UK government finalises electricity network guidance: effective 17 November 2026
The UK government has concluded its consultation on draft strategic policy guidance for electricity networks growth1, issued by the Department for Energy Security and Net Zero (DESNZ). This revised guidance is set to come into effect on 17 November 2026. The initiative aims to support the expansion of electricity networks and boost domestic production in supply chains, recognising a "strong, time-critical opportunity" to enhance domestic production in these areas.
This new guidance highlights the importance of a robust and modern energy infrastructure for every home. Fuse Energy is committed to building a future with abundant, clean energy, and we believe that starts with a strong network. Click here to switch to Fuse Energy today and join us in shaping a smarter energy future.
Enter your address to get a quote and see how much you could save
Understanding the latest UK electricity network policy
The recently concluded consultation on draft strategic policy guidance for electricity networks growth highlights the government's commitment to modernising and expanding the UK's energy infrastructure. This guidance is crucial for ensuring that the electricity network can support the nation's ambitious energy targets.
The department for energy security and net zero's role
The DESNZ is responsible for setting the overarching policy framework and strategic direction for the UK's energy system. This includes defining net zero targets, energy security objectives, and industrial strategy priorities. The department issued the draft guidance and led the consultation process, seeking feedback from a wide array of stakeholders on proposed social and environmental considerations for network expansion.
Key objectives of the strategic guidance
The primary objective of this guidance is to ensure that Ofgem, through its governing body the Gas and Electricity Markets Authority (GEMA), can effectively support the growth of electricity networks. This support must align with Ofgem's existing objectives, duties, and functions. The government emphasises that there is a strong, time-critical opportunity to enhance domestic production in networks supply chains. This move aims to strengthen supply chain resilience and improve energy security, helping to capture the economic benefits of the energy transition through investment, skilled jobs, and industrial growth across the UK.
Ofgem and GEMA's mandate for network expansion
Ofgem, the Office of Gas and Electricity Markets, is the independent energy regulator for Great Britain, responsible for ensuring energy markets work fairly for consumers. Its governing body is the GEMA, which sets Ofgem's strategy, oversees regulation, and decides policy priorities.
Integrating social and environmental guidance
The new guidance specifically directs GEMA on how to integrate social and environmental considerations into its regulation of electricity network expansion. This includes promoting growth that brings social and environmental benefits, such as investment, skilled jobs, and industrial growth across the UK. The government expects GEMA to consider how its strategic planning aligns with promoting growth through electricity networks across the UK, and where changes can be made to support this growth within its existing parameters.
What is the GEMA?
GEMA is the governing body for Ofgem, the UK's energy regulator. It is responsible for setting Ofgem's strategy, overseeing its regulation of the energy industry, and deciding policy priorities. GEMA ensures that Ofgem's actions align with government objectives while protecting consumer interests and promoting competition in the gas and electricity markets.
Supporting growth consistent with regulatory duties
Ofgem's principal objective is to protect consumers' interests, which includes promoting the security of the UK's energy supply, ensuring sustainability, and supervising market competition. The new guidance aims to support Ofgem in enabling network growth in a manner consistent with these existing duties. This involves encouraging procurement approaches that strengthen domestic capability, improve energy security, and enhance resilience in supply chains and skills, all while ensuring value for money for billpayers.
Consultation outcomes and stakeholder feedback
The consultation process provided a platform for various stakeholders to contribute to the shaping of the final guidance. This engagement is vital for developing policies that are robust and reflective of industry needs and public interest.
Responses from network owners and trade associations
The consultation, which ran from 8 July to 19 August 2026, received 30 responses from a diverse range of stakeholders. These included network owners (both transmission and distribution), suppliers, manufacturers, trade associations, Ofgem itself, local government organisations, and think tanks. The government noted that the majority of responses were supportive of the overall proposal.
The path to revised guidance implementation
Following the consultation, all feedback, evidence, and policy positions were considered. Amendments to the guidance reflect these considerations, with details outlined in the government's response. The government published its response to the consultation on 14 September 2026, and the revised guidance is set to come into effect on 17 November 2026. This formalises the government's strategic direction for electricity network growth, providing a clear framework for Ofgem and the wider energy sector.
Driving energy security and net zero targets
The expansion and modernisation of the UK's electricity network are fundamental to achieving both energy security and net zero ambitions. The current grid, largely built between the 1950s and 1970s for fossil fuel stations, is not optimally matched to today's renewable energy production.
The critical role of electricity infrastructure development
Upgrading the electricity network is central to the clean energy transition, supporting the UK's clean power, affordability, and industrial growth ambitions. To meet future electricity demand, Great Britain will need approximately four times as much new electricity transmission network between 2024 and 2030 as was built since 1990. This expansion is essential for integrating intermittent renewable energy sources efficiently and ensuring a robust, flexible grid.
Boosting domestic production in supply chains
The government views the opportunity to boost domestic production in networks supply chains as particularly significant and time-critical. Expanding UK supply chain capability for network equipment and delivery services can strengthen resilience and improve energy security. This also helps capture the economic benefits of the energy transition through investment, skilled jobs, and industrial growth across the UK. The government expects GEMA to consider how its regulation can enable procurement approaches that strengthen domestic capability and improve energy security.
Implications for the future UK energy landscape
The new policy guidance signals a proactive approach to shaping the UK's energy future, with significant implications for grid modernisation, renewable energy integration, and investment.
Modernising the National Grid and renewable integration
The reforms aim to accelerate the delivery of critical electricity network infrastructure, enabling the grid to expand at the pace required for the UK's clean power and net zero commitments. This includes simplifying consenting regimes and removing planning barriers to cut delays in infrastructure projects. A modernised grid is crucial for accommodating the increasing capacity of renewable energy and improving overall resilience.
The UK government's DESNZ states that the electricity network is central to the clean energy transition, underpinning clean power, affordability, and industrial growth ambitions across all sectors.
Investment and innovation in electricity distribution networks
The guidance encourages investment and innovation across the electricity distribution and transmission networks. Ofgem's approach to network regulation incentivises companies to deliver efficiently and on time, while also improving supply chain resilience and strengthening manufacturer confidence. This focus on growth extends to the procurement of critical network equipment and components, with an emphasis on strengthening domestic capability and taking social value into account. For Fuse, this policy direction aligns with our vision of abundant energy, requiring a robust and expanded electricity network. Our approach to vertically integrating and rebuilding the energy system from scratch directly addresses the need for modernised infrastructure and efficient supply chains highlighted by this UK electricity network policy.
Managing your home's energy should be clear and easy. Fuse Energy focuses on straightforward pricing, so you can see exactly what you're paying without unnecessary complexity. We're building a future where energy is abundant and accessible for everyone. Click here to switch to Fuse Energy today and be part of the energy revolution. You can also find out more about our mission to make energy abundant by clicking here.
References
Disclaimer
For the avoidance of doubt, this article is provided for informational purposes only and is not intended to constitute legal or financial advice. The author and/or Fuse Energy shall not be responsible for any losses arising out of any reliance on the information contained herein.