UK unveils ‘Great British Grid’ in bid to cut energy bills

New publicly owned company will compete to build Britain’s electricity infrastructure as ministers announce plans to accelerate construction, attract investment and allow businesses to arrange their own grid connections

The UK Government has announced plans to open up competition for major electricity projects and establish a publicly owned company to help modernise Britain’s power network and reduce energy costs.

Great British Grid, which will operate within Great British Energy, will invest in electricity infrastructure alongside private companies, with ministers promising faster construction, greater competition and lower costs for consumers.

The Department for Energy Security and Net Zero said the new body would “bring together public and private investment” to accelerate the delivery of critical infrastructure across the country.

Under accompanying reforms, businesses and developers will also be allowed to build their own connections to the electricity network where appropriate, rather than waiting for existing network operators.

Ministers pointed to similar measures in Ireland, where they said connection times had been reduced by up to 11 months.

The announcement follows efforts to overhaul Britain’s grid connection system, including plans to remove more than 300 gigawatts of speculative capacity from the connections queue.

Ministers also intend to accelerate competitive tendering for electricity transmission projects, allowing Great British Grid and other organisations to compete for contracts in a move the government says will “secure better value for consumers”.

The new organisation will work alongside existing network operators, with the National Energy System Operator retaining responsibility for operating and planning the electricity system and Ofgem continuing as its independent regulator.

Initial start-up costs will be covered by Great British Energy’s existing budget, with longer-term funding to be determined in a future spending review.

While ministers say the reforms will help cut energy costs, the Government has yet to disclose how much funding Great British Grid will receive or how much consumers could save.

READ MORE: British Chambers unite against ‘Made in Europe’ rules amid fears for UK industry. Business groups across Europe are calling for British manufacturers to be recognised under the EU’s proposed ‘Made in Europe’ framework, warning that restrictive rules could increase costs and disrupt established supply chains.

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_{Main image: A power station cooling tower dominates the landscape as the Government unveils Great British Grid, a new publicly owned body intended to modernise Britain’s electricity network and reduce energy costs. Credit: Alexandre Loureiro / Pexels}