Andy Burnham to unveil public body to invest in electricity grid
Andy Burnham is set to announce Great British Grid in his speech on Tuesday to speed up connections and cut energy costs in Britain.
Stock photo for illustration only, not from the actual event
- Andy Burnham is set to announce a new public body called Great British Grid on Tuesday.
- The company aims to speed up grid hook-ups and lower UK energy costs within ten years.
- Funding for the new body will come from the existing budget of GB Energy in Aberdeen.
- The announcement comes amid upcoming budget pressures and pension policy debates.
Prime Minister Andy Burnham is expected to announce the creation of a new government body named Great British Grid during his first party conference speech as Labour leader in Liverpool on Tuesday.
The publicly owned company is designed to accelerate grid hook-ups by driving up competition for transmission connection projects. This initiative forms the core of a ten-year goal to bring UK energy costs in line with other European nations.
Stock photo for illustration only, not from the actual event
According to Labour, the new entity will invest in and compete for transmission connection projects alongside the three private firms that currently own and manage the grid in Britain. Furthermore, it will allow waiting firms to finance connection infrastructure themselves, with GB Grid supporting and co-investing. Funding will be sourced from the existing budget of GB Energy, the state green investment firm headquartered in Aberdeen.
The transition from fossil fuel stations to remote renewable sites like offshore wind farms requires extensive rewiring of Britain's ageing grid. Energy regulator Ofgem estimates that 70 billion pounds of investment is needed between 2025 and 2031, quadrupling the current investment rate, though the National Audit Office recently warned of growing delays and backlogs.
"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."
Andy Burnham
The establishment of the Great British Grid highlights the administration's strategy to increase public oversight of utilities to tackle infrastructure bottlenecks holding back green energy projects. However, this comes as the government faces a challenging budget next month amidst rising UK borrowing costs.
In addition to the energy grid plans, Burnham is expected to outline proposals for free social care services in England ahead of the general election legally required by August 2029, alongside ongoing speculation regarding the long-term sustainability of the state pension triple lock policy.
Source: BBC Politics
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