What new requirement has Ofgem imposed on UK utilities before they can proceed with physical grid upgrades?

Ofgem requires utilities to first utilize flexibility tools—such as smart electric-vehicle charging and battery storage—to maximize existing grid capacity and control demand, and to prove the strategic need for physical upgrades before approval is granted.

Why is Ofgem taking a tougher approach to approving grid investments during the 2028–33 period?

Ofgem is adopting a stricter stance to avoid 'speculative or premature' spending amid uncertainty over the pace, scale, and location of future electricity demand—driven by renewables, EV infrastructure, and data centers—and to prevent unnecessary costs from being passed onto household bills through network investment allowances.

UK Must Harness Flexible Grids Before Upgrades to Curb Bills

May 21, 2026

UK regulator Ofgem mandates utilities use smart flexibility tools before approving grid investments to curb customer bills. The new framework addresses bottlenecks from renewables and EV charging while capping speculative spending.

bloomberg

2026-05-21

UK Must Harness Flexible Grids Before Upgrades to Curb Bills

UK Must Harness Flexible Grids Before Upgrades to Curb Bills

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