The ‘great grid upgrade’ is off track – ministers should spell out the risks for bills | Nils Pratley
A National Audit Office (NAO) report has found that the £70bn "great grid upgrade" – the programme to rewire Britain's electricity transmission network to enable clean power by 2030 – is running behind schedule and over budget, with the watchdog demanding far greater transparency from the bodies overseeing it. Columnist Nils Pratley argues that the Department for Energy Security and Net Zero, the National Energy System Operator and Ofgem all publish fragmented data but none gives a clear overall picture, and that ministers, including Andy Burnham, should be upfront about the risk of higher consumer bills before the problem worsens.
Of 88 originally identified projects, 12 are complete and 12 have been folded into other work, but of the 56 deemed essential for the 2030 clean power target, the NAO says 50 are forecast to be delivered late, one by six to seven years. Delays partly stem from land rights, planning consents, legal challenges, Ofgem signoff procedures and global competition for equipment, with some components reportedly up to five times pricier than in 2022. Missing the "optimal" delivery dates risks pushing up "constraint cost" payments to windfarms and gas generators for balancing supply, which already topped £29m in a single day this week and could reach £7.8bn a year by 2030 under Neso's worst-case forecast, all ultimately funded through bills.
In short
- NAO says £70bn UK grid upgrade is late and over budget
- 50 of 56 essential projects forecast to miss their target dates
- Delays could push constraint costs and consumer bills sharply higher
Explained simply
Britain’s electricity transmission network carries power from where it is generated to homes and businesses. The planned upgrade is intended to connect more clean electricity, including offshore wind, and support the government’s 2030 clean power target.
The main bodies involved are the Department for Energy Security and Net Zero, the National Energy System Operator, which plans how the system works, and Ofgem, which regulates energy networks. The National Audit Office independently examines how public programmes are managed and reports on their progress.
When the network cannot carry electricity to where it is needed, generators may be paid to reduce or increase their output so supply stays balanced. These payments are funded through energy bills, so the pace and cost of the upgrade could affect what consumers pay.
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