Under the terms of the agreement, signed today (January 8) the businesses will be able to invest up to £7.2billion in upgrading networks, according to Ofgem – the industry regulator.
This includes a £500m ‘sustainability fund’ allowing them to carry out large-scale trials of smart grids and other technology needed to create a low carbon economy.
On average the price rise will mean an increase of £4.30 a year on average across the country and will run from April 1 until March 31 2015.
Senior Partner at Ofgem’s Local Grids, said: “We have set a tough but fair price control for the companies so they can invest to maintain high performance and adapt their networks to the low-carbon economy.
“The package will be delivered at a fair price to consumers who will benefit from improved service.”
Luke Walsh