£1bn 'smart grid' planned by Tories

Tory leader David Cameron is to announce plans for a £1bn investment in a hi-tech National Grid, based on technology Barack Obama plans to roll out in the United States.

Described as 'the internet for electricity', the 'smart grid' would allow energy companies to tell people when it is cheapest to use electricity, cutting bills and making the system more efficient.

'Smart meters' would be installed in every home in the UK, and consumers would be able to feed electricity generated through their own solar panels into the grid.

Cameron said he has already held talks with National Grid and would be in a position to approve investment as soon as the Tories are in office.