Ofgem said the investment packages for the companies, which cover 14 local networks, will help deliver cheaper, cleaner and more reliable local grids at no extra cost for consumers.
The networks are expected to provide more benefits by lowering returns to investors and driving more efficiencies within their companies. A key requirement of the plan will be for networks to focus investment on supporting the shift away from heavy dependence on fossil fuels, toward more homegrown sources of energy.
The potential for renewable-energy sources will require changes in the way energy is used and stored to access their benefits, such as boosting grid capacity, and the new price control will allow for the scale of investment required without adding to bills, Ofgem said.
"The investment set out today delivers value for consumers, safeguards security of supply and helps ensure Britain is no longer at the mercy of international energy prices or geopolitical events," said Akshay Kaul, Ofgem interim director for infrastructure and security of supply group.
National Grid PLC said it will review the full package contained in the final determination in detail to see if it encourages sufficient investment to transition to a low-carbon energy system while ensuring reliable supply.
Ofgem is expected to publish its statutory consultation on the proposed license modifications to implement the final determination in December, followed by a consultation period.
"Given the expected timeline, we anticipate that we will make a decision on whether to accept or appeal the license modifications by February 2023," National Grid said.
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(END) Dow Jones Newswires