The UK energy regulator's plans to invest £5 billion in the replacement of old gas mains and training schemes are expected to lead to a £1 increase in real terms on consumers gas bills.
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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