Ofgem has confirmed a $40bn investment programme into the energy infrastructure to reduce the impact of the networks on the environment and help meet he net-zero emissions target by 2050.

Having finalised its price control for 2021-26 (RIIO-2) which regulates infrastructure funding from consumers’ bills via five-year price controls, Ofgem unveiled a spending package of £30bn upfront funding for the companies with an extra provisional £10bn funding available for future green energy projects such as connecting offshore wind farms to the Grid.

However, there is no limit on the additional funding green that could be provided, and the entire programme has been secured against a guarantee of greater efficiency and lowering returns to shareholders by 40 per cent to bring them in line with current market levels.

Ofgem’s chief executive Jonathan Brearley said: “Our £40 billion package massively boosts clean energy investment. This will ensure that our network companies can deliver on the climate change ambitions laid out by the Prime Minister last week, whilst maintaining world-leading levels of reliability.”

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