The government has announced plans for a new publicly owned Great British Grid, as part of wider efforts to modernise Britain’s electricity network, speed up connections and address the country’s high energy costs.
Announced by Prime Minister Andy Burnham at the Labour Party Conference, Great British Grid (GB Grid) will operate as a new branch of Great British Energy and invest alongside the private sector in electricity network infrastructure.
The government says the new organisation will increase competition, accelerate the delivery of grid projects and help businesses connect to the network more quickly.
Why Is Great British Grid Being Introduced?
Britain’s electricity network is facing significant pressure as electricity demand grows and more renewable generation, storage and large-scale developments seek connections to the grid.
The government says the network needs to be expanded and modernised at an unprecedented pace to accommodate growing demand and support the transition towards cleaner electricity generation. Existing connection delays have also become a significant issue for businesses and developers trying to progress new projects.
Great British Grid is intended to address some of these challenges by bringing public investment into electricity network infrastructure alongside existing private investment.
Importantly, it will not replace National Energy System Operator (NESO), Ofgem or existing network operators. Instead, it will work alongside them and compete for the delivery of new infrastructure projects.
Could It Help Reduce Energy Costs?
One of the government’s central aims is to use increased competition to bring down the cost of building and upgrading Britain’s electricity infrastructure.
The cost of maintaining and expanding the network ultimately forms part of the energy costs paid by consumers, including businesses. Introducing another participant into the market could therefore create greater competitive pressure when new infrastructure projects are awarded.
However, the impact on bills is unlikely to be immediate and the eventual level of savings remains uncertain. Britain requires substantial investment in its electricity network over the coming years, meaning the effectiveness of the new approach will depend on factors including project delivery, investment levels and how successfully additional competition reduces infrastructure costs.
The announcement also comes at a time of renewed concern around energy affordability. Separate forecasts suggest the typical domestic energy price cap could rise substantially again in January 2027, largely because of increases in wholesale gas prices linked to disruption in global energy markets.
While domestic price-cap forecasts do not directly reflect the contracts available to businesses, they highlight the continuing volatility affecting the wider energy market.
Faster Grid Connections For Businesses
For businesses, one of the most significant elements of the announcement could be proposed changes to grid connections. Alongside Great British Grid, the government plans to expand the ability of businesses and developers to build their own grid connections where appropriate, rather than relying solely on network companies to complete the work.
The government points to similar reforms in Ireland, where it says self-build connections have reduced connection times by up to 11 months. Great British Grid could also co-invest in infrastructure required for these projects.
This could be particularly relevant for organisations planning developments that require significant additional electricity capacity, as well as projects involving renewable generation, electrification, EV charging or other energy infrastructure.
What Happens Next?
Great British Grid represents a significant change in the government’s approach to electricity network investment, but its impact will take time to become clear.
Initial start-up costs will be funded through Great British Energy’s existing budgets, while the organisation’s longer-term funding arrangements will be considered as part of a future spending review. Existing private network operators will continue to play a major role in Britain’s electricity infrastructure.
For businesses, the immediate energy market remains challenging. Wholesale market volatility, network investment and wider non-commodity charges can all influence energy costs, making it important to understand both current contracts and longer-term energy requirements.
At BP Consulting, we help organisations understand the energy market, manage procurement and identify opportunities to improve efficiency and control costs. If you’re reviewing your energy strategy or want to understand how changes in the market could affect your organisation, get in touch with our team for expert advice and support.
