Andy Burnham is expected to announce a publicly owned company to invest in Britain’s electricity grid and accelerate connections for businesses and energy projects.
The proposed Great British Grid will invest in and compete for transmission connection work alongside the three private companies that currently own and manage the country’s grid, according to Labour.
Burnham is due to set out the plan in his first party conference speech as Labour leader in Liverpool on Tuesday. He is expected to present faster grid connections as part of a wider ambition to bring UK energy costs into line with those in other European countries within 10 years.
Funding for connection infrastructure
Labour said the new body would also support companies waiting to connect to the grid by helping them finance the infrastructure required. Great British Grid could potentially co-invest in those projects alongside the businesses involved.
Funding is expected to come from the existing budget of GB Energy, the publicly owned green investment company established by Labour last year and headquartered in Aberdeen.
Burnham is expected to say the organisation will “work with the private sector and network companies” to reform the energy market. He is also expected to argue that greater competition would reduce costs and allow businesses to connect and expand more quickly.
Pressure on an ageing network
Britain’s transmission network is facing major investment as electricity generation shifts from large fossil-fuel power stations to more remote renewable sites, including offshore wind farms.
Ofgem estimates that £70bn needs to be invested in the grid between 2025 and 2031, quadrupling the current annual rate. The National Audit Office warned earlier this month that the number of projects waiting for a connection had increased significantly, while delays were also getting longer.
Burnham is expected to describe the plan as the first significant step in his ambition for greater public control of utilities. He will promise an “honest conversation” with the public about the difficult issues facing the country, including what Labour says is a crippling energy cost crisis for businesses.