UK Government to Launch Publicly-Owned 'Great British Grid' to Boost Energy Competition

Andy Burnham is set to announce the creation of a new publicly-owned entity, the 'Great British Grid' (GB Grid), as part of a broader nationalization agenda. The initiative is designed to foster competition and expedite electricity grid connections for businesses and significant projects.

This move signifies the reintroduction of a state-owned player in electricity networks, the first since privatization under Margaret Thatcher approximately 36 years ago. The Prime Minister is scheduled to unveil these plans during his keynote address at the Labour Party conference in Liverpool. His speech is also anticipated to outline proposals for increased state control over water and housing sectors.

The GB Grid is expected to utilize funding from a £4 billion taxpayer allocation previously designated for Great British Energy, an entity established under Keir Starmer. Burnham has set a ten-year target to align UK energy costs with those in other European nations.

"We have a cost crisis. We all know it. The price of energy is crippling for businesses, and British billpayers pay some of the highest energy costs in Europe," Burnham is expected to state in his speech. "We have an energy system where prices are dictated in markets miles away, while families and businesses here shoulder the costs. Once again, the British public has lost control.

"Within ten years, I want our energy costs to be in line with other nations in Europe. That means we must reform a broken energy market so it serves the public interest. I can announce today our plan for Great British Grid, a publicly-owned company that will work with the private sector and network companies. It will increase competition to drive down costs and speed up delivery so businesses can connect faster and grow quicker. This is what more public control can do."

The GB Grid aims to use public funding for the development of additional grid connections and to optimize and accelerate the deployment of renewable energy across the United Kingdom. This initiative addresses concerns regarding the lengthy process for obtaining grid connections for new developments and projects. It also responds to apprehensions that existing electricity networks may struggle to meet the escalating demand for connections from new data centers required to support artificial intelligence infrastructure.

Labour's plan includes provisions for businesses to have the right to 'self-build' their connection infrastructure, with GB Grid available for co-investment, thereby reducing reliance on waiting for network companies. Energy Secretary Miatta Fahnbulleh commented that this move is "another step towards mending the decades of Tory policies which ripped out public control from our energy systems," adding that "the only way to bring down bills for good for homes and businesses is through clean power we can control."

However, the proposal has drawn criticism. Conservative MP Andrew Bowie, the shadow energy secretary, suggested that "Great British Grid will become Great British Gridlock if Labour continue to pile on green levies and taxes – this is what is holding back our energy system." He further stated, "Burnham wants to nationalise the network so Labour can cram on more subsidised wind farms, and families will pay twice over." Bowie contrasted this with the Conservative approach, asserting, "The Conservatives would get out of the way, letting businesses build their own gas power and grid connections and bid openly for capacity, and cutting electricity costs for every business through our Cheap Power Plan."

Sam Richards, CEO of the pro-growth campaign group Britain Remade, described the initiative as a "sideshow." He argued, "Instead of doing the serious work of bringing down bills by introducing local pricing and pushing forward further planning reform, Andy Burnham is setting up yet another quango. Britain needs more competition and fewer barriers to new energy projects, not more government bureaucracy with a grand name."