However, Ofgem hopes the new measures will reduce greenhouse gas emissions and cut energy costs for customers in the long run.
Alistair Buchanan, chief executive of the regulator, said: "Our latest proposals protect customers by requiring challenging cuts in operating expenditure.
"Overall the proposals allow the companies to invest £5 billion in delivering a safe, modern gas network while ensuring that costs to customers are kept to a minimum."
Other initiatives proposed in the new report include an allowance of around £60 million for the development of energy efficient and renewable technology.
The new proposals come after a survey by Abacus Billing recently found that 79 per cent of consumers think the government is not doing enough to promote energy efficiency to the UK's households.
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