ADE Urges Overhaul as Network Costs Burden Consumers
Recent revelations of excess profits among network companies and the National Infrastructure Commission’s call for a “step change” in grid investment underscore the unchecked rise of network costs, which now threaten to derail consumer affordability. The Association for Decentralised Energy (ADE) warns that doubling down on expansive grid buildout risks locking households and businesses into decades of avoidable costs, while failing to address the root cause of soaring bills, an outdated, supply-centric system.
The Commission’s own analysis acknowledges households could face an additional £25 annually by 2050 to fund grid upgrades, a figure that underestimates the compounding costs of delayed demand-side solutions. This comes as Ofgem’s standing charge proposals highlight a regulatory system ill-equipped to tackle structural inefficiencies. Vulnerable households, already grappling with £3.8bn in energy debt, risk being further penalised.
The ADE argues the solution lies not in pouring billions into cables and substations but in whole system change. Consumer-led flexibility could cost-effectively deliver over 70GW of grid stability by 2050. The ADE argues a more consumer-led flexible system could cut household bills by £105 even for non-participants and avoid £3.5bn in “shadow” gas plant investments by 2030. Yet current policies cling to a top-down, centralised model that prioritises incumbent interests over consumer empowerment.
Sarah Honan, Head of Policy at the ADE said; "Reports regarding excess profits for network companies and today’s National Infrastructure Commission report shed light on a worrying reality, we’re still ignoring how grid costs hit consumers. Instead of endless grid expansion, we need to transform the energy system - smarter, flexible, and driven by people’s needs, not cables. Invest in flexibility, not copper, that’s the future."
