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Household bills will rise by £108 by 2031 to fund a major upgrade to the UK's energy grids, an industry regulator has announced.

Ofgem said on Thursday that the £28billion investment over the next five years would bolster resilience in the transition to a renewable energy future and that much of the bill would be offset by increased efficiency.

It pointed to estimated savings for households of around £80 due to the planned investment in gas and power infrastructure, resulting in a net additional contribution of £28.

The watchdog said: "Investing now to maintain world-class resilience and expand grid capacity is the most cost-effective way to harness clean power, support economic growth and protect the country from gas price shocks like the one seen in 2022."

Gas bills will increase by an average of £48, while electricity bills will rise by £60 per year on average.

Speaking to BBC's Breakfast programme, Ofgem chief executive Jonathan Brearley said the UK needed to move away from its dependence on gas.

"Gas has a really big part to play in our energy system for some time, but we need to diversify our risk," he said.

Ofgem's announcement comes after Chancellor Rachel Reeves announced she was taking action to get energy bills down and reduce the cost of living, with £150 being cut from the average household bill from April.

Ms Reeves said she would do this by scrapping the Energy Company Obligation (Eco) scheme introduced by the Tories in Government, which she claimed had cost households £1.7 billion a year on their bills.

On Wednesday, Energy Secretary Ed Miliband wrote to energy firms, calling on them to ensure that consumers on fixed energy tariffs benefit from the cut.