Around twice as much new energy transmission network infrastructure will be needed by 2030 as was built in the past decade to move electricity from generation sites to consumer distribution networks. Due to current constraints on the network, renewable energy resources are being underutilised at a cost to the taxpayer, as the current network is unable to link supply with demand. These constraints cost the National Energy System Operator £1.37 billion in 2024-25. It predicts these costs could reach £12.7 billion in 2030 if the transmission network is not upgraded.
The Public Accounts Committee (PAC) has previously reported on the Department for Energy Security and Net Zero's efforts (DESNZ) to address net zero, including its report into Carbon Capture and Storage in which it warned the government had not assessed the likely impact of the programme on consumers bills. In 2023, the PAC's report on energy bills support also raised concerns that under the government's scheme, support took too long to reach some of those most in need.
A report from the National Audit Office will (NAO), expected in Autumn 2026, will set out the government’s rationale for the £60 billion cost of upgrades to the transmission network, which Ofgem estimates will add £74 to an average domestic consumer bill by 2031. The report will also examine oversight of the programme, and the steps being taken to improve the speed at which the upgrades are delivered.
Proceeding from the NAO’s report, the PAC will take evidence from witnesses including senior DESNZ officials on subjects including the progress of projects, potential challenges in overall delivery, and the likely cost to consumers.
The Committee will welcome written evidence on these issues in due course.
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