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Britain's grid upgrade delays could raise costs, NAO report says
The National Audit Office said constraint costs have already added nearly £2 billion a year and could reach £7.8 billion by 2030.
A new National Audit Office report warns that delays in upgrading aging electricity infrastructure threaten to significantly increase consumer bills, with planned grid upgrades testing systems not designed for current activity levels.
Successive governments failed to expand the grid alongside renewable generation, adding almost £2 billion annually to bills; the National Energy System Operator intervenes by paying wind farms to turn off and gas plants to turn on to balance supply.
Of the 80 projects deemed necessary by NESO in its 2024 Clean Power advice, only 64 are ongoing with others missing target dates. Without preventative action, constraint payments could increase to £7.8 billion by 2030, the NAO found.
Ofgem estimates the UK needs £70 billion in grid investment by the early next decade, though network charges may rise by £60 by decade's end, the regulator predicts overall savings of £30 for consumers.
Gareth Davies, Head of the NAO, noted that value for money now depends on project delivery, as while DESNZ, Ofgem, and NESO are improving coordination, insufficient grid capacity could hamper broader economic growth.