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LONDON (Reuters) - UK energy regulator Ofgem on Monday proposed rule changes after parliamentary pressure to encourage investment in the power grid, which needs 32 billion pounds ($49.4 billion) to meet low-carbon commitments.

The regulator suggested, among other proposals, that it could extend price controls for energy networks to eight years from five years, giving investors more investment security, and offer greater incentives for companies that perform well and foster innovation.

"Ofgem is seeking to make regulation 'smarter' by placing more emphasis on financial incentives to deliver efficient innovation and investment over a longer timescale," Ofgem Chief Executive Alistair Buchanan said in a statement.

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