Energy bills may rise under Burnham's grid competition plan

Summarised from 4 outlets · 7 reports · Updated 2 Oct, 12:15 · Archive

Andy Burnham's new Great British Grid body will compete with private operators but could increase household energy bills.

Prime Minister Andy Burnham has announced Great British Grid (GB Grid), a state-owned body that will compete with the three private firms currently owning and operating Britain's electricity grid infrastructure. The scheme builds on Labour's manifesto pledge to create Great British Energy, a state-owned renewable investment company, and aims to increase competition, drive down energy costs and speed up electricity connections for consumers and businesses.

The Government has given new guidance to energy regulator Ofgem instructing it to place greater emphasis on British jobs and manufacturing when overseeing investment in the electricity grid, rather than focusing solely on securing the lowest price. However, the Government has acknowledged that this "buy British" approach could result in additional costs for households, at a time when families face their highest energy bills in three years.

GB Grid will be publicly owned and operate as part of Great British Energy. The proposal has attracted mixed responses from the energy sector. Some welcome the move to increase competition and transparency, whilst others argue it represents little more than another government quango that will do nothing to solve the underlying problems facing the grid.

Critics have warned that the £4 billion plan risks wasting public money without addressing the real bottlenecks in the system. They argue that shortages of skilled workers and supply chain issues are the primary constraints holding up electricity network construction, not the ownership structure of grid operators. Some have branded the scheme a "classic political distraction" from these deeper challenges.

City AM reports that data centre developers could benefit from a new route around years-long waits for electricity connections under the plan. The scheme is intended to open up grid competition and potentially help large industrial users access power more quickly.

How it is being reported

• Burnham grid shake-up offers data centres escape from power queueBritain’s data centre developers could be handed a new route around years-long waits for electricity under Andy Burnham’s plan to open up the power grid to competition. The prime minister unveiled Great British Grid (GB Grid) on Tuesday, a publicly owned arm of Great British Energy that will aim to challenge existing network operators and [...]City AM · 30 Sept, 14:50
• 'Great British Gridlock!' Andy Burnham's £4billion grid plans branded 'complete and utter con'Andy Burnham's £4billion plan for a state-owned electricity grid company risks wasting public money without solving Britain's energy problems, experts have warned. The Prime Minister's Great British Grid has been branded a "classic political distraction", with critics arguing it will do little to tackle a shortage of skilled workers and supply chain issues that are holding up construction. Mr Burnham announced the scheme at Labour's conference today, promising to increase competition, drive down costs and speed up electricity connections. GB Grid will compete with existing network operators…GB News · 30 Sept, 05:01
• Burnham’s electricity grid idea is interesting – but it’s not ‘public control’For all the talk, the real value of GB Grid lies in giving the regulator perfect data to drive down costs What is Burnham’s GB Grid plan and could it bring down energy bills? Did share prices shudder as Andy Burnham unveiled Great British Grid (GBG) as a public sector challenger to the trio of private sector firms that own and operate the electricity grid? Not exactly. National Grid and SSE, the two listed in London, were down by about 0.5%, in line with the wider market. That mild reaction looks correct. For all the talk of greater public control over the electricity grid, the prime…The Guardian · 29 Sept, 19:01
• What is Burnham’s GB Grid plan and could it bring down energy bills?Proposed government-backed network body welcomed by some in sector but others call it just another quango Andy Burnham’s first address to the Labour party conference as prime minister is due to address Britain’s rising energy costs and sluggish economic growth with plans for a new government-backed body to invest in the electricity grid. The proposals to set up GB Grid, first revealed by the Guardian , build on the party’s manifesto pledge to create Great British Energy, a state-owned company to invest in renewables, but with the tougher challenge of lowering bills and supercharging the…Guardian Business · 29 Sept, 14:09
• How Burnham’s ‘Great British Grid’ could cut your energy billsBurnham has announced a new 'Great British Grid' body to 'drive down costs' for billpayersThe i Paper · 29 Sept, 11:49
• Energy bills set to rise under new 'buy British' grid plans, Labour admitsHousehold energy bills could rise under Andy Burnham's plans to prioritise British businesses for contracts to upgrade the country's electricity grid. The Government has acknowledged that its "buy British" approach could come at an additional cost, just as families face their highest energy bills in three years. New guidance laid before Parliament this month instructs energy regulator Ofgem to place greater emphasis on British jobs and manufacturing when overseeing investment in the electricity network, rather than focusing solely on securing the lowest price. A Government policy document…GB News · 29 Sept, 08:00
• Energy bills set to rise under ‘buy British’ electricity planOfgem, the energy regulator, has been told to give more weight to UK jobs and maunfacturingThe i Paper · 29 Sept, 06:00

In this story: Andy Burnham · Ofgem · Great British Grid · National Grid · SSE · Great British Energy

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