U.K. Approves $37 Billion in Funding for Energy Grid

By Joshua Kirby

U.K. energy-markets regulator Ofgem approved 28 billion pounds ($37.39 billion) in funding for the country's grid via a price-control framework, a move it says will lessen volatility in customers' power bills.

"Energy network companies have been given the green light for multibillion-pound funding to strengthen the stability, security and resilience of our energy networks," Ofgem said Thursday.

Close to 18 billion pounds of the funding will go to maintaining Britain's gas networks, Ofgem said.

"This essential investment ensures a safe and reliable energy system for years to come," the regulator said.

The remaining roughly 10 billion pounds will go to strengthening the electricity transmission network, Ofgem said.

Expansion of the grid will reduce household energy bills, Ofgem said, pointing to " lower reliance on imported gas and the halting of constraint costs ensuring power flows efficiently  from where it's generated to where it's needed, even at peak demand."

Energy-infrastructure operator National Grid welcomed the announcement.

"We welcome Ofgem's recognition of the need for significant investment into the electricity transmission sector to continue to deliver world-leading reliability whilst nearly doubling the amount of power we can transfer around the country," National Grid said.

Energy company SSE said the investment would help reduce reliance on imported energy. The move will "remove grid bottlenecks and strengthen energy security, as well as acting as a major catalyst for economic growth, jobs and supply-chain investments across the U.K.," SSE said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

December 04, 2025 02:53 ET (07:53 GMT)