UK power networks was accused yesterday of avoiding millions in tax even as it admitted it was "not prepared" for the storms over Christmas which left thousands of its customers cut off for days.

The energy giant was accused of an alleged tax dodge estimated at £38 million in levies owed to government over the past three years.

The UK Power tax scam allegations centre around £164.4m reportedly paid via the Cayman Islands to firms controlled by Asia's richest man Li Ka-shing.