the UK’s reliance on imported gas and avoid the kind of price shocks seen in 2022.
Expanding the electricity grid alone is expected to cut bills by around £50 by 2031, by reducing constraint costs and improving the ability to flow more energy around the country efficiently.
These upgrades will be essential in enabling more renewable power, supporting new industrial customers, and powering millions of homes and cleaner, domestic energy.
What else is happening in the energy landscape
Many households had been hoping for some relief this January, with earlier forecasts suggesting the energy price cap might fall. However, this hasn’t been the case.
Ofgem has instead announced a small increase to the price cap. As a result, the average household bill is now expected to be around £1,758 per year for energy. As always, this figure is based on typical energy consumption, and the actual amount each household pays will depend on how much energy they consume.
There is some positive news, however. In the Government’s Autumn Budget 2025, it was announced that millions of households should see their energy bills fall by around £150 a year. This reduction will come from the removal of several levies that are currently added to energy bills, shifting some of these costs away from consumers. While it won’t cancel out every increase, it’s a welcome step that should ease the overall pressure on households as we move into early 2026.
Looking ahead
Overall, Ofgem’s plan marks a significant step towards creating a more stable, resilient, and future-ready energy system for the UK.
While some short-term cost increases are expected, the long-term benefits such as greater security, improved reliability, and protection from price volatility, should provide reassurance for households and businesses alike.
For off-grid consumers, there’s the added reassurance that the government has recently launched a new consultation that formally recognises renewable fuels, including renewable gases such as bioLPG and rDME, as part of the UK’s future heating mix. This recognition is an encouraging step towards a lower-carbon future for rural and off-grid homes and businesses.
At Northern Energy, we’ll continue to keep you updated about the changes that matter most, helping you stay up to date in a fast-evolving energy landscape.