Prime Minister Andy Burnham will today announce the creation of a new publicly owned energy network company as he sets a target of bringing Britain’s energy costs into line with other European countries within a decade.
Great British Grid will sit within Aberdeen-based Great British Energy and invest alongside private companies in electricity network infrastructure, with a focus on speeding up grid connections, increasing competition and removing barriers to industrial investment.
The government says lengthy connection queues and underinvestment in the grid have become a major brake on economic growth, with businesses and major projects facing lengthy waits to secure the capacity they need.
Under the plans, businesses will also be given greater rights to build their own connection infrastructure, with GB Grid able to support and co-invest in projects rather than companies having to wait for existing network operators.
GB Grid will be funded from Great British Energy’s existing budgets and will be able to invest in and compete for transmission projects, marking the first publicly owned player in Britain’s electricity networks since privatisation.
The announcement represents a significant further call on Great British Energy’s £8.3billion budget, with around £4billion expected to support GB Grid and £2.5billion already committed to Great British Nuclear.
Mr Burnham will tell Labour’s conference today: '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. 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 Prime Minister will address his party conference at 2pm this afternoon.
Source: Aberdeen & Grampian Chamber of Commerce
