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Prime Minister Andy Burnham to launch public body for electricity grid investment

Prime Minister Andy Burnham is set to announce a new state-backed body to invest in the UK electricity grid, aiming to cut energy costs and speed up connections.
HomeBusinessPrime Minister Andy Burnham to launch public body for electricity grid investment

Prime Minister Andy Burnham to launch public body for electricity grid investment

Prime Minister Andy Burnham is set to announce the creation of a new public body dedicated to investing in the UK’s electricity grid, aiming to break the logjam of renewable energy projects currently waiting years for connection.

Speaking on Tuesday 29 September 2026 at the Labour Party Conference, the Prime Minister will outline plans for the state-backed entity, which is expected to operate under the “Great British Energy” framework. The move marks a significant policy shift toward state-led infrastructure investment, addressing a “connection queue” crisis that has seen some wind and solar farms given connection dates as far off as the 2030s.

The primary objective of the new body is to reduce national energy costs by modernising the grid to accommodate a higher volume of cheaper, renewable power. By funding these upgrades directly, the government intends to bypass the bottlenecks that have hindered private-sector transmission projects.

Addressing the grid bottleneck

The UK’s electricity grid is currently managed by National Grid, a private PLC. The new public body is not intended to replace existing operators but will represent a substantial state intervention to speed up the delivery of essential infrastructure. It will focus specifically on the transmission bottlenecks that prevent new green energy sources from reaching the homes and businesses that need them.

For householders, the government’s target is for these infrastructure improvements to contribute to lower energy bills by 2030. However, officials have clarified that there will be no immediate changes to consumer tariffs following this single announcement, as the benefits of grid investment take several years to manifest in retail prices.

According to Reuters, the initiative is a core part of the Prime Minister’s strategy to secure energy independence and insulate the UK from volatile international gas markets.

A shift in energy strategy

The speech marks Mr Burnham’s first conference address as Labour leader and Prime Minister. He is expected to argue that the current system of grid investment is “not fit for purpose” in the context of the climate crisis and the need for rapid decarbonisation.

While the exact funding amounts and a specific timeline for the body’s first investments are expected to be detailed in the coming months, the announcement signals a move away from relying solely on private capital for national energy security. The government maintains that public ownership of these core assets will ensure that investment is prioritised based on national need rather than shareholder returns.

Industry reaction is expected to be mixed, with renewable energy developers likely to welcome the prospect of faster connections, while private energy investors will be looking for clarity on how the new state body will interact with existing commercial interests in the transmission network.