Ofgem has published its Final Determination for RIIO T3, confirming the regulatory framework that will guide the UK’s electricity transmission system from 2026 to 2031. For anyone working in power, transmission and distribution or major infrastructure, this is a critical moment to understand what is coming next.
And it is big.
The next five years will deliver one of the most ambitious grid upgrades in a generation, paired with one of the biggest workforce challenges the UK has experienced.
Below is a clear, people smart breakdown of what RIIO T3 means for the industry and how businesses can stay ahead.
RIIO T3 in simple terms
RIIO T3 sets the funding, incentives and regulatory rules for electricity transmission owners. The headline is a transformational grid build that comes with huge investment, refreshed incentives and a stronger focus on delivering a resilient network that can handle rising demand.
From connecting new low carbon generation to supporting the growth of data centres and electrified transport, RIIO T3 lays the foundations for a future ready power system.
1. A £35bn investment pipeline that reshapes the UK grid
Network operators have outlined investment plans worth up to £35 billion to upgrade and expand the transmission network. This includes:
- New overhead line and underground cable circuits
- Substation expansions and refurbishment
- Advanced control and protection systems
- New connections for renewable and flexible generation
- Infrastructure to support offshore and interconnector growth
For engineering teams and delivery partners, this is a significant, multi-year programme of works. Expect strong demand for design engineers, HV specialists, civil & structural engineers, commissioning teams, project managers, site managers & wireman/fitters.
2. Transmission capacity set to double
RIIO T3 supports the most significant increase in transmission capacity for decades. To meet future demand, the system must move more power, more efficiently and with greater resilience.
This will require:
- Additional circuit capacity
- Faster reinforcement
- Smarter asset management
- Greater digitalisation and control
For candidates, this creates a wave of career defining projects. For clients, it increases the pressure to secure talent early because every organisation will be competing for the same skills.
3. Updated financial framework that supports long term planning
Ofgem has confirmed a 6.12 percent allowed cost of equity at 60 percent gearing, supported by updated totex and incentive mechanisms. Operators are now reviewing the package to confirm that it is both deliverable and investable.
The key point for workforce planning is simple. Stable, long-term investment allows businesses to plan ahead rather than relying on reactive recruitment.
4. What happens next
Licence modifications will move into consultation before finalisation in early 2026. Once agreed, transmission owners and delivery partners can move quickly into planning, procurement and mobilisation.
In other words, the green light is coming.
Organisations that prepare their teams now will be in the strongest position to deliver.
The biggest challenge is people
The work volume is huge and the UK talent pool is already stretched. From HVDC and substations to civils and environmental consent, skills shortages are real. RIIO T3 will amplify this pressure.
Matchtech is already supporting clients by:
- Mapping future workforce requirements
- Building long term talent pipelines
- Upskilling and cross skilling teams
- Attracting new entrants into the power and transmission market
- Deploying contractors quickly to meet workload peaks
- Strengthening delivery capability across critical programmes
Early action will define who can deliver at the pace RIIO T3 requires.
Bottom line
RIIO T3 is a major milestone for the UK. It supports investment, protects affordability and strengthens the long-term resilience of the transmission network.
The transformation ahead depends on people. Securing the right mix of skills will be the difference between delivering the UK’s future grid and falling behind.
If you want support planning your workforce for RIIO T3 or understanding how the changes affect your upcoming projects, we are ready to help.
Talk to us about the people who will build the UK’s next generation power network.