National Grid should be stripped of its role managing the UK energy networks due to the potential for conflicts of interest, MPs on the energy select committee have said.

New independent "system operators" should be set up to manage supply and demand on Britain’s national gas and electricity networks, the committee said in a report.

National Grid gets regulated income for owning and maintaining the electricity transmission network in England and the gas distribution network across the UK.

As system operator, the company also has formal responsibility - as well as an influential position - to advise on the level of new network investment needed.

"National Grid could advocate more capacity than necessary in order to be allowed to build, then own, such assets," the report warns.

It said there was also a potential conflict of interest in National Grid’s non-regulated business developing interconnector cables to import power from abroad, since as system operator it was in a position to call on interconnectors – or other options – to help keep the lights on.