Millions of Brits face new energy bill hikes as the Net Zero grid rollout blows its budget by 500 per cent

MILLIONS of households could face higher energy bills because major net-zero electricity grid projects are costing almost five times more than originally planned. Industry watchdog Ofgem is facing demands from developers for huge extra funding to build new power lines, after a global equipment shortage caused delays and soaring costs, according to The Telegraph. The extra spending, if signed off, will be paid for by ordinary households and businesses through their energy bills, and could total billions of pounds. Some developers say their overall costs have now rocketed by as much as 467% above original estimates. Sign up for the Money newsletter Thank you! The eye-watering figures emerged in an Ofgem report looking at eight grid projects being built in Scotland by SSE, where average costs have surged by 283.5%. Ofgem has agreed to let SSE spend more on early construction work but has not yet decided whether further increases will be allowed. One senior energy industry source told The Telegraph that grid projects were at risk of turning into “the next HS2“, the rail project notorious for blowing its budget by more than 200%. They said: “There’s a very high risk here, frankly, that grid projects are set to become the next HS2.” Ed Hezlet, an energy expert at the Onward think tank, said the cost rises were “deeply concerning” and warned bill payers could suffer for years to come. He said: “If this inflation spreads into other planned transmission projects, consumers will be paying higher electricity bills for decades.” Most read in Money Network costs are already expected to be the single biggest driver of rising household bills by 2030, climbing from £207 to £342 a year, out of an estimated total bill of £1,045. An Ofgem spokesman insisted all costs would be closely scrutinised, saying: “Every penny will be rigorously challenged by Ofgem. Nothing is judged efficient just because a network company forecasts it.” Comment now