By Razak Musah Baba

LONDON--U.K energy regulator Ofgem Friday announced a new investment package that will enable energy companies to maintain the electricity network and connect small-scale renewable generation.

Ofgem said the plans will see the companies spend around 17 billion pounds ($26.6 billion) to renew, maintain the electricity network and connect small-scale renewable generation.

Ofgem has set out plans for five out of the six companies that run the U.K.'s local electricity network, it added.

The six companies are British Gas, which is owned by Centrica PLC; Npower, which is part of the German power giant RWE; SSE PLC; Scottish Power; E.On, which is part of the German E.On Group; and EDF, a subsidiary of EDF Energy.

The regulator also said Friday that it has secured a GBP28 million payment from the generator Drax Power for failing to meet environmental targets under the government's Community Energy Saving Program (CESP).

Drax Power was one of the six companies under investigation about compliance with obligations under CESP.

Under CESP, generators as well as energy suppliers had to deliver energy saving measures to households in low-income areas by the end of December 2012.

Ofgem has also secured GBP11 million from independent generator Intergen for failing to meet environmental obligations, it added.

Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet