British energy regulator announced on Monday a huge investment plan worth of 24.2 billion pounds (39.2 billion U.S. dollars) to upgrade and renew infrastructure for electricity and gas networks in the next eight years.

Of the proposed investment, 15.5 billion pounds will be earmarked for upgrading the high voltage electricity transmission network in England and Wales, and high pressure gas transmission network across Britain, both operated by the National Grid, said the Office of the Gas and Electricity Markets (Ofgem).

"This investment will help connect new sources of energy generation and ensure the continued reliable transportation of gas and electricity to homes and businesses," it said.

According to the Ofgem, major projects involving in the investment include the building of a sub-sea link to connect Scotland with England and Wales.

In response to environment protection, the Ofgem said it has improved funding arrangements to mitigate the visual impact of new and existing infrastructure.

There will be 500 million pounds initially available for transmission companies in relations to existing infrastructure in areas of natural beauty.

For new infrastructure, about 470 million pounds will be available to enable undergrouding.

Also in the package of the investment, 8.7 billion pounds will go to help ensure Britain's low pressure gas networks remain safe and reliable, and also strict targets for network companies to carry out carbon monoxide awareness initiatives, as well as funding to enable the connection of around 80,000 fuel poor household to the gas grid, helping them benefit from cheaper fuel.

Ofgem chairman Lord Mogg said: "Ofgem's new and innovative price control delivers a sound regulatory environment that protects consumers by attracting the energy infrastructure investment that Britain needs at a fair price."

The Ofgem said the increased investment will secure the robustness of the energy networks and bring impact on household bills.

It said that the annual household bills is estimated to increase by an average of 12 pounds each year, which is not cumulative, pledging to have the household bills around 15.10 pounds higher than today at the end of the price control in 2012. (1 pound = 1.6 U.S. dollars)