As part of its network price controls which sets out how much revenue networks can make, Ofgem has cut this figure by almost £1bn for 2020/21.

Based on gas and electricity transmission and distribution costs, Ofgem has reduced the allowed revenues collected to £965m.

This should save customers money on their energy bills next year, though not all of this amount will be reflected on consumer bills.

The regulator said the reduction is due to lower interest rates in debt markets and because on the whole, network companies are spending less than expected. As a result, Ofgem can make a proportionate reduction to their allowed revenue. Network companies get their funding from Ofgem.