£2.23bn required for electricity grid ‘to ensure it meets net-zero targets’

John French, chief executive of the Utility Regulator, told Stormont’s Economy Committee that he had approved the “largest investment in the history of Northern Ireland’s grid infrastructure”.

The Utility Regulator is the independent economic regulator of NIE Networks, which operates the electricity transmission and distribution network in Northern Ireland.

Mr French updated the committee on the RP7 price control final determination for NIE Networks, which will cover the period from April 2025 until March 2031.

RP7 sets out how much it is projected NIE Networks needs to operate its business, to maintain security of supply and build new infrastructure.

He said: “In this price control we have allowed for £2.23 billion worth of investment over the next six years for the operation and expansion of the electricity grid.

“This is the largest investment in the history of Northern Ireland’s grid infrastructure.

“It sets out an investment journey that will pave the way forward for an improved electricity system.

“But this is a long-term investment journey.”

He said the regulator had increased the allowances for network investment to “ensure Northern Ireland has the grid infrastructure it needs to meet net-zero targets and government statutory emissions and renewables targets”.

The 2022 Climate Change Act commits Northern Ireland to net-zero carbon emissions by 2050.

The regulator added: “We are very aware this is a significant investment in Northern Ireland’s grid infrastructure.”

Mr French also told the committee that through scrutiny the regulator had identified £322 million of savings within NIE.

This had led to a 12.6% reduction in what the company had originally requested in its business plan.

Mr French said that network cost made up around a quarter of the overall consumer electricity bill.

He added: “The RP7 price control investment will impact on network charges depending on a consumer’s consumption.

“Each consumer will be impacted differently depending on their individual circumstances.

“A domestic customer who does not change their electricity usages or needs shouldn’t see any material change in the network element of their bill.

“But customers who choose to adopt low carbon technologies such as electric vehicles or heat pumps will see an increase in line with their increased consumption.

“Larger consumers will see the greatest percentage increase as they are connected to the higher voltage transmission network and there will be proportionally a greater investment at this level.”