UK domestic gas bills could rise by about £2 a year after the energy regulator unveiled plans allowing £5bn of investment by gas distributors.
About £3.6bn of the investment, over five years, would be spent replacing ageing gas mains, watchdog Ofgem said.
Ofgem added that gas companies must also operate more efficiently.
The proposal covers four gas companies: National Grid Gas, Northern Gas Networks, Scotia Gas Networks and Wales and West Utilities.
'Fair deal'
The regulator acknowledged that networks faced pressure to raise prices, with costs increasing faster than the rate of inflation.
But Ofgem has demanded that the networks increase productivity to cut operating expenditure by 2.5% a year.
"Our proposals are a fair deal for the gas distribution networks and for customers, who will benefit from the investment increases," said Ofgem chief executive Alistair Buchanan.
The price control proposals allow the gas firms to spend 36% more on investment than in the previous five-year period.
The gas companies have until 7 January to respond to the final proposals, which would run from 2008 until 2013.
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