UK Labour leader to announce publicly backed electricity-grid investor

Prime Minister Andy Burnham is expected to announce the creation of GB Grid in his first conference speech as Labour leader on Tuesday. The government-backed body would invest in Britain’s electricity grid and compete with privately owned companies such as National Grid. The organisation would use money previously allocated to Great British Energy.

Officials said it would have access to a £4bn pot, although it is not expected to use all of it. The announcement represents Burnham’s first major step towards his pledge to bring what he calls “the essentials of life” under public control. Ministers are also considering how to pursue more radical plans, including the possible nationalisation of Thames Water.

Burnham is expected to argue that high energy prices are placing pressure on households and businesses. He has said Britain’s energy costs should be brought into line with those in other European countries within 10 years. GB Grid would build more connections and help accelerate the rollout of renewable energy across the UK.

The plan responds to complaints from businesses about the time required to connect new buildings and projects to the grid. Officials also said businesses would gain wider rights to build their own connections and could use GB Grid funding to help pay for them. They said a similar approach had reduced connection times in Ireland by 11 months.

The body would be the first publicly owned participant in electricity networks since privatisation. Energy Secretary Miatta Fahnbulleh said the government needed to invest rapidly over the next decade and do so cost-effectively.