27 June 2006
Energy industry regulator Ofgem has proposed a £4 billion investment in the UK's energy network in order to replace old infrastructure.
The changes would also enable renewable energy sources and more gas imports to be connected.
It said that consumers would not necessarily save much on their energy bills as a result as transmission only makes up around 2 to 3% of their bills, but reliability would be ensured.
Ofgem chief executive, Alistair Buchanan, said: "Britain's energy networks face huge challenges over the next five years to respond to changes in the sources of our gas and power.
"A variety of import projects to bring gas from areas across the world are being built and there are also proposals to greatly increase the amount of electricity sourced from renewables."
"However, there is uncertainty about when projects may be completed and where exactly investment is needed. Therefore, Ofgem is proposing price controls which will have significant flexibility to allow the companies to invest efficiently when necessary and in a way that best protects customer interests. The investment will also mean the companies can continue to maintain Britain's energy networks, which are among the most reliable in the world," he added.
Ofgem said the UK's energy firms should make the investment should be completed over the next five years.
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