Ofgem has released the final determination for the RIIO-ET3 price control period, confirming record levels of investment across the UK’s transmission network between now and 2031. These decisions will shape energy prices, grid capacity and long term infrastructure for almost every organisation in the country.
Businesses are already feeling the strain of rising operating costs, understanding these changes and preparing for them has never been more important.
Projected UK Electricity Transmission Investment (RIIO – ET3)
RIIO-ET3 business impact on transmission spending
The new price control period marks a significant shift.
Key headlines include:
• Transmission spending rising from £18bn across ET2 to £70bn across ET3
• Transmission revenue forecast to increase from £4.3bn to £10.7bn by 2031
• The transmission portion of an average domestic bill expected to rise from £44 to £104
• A projected 149 percent increase in transmission costs by 2031
These investments are designed to support clean power ambitions and build the infrastructure required for electrification, but they bring immediate implications for UK businesses.
Why is this happening
Ofgem cites several major drivers behind the uplift:
• Reinforcement across Scotland
• New Scotland–England circuits
• Multiple high voltage direct current (HVDC) links
• Widespread uprating across England and Wales
• Increased infrastructure demands from industrial growth and electrification
This is one of the most ambitious infrastructure upgrades since the 1960s. Even with strong planning, many industry experts question whether the scale can be delivered on schedule given current workforce and supply chain constraints.
What this means for businesses
If the projects move forward fully or slow down, one thing is clear … costs will rise and grid pressures will only intensify.
Businesses may experience:
• Higher standing charges
• Increased network costs
• Capacity constraints
• Slower grid connection timelines
• Greater volatility in supply charges
For energy intensive sectors such as cold storage, manufacturing, data centres and logistics, the impact could be significant over the next 36 months.
RIIO-ET2 vs RIIO-ET3 Transmission Investment
How forward looking companies are responding
In light of these changes, many organisations are taking action now to reduce exposure to rising transmission costs and enhance energy resilience.
The most effective steps we are seeing include:
1. Onsite Solar Generation
Generating clean electricity onsite cuts reliance on the grid and protects businesses from rising transmission charges.
2. Voltage Optimisation
A fast, non intrusive install that reduces power consumption, lowers bills and improves equipment lifespan across commercial sites.
3. Power Quality and Energy Infrastructure Upgrades
Reducing harmonics, stabilising voltage and improving load management helps businesses operate more efficiently and avoid downtime.
4. Battery Storage and Load Shifting
Storing power during off peak periods can mitigate cost spikes and improve operational stability.
Olympus Power’s role in supporting UK businesses
We are already working with high energy sectors across the UK to help them
• cut rising operational costs
• strengthen grid resilience
• increase renewable capacity
• improve sustainability performance
Through solutions such as;
Solar PV
Voltage Optimisation
Battery Storage
EV Charging
Data Centres
Next steps for businesses
With transmission costs forecast to climb and infrastructure pressures mounting, now is the time to act.
Olympus Power can provide a tailored assessment of your current energy usage, identify savings and build a roadmap that aligns with your business goals.
Book your assessment or speak to our team to explore your options. Get in touch to find out how we can help.
Read more about RIIO-3-Final-Determinations-ET here.