Ofgem’s proposed approach to its next electricity distribution price control has won cautious approval from BEAMA, the trade association representing the UK’s electrical networks supply chain, which said the reforms could deliver long-sought certainty for manufacturers.
In its response to the regulator’s RIIO-ED3 methodology consultation, published today, BEAMA said Ofgem’s plan to encourage sustained, proactive investment should help stabilise demand for network equipment between 2028 and 2033. The group argued that clearer signals from network operators would allow manufacturers to invest with greater confidence, after years of what it described as “boom-and-bust” spending patterns across price control periods.
The Climate Change Committee expects UK electricity demand to more than double by 2050, and Ofgem has proposed several measures designed to improve visibility for manufacturers. These include requiring operators to publish delivery strategies and detailed volume forecasts, as well as steps to smooth spending across the full five-year price control. BEAMA said this package would help address early-period under-investment that has previously left suppliers facing uncertain order books and idle factory lines.
A more predictable investment cycle, the association said, is increasingly important as the UK competes globally for production capacity in transformers, switchgear, sensors, and other advanced network technologies. Greater consistency in spending could strengthen the case for expanding UK manufacturing, supporting high-skilled jobs and reducing the long-term cost of network upgrades.
BEAMA, however, warned that Ofgem should go further. It called for more explicit incentives to ensure that electricity distribution network operators adhere to the spending commitments set out in their business plans. It also urged the regulator to require operators to avoid equipment containing sulphur hexafluoride where possible during RIIO-ED3, describing the potent greenhouse gas as a barrier to credible decarbonisation plans.
RIIO-ED3, which will begin on Saturday 1st April 2028, will govern network investment during a critical phase of the UK’s energy transition. BEAMA is working with the Energy Networks Association on a sector Growth Plan examining how the networks industry can maximise economic benefits. Initial findings are due to be presented on Wednesday 10th December, with a full report expected in summer 2026.
Yselkla Farmer, BEAMA’s Chief Executive, said manufacturers were ready to scale up production but still lacked the regulatory clarity needed to commit fully. “Our members want to expand their businesses to meet the challenge of a growing electricity network, but they need greater visibility of demand, and confidence that plans will turn into firm orders,” she said. “The proposals from Ofgem are a welcome step forward, but the proof of the pudding will be in whether Ofgem implements these proposals, along with strong delivery incentives for the network operators to stick to the plans they set out. Manufacturers also need regulatory clarity on key issues like the phase-out of SF6, which is delaying investment in new capacity.”
“The prize for the UK economy is massive – a big step up in investment in UK manufacturing capacity, and skilled jobs in local communities all over the country,” she added.
