Burnham to announce new publicly-owned grid operator

Andy Burnham is set to introduce a new publicly-owned entity aimed at investing in the UK's electricity grid to combat high energy costs. The Prime Minister is anticipated to unveil the Great British Grid, which will accelerate grid connections by boosting competition during his Labour conference address on Tuesday. Burnham plans to present the initiative as part of his mission to engage in "honest conversations" with the public on the previously overlooked issues, a key aspect of his campaign for the Labour leadership.

The creation of the Great British Grid will be seen as the inaugural step toward these objectives. Ministers describe the new company as competing with private firms to invest in transmission projects and aiding companies in connecting to the grid through support and co-investment. The funding for this initiative will come from GB Energy, a publicly-owned green power company established under Keir Starmer's administration last year.

In his speech, the Prime Minister is expected to declare that GB Grid will collaborate with the private sector and network companies to reform a "broken energy market" by increasing competition, reducing costs, and speeding up the delivery of services. Shares in prominent energy companies on London's stock exchange declined on Tuesday morning, reflecting the potential impact of the new publicly-owned operator's increased competition.

Britain's outdated electricity grid requires a substantial overhaul, with Ofgem projecting that investment needs to quadruple to £70 billion between now and 2031. Burnham is projected to advocate for broader public control of the nation's utilities in his first Labour conference speech as party leader, emphasizing the need for politicians to take greater control over essential services to enhance the country's functionality.