Burnham to unveil public body to invest in electricity grid

Andy Burnham, Labour leader, is set to unveil a new government body, dubbed Great British Grid, during his first party conference speech as the party's leader in Liverpool on Tuesday. The primary aim of this publicly owned entity is to accelerate the installation of electricity grid connections by increasing competition for such projects.

This announcement is part of a broader strategy to align UK energy costs with those in other European nations within a decade. Burnham also intends to detail his plans for financing a new social care system similar to NHS in England during the same speech. The creation of GB Grid is seen as the first substantial step towards his goal of granting greater public control over utilities.

While specific details of the new body remain undisclosed, Labour has pledged to invest in and compete for transmission connection projects alongside the three private companies currently managing the grid in Britain. They also intend to facilitate private firms waiting for grid connections to finance their infrastructure, with GB Grid providing support and co-investing in these projects.

The funding for GB Grid is expected to be sourced from the existing budget of GB Energy, the public green investment company established by Labour last year. The aging transmission grid in Britain requires extensive upgrading, with an estimated £70bn investment needed between 2025 and 2031, quadrupling the current investment rate.

However, a recent report by energy regulator Ofgem and the National Audit Office highlighted that the number of projects awaiting grid connections has significantly increased, alongside rising delays in project implementations.