The UK Government and Office of Gas and Electricity Markets (Ofgem) has launched a new plan to upgrade the country’s energy system.

The plan aims to provide homes and businesses with greater control over energy consumption by supporting the use of smart and battery technology, which store surplus energy.

These changes are expected to help create new business opportunities and jobs vacancies, as well as help to save up to £40bn on energy costs over the next ten years.

The UK's Business and Energy Secretary Greg Clark said: “Upgrading our energy system to make sure it is fit for the future is a key part of our industrial strategy.

"A smarter energy system will create opportunities to reduce energy costs and increase productivity."

“A smarter energy system will create opportunities to reduce energy costs, increase productivity, and put UK businesses in a leading position to export smart energy technology and services to the rest of the world.”

Under the new plan, the government is set to install smart meters, which are claimed to enable suppliers to offer lower tariffs. 

The meters are also said to make it easier for firms to develop smart appliances and gadgets that can be operated from mobile phones.

The plan will also allow consumers to use energy when it is cheapest and be rewarded for returning power to the grid.