National Gas owns and operates Britain’s gas transmission network, and will receive funding through the Ofgem plan.
Its chief executive Jon Butterworth welcomed the investment, saying it confirmed “the critical role that the gas transmission system plays in Britain’s energy security now and for decades to come”.
He said the company would undertake a detailed review of the decision in the coming weeks to ensure that it also “supports the country’s clean energy ambitions”.
Lawrence Slade, chief executive of the Energy Networks Association, said Ofgem’s announcement was “a significant point in our plans for delivering an electricity transmission network that will supply the clean, more affordable and secure energy the country needs for future growth”.
Energy UK chief executive Dhara Vyas said the increased investment was critical, but the added cost for businesses and households needed to be considered by the government so that it was funded “in the fairest way possible” and with certainty around future costs.
Greenpeace UK’s senior climate adviser, Charlie Kronick, said the energy grid was “no longer fit for purpose” and needed immediate, vital upgrades. But he added there must be “robust safeguards and strong regulation” to protect bill payers and provide value for money.
Simon Francis from campaign group End Fuel Poverty Coalition echoed the concerns from Greenpeace, saying network and transmission companies should not be handed a blank cheque and should come with “proper scrutiny”.
