The new electricity distribution price controls, which will run from April 2015 to 2023, will see the companies investing £17bn to upgrade and maintain the UK’s local electricity network.
The existing price control is due to expire on 31 March 2015.
Electricity distribution part of bill will decline by £12 on average and customer service standards are expected to increase as a result of the proposals, Ofgem said.
Ofgem had returned five companies’ proposals to them in November 2013 as they failed to deliver enough value for customers.
The companies were UK Power Networks, Northern Power Grid, SP Energy Networks, SSE Power Distribution and Electricity North West.
Western Power Distribution was the only firm which had its price control agreed last year after the regulator said its business plan offered enough value for customers.
Ofgem chief executive Dermot Nolan said: "Today’s announcement is all part of Ofgem’s consistent drive to get the best deal for consumers while maintaining a stable regulatory regime which attracts investment as cheaply as possible.
"Our approach has delivered over £80 billion of investment since 1990 which has seen reliability increase and power cuts fall by 30%. At the same time, total network costs are 17% below where they were 25 years ago and electricity distribution costs are 39% lower.
Ofgem said the new proposals will be under consultation for eight weeks with the final decisions planned in November 2014.
Scottish and Southern Energy Power Distribution, part of SSE, said it was disappointed with parts of Ofgem’s proposal, including assumptions about further cost reductions throughout the industry.
