Energy Supply: Artificial Intelligence and Data Centres
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the gas transmission network’s potential ability to meet rising electricity demand from AI and data centres if it does not receive adequate funding under Ofgem’s RIIO-GT3 price control.
Answered by Michael Shanks
Ofgem, as the independent regulator, are responsible for agreeing the funding and investment allowances for the gas transmission network and gas distribution network. Final decisions regarding the next price control period (RIIO3 – which covers April 2026 - April 2031) will be confirmed by Ofgem before the end of the year.
Through this process, Ofgem has a statutory responsibility to attract investment and maintain security of supply while incentivising efficiency and protecting consumers from excessive costs.
Ofgem advised in their draft determinations for RIIO-3 that funding for projects supporting rising electricity demand, including those driven by AI and data centres, will be considered where appropriate evidence is submitted, and will be confirmed in their final determinations.
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