--- title: "Households face higher bills as grid project costs soar 500pc" type: "News" locale: "en" url: "https://longbridge.com/en/news/293090452.md" description: "Britain's net-zero grid overhaul faces budget overruns of up to 500%, risking higher household energy bills. Ofgem reports significant cost increases for projects like those by SSE, driven by global equipment shortages and delays. Industry experts warn this could mirror the HS2 rail scandal, potentially adding billions to consumer costs. While Ofgem vows to rigorously challenge these expenses, network costs are projected to become a major driver of bill increases through 2030." datetime: "2026-07-18T07:03:22.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293090452.md) - [en](https://longbridge.com/en/news/293090452.md) - [zh-HK](https://longbridge.com/zh-HK/news/293090452.md) generator: "portal-rs" --- # Households face higher bills as grid project costs soar 500pc A net-zero overhaul of Britain’s electricity grid is at risk of becoming “the next HS2” as projects blow their budgets by almost 500pc, leading to higher energy bills for households. Ofgem, the industry watchdog, is facing requests for substantial spending increases to build new power lines after a global equipment shortage triggered delays and higher costs. The extra spending, if approved, will ultimately be footed by households and businesses through their bills and will amount to billions, if not tens of billions, of pounds. Some developers say their total costs are now expected to be as much as 467pc above the original estimates. The extraordinary figures have emerged from a report published by Ofgem that looked at eight projects being built in Scotland by SSE. The average implied cost increase was 283.5pc. Ofgem has agreed to allow SSE to spend more on early construction costs, but said it was yet to decide whether any further increases were reasonable. A senior energy industry source warned that the problem of overspending on grid projects was becoming “endemic” and compared the situation to the disastrous HS2 (High Speed 2) rail scheme, which busted its original budget by more than 200pc. “There’s a very high risk here, frankly, that grid projects are set to become the next HS2,” they said. ## ‘Deeply concerning’ Ofgem has insisted it will “rigorously challenge” all cost rises. But Ed Hezlet, an energy expert at the Onward think tank, said the “deeply concerning” forecasts raised difficult questions about the substantial pipeline of upgrades that were in train across the country. He said: “Supply chains are difficult right now, but cost increases of this magnitude deserve much more attention from the regulator and the Government. “If this inflation spreads into other planned transmission projects, consumers will be paying higher electricity bills for decades.” The projects that reported cost increases to Ofgem were just a small fraction of the total national pipeline. Overall, the Government has said some £80bn-worth of upgrades will be needed to realise Labour’s clean power plans for 2030. But officials have admitted that total spending through to 2050 could reach as much as £240bn as the system is overhauled for net zero. If that figure were increased by the average amount at which SSE’s project costs are rising, it would hit an eye-watering £920bn. Network costs are already set to be the biggest driver of household bill increases between now and 2030. They are set to rise from £207 to £342 per year by the end of this decade, out of a total estimated bill of £1,045 a year, according to the Electricitybills.uk tracker website. An Ofgem spokesperson said: “Ofgem has tough price controls to limit the level of capital spend passed on to consumers. “These figures have not yet been through the final efficiency assessment. Every penny will be rigorously challenged by Ofgem. “Nothing is judged efficient just because a network company forecasts it.” ### Related Stocks - [SSE.UK](https://longbridge.com/en/quote/SSE.UK.md) - [SSEZY.US](https://longbridge.com/en/quote/SSEZY.US.md) ## Related News & Research - [Amentum wins SSEN Transmission cybersecurity role in UK energy grid upgrade frameworks](https://longbridge.com/en/news/297652948.md) - [SSE Updates Market on Share Capital and Voting Rights](https://longbridge.com/en/news/297605689.md) - [21:47 ETDoGo Power Empowers New Power Systems with AI and Grid-Forming Energy Storage](https://longbridge.com/en/news/297450483.md) - [09:13 ETGPC Infrastructure Strengthens Leadership Team and Board to Support Continued Growth](https://longbridge.com/en/news/297192356.md) - [Insider Buying: PayPoint (LON:PAY) Insider Purchases £124 in Stock](https://longbridge.com/en/news/297125781.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**