UK energy networks get go-ahead to invest in green revolution

Power companies will be allowed to make bigger returns as Ofgem relaxes proposals

The industry regulator will allow energy networks to plough at least 40bn into the green revolution and make higher returns on their investments, after companies threatened an unprecedented rebellion against its plans to save homes 20 a year on their bills.

Ofgem's plans, set out on Tuesday, will halve the savings energy bill payers can expect over the next five years to 10 a year after softening the crackdown on company profits it proposed over the summer.