New 'Buy British' grid policy could push household energy bills higher

A draft policy tabled in Parliament directs the energy regulator to prioritize British jobs and manufacturing in decisions on electricity-network investment, potentially letting higher-priced contractors win contracts if they offer greater social value. The government acknowledges that this "buy British" approach could involve a short-term cost trade-off, but it has not provided an estimate of the effect on household bills and no comprehensive impact study has been completed.

The change comes as the energy price cap is due to increase by four per cent, lifting the typical annual bill by roughly £60 to £1,723. The guidance, which would take effect on 17 November unless rejected within 40 days, follows the Prime Minister’s plan to launch Great British Grid, a publicly owned body aimed at accelerating grid connections for businesses. Critics, including Shadow Energy Secretary Andrew Bowie, argue the move is ideological and could burden already strained consumers, while Ofgem says it will continue to protect consumer interests.