Update on the Cotswolds Visual Impact Provision (VIP) project: Ofgem funding decision

The proposals sought to remove a 7km section of overhead electricity line and 16 pylons, between Postlip Mill near Winchcombe and Dowdeswell Wood, east of Cheltenham, in the Cotswolds National Landscape and replace it with underground cables. 

Ofgem, the UK energy regulator, ran a 28-day consultation from 1 April 2026 to 5 May 2026, which allowed interested parties to provide feedback on its proposal.

With the consultation now concluded, the regulator has today published its final decision which confirms it will not be funding the Cotswolds VIP project. 

In its publication, Ofgem has restated the need to protect consumers from unnecessary costs and that the project doesn’t represent the best value for bill payers at a time where many are struggling with the rising cost of living.

Further details of the decision are available on Ofgem's website here: https://www.ofgem.gov.uk/sites/default/files/2026-07/RIIO-2-Visual-Impact-Mitigation-Re-opener-Final-Determination-National-Grid-Electricity-Transmission%E2%80%99s-Cotswolds-VIP-Project.pdf

The decision to stop the funding will mean that the existing overhead transmission line and pylons will remain in place. National Grid will continue to operate and maintain them. 

Any future infrastructure upgrades would be subject to wider plans for investment in this part of the electricity transmission network.

We recognise this update will be disappointing for local communities, landowners and stakeholders who have helped to develop and support the scheme. We’d like to thank local communities, landowners and all those who worked with us for their time, input and support.

If you have any questions, you can contact the VIP project team by emailing [email protected] or calling 0330 134 0051 (and leaving a message if you are prompted).