Household energy bills across the UK are set to increase by an average of £24 a year from April 2026, as Ofgem gives provisional approval to a major five-year infrastructure programme aimed at future-proofing Britain’s power and gas networks for the green energy transition.
The energy regulator has published its draft determination, outlining how much network operators will be allowed to charge energy suppliers between 1 April 2026 and 31 March 2031.
The move is expected to push network charges – which currently make up around 22% of a typical energy bill – up significantly.
The proposed increase in network costs comes as part of a £24 billion investment plan, aimed at upgrading over 2,700 miles of overhead power lines and preparing the energy grid to accommodate a surge in renewable and nuclear power, all in support of the UK’s net zero targets.
The draft determination, now open for consultation, includes 80 large-scale projects intended to enhance resilience and reliability in Britain’s energy supply.
Ofgem’s chief executive, Jonathan Brearley, described the initiative as a “long-term insurance policy” against global energy price shocks, particularly those driven by volatile international gas markets.
“Doing nothing will ultimately cost consumers more,” Brearley warned. “This record investment is essential to building a resilient, homegrown energy system that protects customers and strengthens national energy security.”
If approved in its current form, the rise in network costs will coincide with other annual increases in essential household expenses typically seen every April, adding pressure to already stretched UK households.
The announcement follows some relief for consumers, as the energy price cap falls from £1,849 to £1,720 for the July to September period – the first drop in over a year.
The decrease reflects easing wholesale energy costs, though experts warn that recent geopolitical instability, such as in the Middle East, could trigger fresh volatility.
Cornwall Insight, a leading industry forecaster, predicts a slight further drop in energy bills this October when the cap is next adjusted. However, bills remain 10% higher than the same period in 2024, despite being 28% lower than the peak of the energy crisis.
Importantly, the price cap does not fix the total amount consumers pay – actual bills still depend on individual energy usage.
Ofgem continues to urge households to compare fixed-rate deals, which may offer better protection and potential savings compared with the fluctuating cap.
With the regulator focused on delivering a greener and more resilient grid, the planned overhaul of Britain’s energy networks is being presented as a crucial step towards long-term stability and affordability.
