The Office of Gas & Electricity Markets (Ofgem) has handed down its final determinations鈥痮f the鈥痗ost control period鈥痜rom 1st April 2026 to 31st March, known as鈥疪IIO-3
RIIO (Revenues = Incentives + Innovation + Outputs) is Ofgem鈥檚 price control framework to ensure that the monopoly companies operating the gas and electricity networks have sufficient revenue to run and invest in networks that efficiently deliver what customers value.
Ofgem has authorised 拢17.8bn to be spent on maintaining Britain鈥檚 gas networks and 拢10.3bn on strengthening the electricity transmission network.
The鈥痑pproved鈥痠nvestment is expected to鈥痜und鈥�80 transmission projects and associated works鈥痭ationwide鈥痮ver the next鈥痜ive years.
Overall鈥痶he net increase in bills to cover all costs by 2031 will be around鈥�30鈥痑 year, according to Ofgem.
Ofgem chief executive Jonathan Brearley said: 鈥淭he鈥痜unding鈥痑nnounced鈥痶oday will keep Britain鈥檚 energy network among the safest, most鈥痵ecure鈥痑nd鈥痳esilient鈥痠n the world.鈥疶he鈥痠nvestment鈥痺ill鈥痵upport the鈥痶ransition to new forms of energy and support new industrial customers to鈥痟elp drive economic growth鈥痑nd鈥痠nsulate鈥痷s from鈥痸olatile gas prices.
鈥淏ut this is not investment at any price.鈥疎very pound must deliver value for consumers.鈥疧fgem will鈥痟old network companies accountable for delivering on time and on budget,鈥痑nd we make鈥痭o apologies for the efficiency challenge we're鈥痵etting as鈥痶he industry scales up investment.鈥疻e've鈥痓uilt strong鈥痗onsumer鈥痯rotections鈥痠nto鈥痶hese contracts, meaning funds will only be released when needed and clawed back鈥痠f not鈥痷sed.鈥疕ouseholds and businesses must get value for money, and we will ensure they do.鈥澛�
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