LONDON: Britain’s energy regulator, Ofgem, has announced a sweeping new regulatory framework aimed at revolutionizing local electricity networks as part of the nation’s transition to clean power. The blueprint, unveiled Wednesday, sets the stage for a five-year funding period beginning in 2028 and is expected to drive a historic expansion in the country’s electricity distribution grids.
The framework, known as Electricity Distribution Price Control 3 (ED3), marks a pivotal shift toward a more planned and proactive approach to network investment. Officials say the strategy will provide the essential infrastructure to support the U.K. government’s clean power targets and broader electrification goals.
“This is the most consequential set of price controls we’ve ever introduced, unlocking the biggest grid expansion in a generation,” Steve McMahon, Ofgem’s director for network price controls, said in a statement.
Investment in Clean and Affordable Power
The five-year investment period through 2033 will channel significant funding toward expanding access to clean, reliable, and affordable power across Great Britain’s cities, towns, and communities. Ofgem’s new regulatory approach is also expected to accelerate connections, bolster resilience, and ensure long-term consumer benefits.
According to Ofgem, the ED3 framework aligns with recommendations from the National Infrastructure Commission, shifting toward a more strategic and regionally coordinated system. The plan includes key measures to modernize networks, improve efficiencies, and prepare for growing electricity demands from electric vehicles, heat pumps, and industrial sectors such as artificial intelligence and data centers.
Key Focus Areas
Ofgem’s new framework highlights four priorities for electricity distribution networks:
- Networks for Net Zero: A proactive investment model will ensure infrastructure is prepared for increasing electricity demands as the U.K. moves toward net zero emissions.
- Sustainable and Responsible Businesses: Network operators will be required to minimize environmental impact, improve customer service, and expedite grid connections for renewable energy, housing, and electric vehicle charging points.
- Smarter Networks: The digitalization of Britain’s energy sector will play a crucial role in improving system efficiency. Companies will be incentivized to enhance data sharing and adopt innovative business solutions.
- Resilient Infrastructure: As electricity use expands, networks must be robust enough to withstand threats such as extreme weather and cyber-attacks.
Consumer Impact
The ambitious investment program will be funded through energy bills. McMahon emphasized the importance of balancing the need for increased funding with cost control measures to protect consumers. “We must establish arrangements that attract the necessary investment while ensuring strong accountability for network operators to deliver on time and within budget,” he said.
Building the Grid of the Future
The ED3 framework arrives amid significant shifts in Britain’s energy landscape, including the planned ban on petrol and diesel car sales by 2030 and the increasing electrification of heating. Ofgem estimates the country’s distribution network—spanning approximately 800,000 km—will undergo major expansion to meet rising electricity demand.
Alongside improvements in energy infrastructure, the plan is expected to provide certainty for investors, stimulate innovation, and strengthen national energy security against climate-related disruptions and cyber threats.
With the launch of ED3, electricity distribution network operators will play a central role in shaping a cleaner, more resilient energy future for Britain.