Asked by: Lord Strathcarron (Non-affiliated - Excepted Hereditary)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government why the cost of upgrading the electricity grid is estimated at £60 billion in the report Clean Power 2030, published on 5 November 2024 by the National Energy System Operator, and at £80 billion in the Ofgem press release on 1 July about initial investment in energy security; and whether they will update their costing.
Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)
The £80bn cost estimate in Ofgem’s Draft Determinations for RIIO ET3, which covers 2026/27 to 2030/31, is not exclusively spending required to deliver the transmission network needed to deliver 2030 Clean Power, but also takes into account wider operational costs such as maintenance of existing assets, and includes some spend beyond 2030. Ofgem and NESO regularly review and update their cost estimates for electricity networks.