The National Infrastructure Commission (NIC) has called for further bill hikes and a shake-up of the way the UK’s electricity network is regulated to meet rapidly increasing demand for power.

Current regulation by Ofgem is “too complex” and discourages operators from making the “proactive investments” needed to improve the network’s capacity, the government’s independent adviser said in a new report.

Demand for electricity is set to double by 2050 but investment has lagged behind, fuelling delays in securing grid connections and slowing down the roll-out of renewable energy projects.

“The UK is heading in the right direction on decarbonising power, but we can’t be complacent,” Sir John Armitt, chair of the National Infrastructure Commission, said.

Armitt said a “new approach” to regulation was required, which encourages operators to make “prudent local investments” to anticipate future demand and mitigate climate impact.

The NIC’s recommendation means the average annual household electricity bill will rise anywhere between £5 to £25.

“Asking consumers to make a small contribution up front to enable this won’t be welcome,” Armitt admitted, but he argued there was a “big prize on offer: harnessing the benefits of cheap renewable generation sooner rather than later and building a secure network optimised to support economic growth and decarbonisation, with resilience baked in.”