The government has contracted IT services firm Accenture to advise on a potential smart grid rollout in the UK.

The current UK "dumb" electricity grid dates from the 1960s and is in need of upgrade.

A smart grid would allow for better communication between electricity suppliers and consumers, preventing waste and enabling efficient distribution of power.

It would also allow decentralised power generation, meaning homes or businesses generating power can feed it back into the grid.

Accenture will analyse the UK’s current grid network and market structure, and advise on its readiness to adopt smart grid technology.

The firm will also work with the Department of Energy and Climate Change to develop a business case showing the financial viability and potential benefits of an implementation.

Omar Abbosh, managing director of Accenture’s Resources operating group, said working with local authorities will be a key step in installing the technology.

"Smart grids are a national priority but will be built locally. As such, city authorities will play a major part in making smart grids the basis for low carbon living, working and transport," he said.

Accenture is already running a smart grid trial with US utility Xcel in Boulder, Colorado. It has also created the Intelligent City Network, an online forum that shares best practice for utilities and city authorities around the world looking to work together to deploy smart grids.