The decision will see the five out of six companies that run Britain's local electricity network carry out the work which it hopes will improve reliability and customer service.

"Today's plans represent good value for consumers. There will be significant investment in Britain's electricity network, and reduced pressure on bills," said Dermot Nolan, chief executive at Ofgem.

"Ofgem expects network companies to step up and take a more visible and active role in helping customers, particularly the most vulnerable."

(Reporting by Li-mei Hoang, Editing by Paul Sandle)