Bills to fund electricity upgradeA typical customer pays £76 a year for electricity distribution.
The UK electricity regulator, Ofgem, says average electricity bills can increase by £4.30 a year for five years to pay for network upgrades.
The 14 networks that make up the UK supply were built in the 1950s and 1960s and are in need of investment.
Ofgem chief executive Alistair Buchanan said the proposals were "tough on inefficiency and poor service but fair in allowing the companies to invest".
And he said the new controls would lead to a greener electricity supply.
Mr Buchanan told the BBC that the customer was paying for the upgrade but that regulators had stopped companies from charging too much.
He said Ofgem had cut the sum wanted by companies by 8% to ensure value for money for the consumer.
Ofgem said investment on the UK's electricity infrastructure would be up 40% - to £7.2bn - compared to the last five years' spending.
The new investment figure includes £500m for a low carbon energy fund.
UK electricity networks are regional monopolies.
Regulators set price limits every five years to ensure a good service for customers to make up for the lack of competition.
Mr Buchanan also issued energy supply companies with what he called "a storm warning" - a message to them to make sure that households benefit from a fall in wholesale gas prices.
He said that if wholesale prices stayed where they were, bills must come down by next spring if companies wanted to avoid unspecified regulatory action.
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