The UK government is set to launch a new publicly owned entity, Great British Grid, in a major push to reform the nation’s power sector and curb soaring energy bills for homes and businesses.

Operating under the Great British Energy umbrella, the initiative marks the country’s first return to a publicly owned electricity network since the market was privatized under Prime Minister Margaret Thatcher in 1990.

Speaking at the Labour Party conference, Prime Minister Andy Burnham announced plans to regain “public control” over what he described as a broken energy system. Under the proposals, Ministers aim to bring UK energy costs down to levels comparable with continental European nations within a decade.

“We have a cost crisis. We all know it,” Burnham told delegates. “The price of energy is crippling for businesses, and British billpayers pay some of the highest energy costs in Europe. We have an energy system where prices are dictated in markets miles away, while families and businesses here shoulder the costs.”

The high cost of electricity in Britain has long drawn criticism from industrial leaders and consumer advocacy groups. Recent figures indicate British households pay roughly 26% above the European Union average for electricity. Market analysts point to grid congestion, network constraints, and the expensive practice of paying renewable generators to turn off during peak generation times as primary drivers behind elevated system costs.

To address long-standing delays that have hindered commercial investment, the government plans to grant businesses “self-build” rights for their connection infrastructure. GB Grid will also be permitted to co-invest directly alongside commercial entities, eliminating the requirement to wait exclusively for traditional private network operators.

While GB Grid will operate as a public entity, it is designed to work in tandem with existing private operators and energy generators.

Currently, electricity distribution and high-voltage transmission across Great Britain are split among private stakeholders, including National Grid Electricity Transmission, Scottish and Southern Energy (SSE), and Iberdrola subsidiary Scottish Power, with overall system management overseen by the National Energy System Operator (NESO).

Energy Secretary Miatta Fahnbulleh welcomed the announcement, framing the policy as an essential reversal of previous privatization strategies.

“The only way to bring down bills for good for homes and businesses is through clean power we can control,” Fahnbulleh said.

The government’s strategy faces sharp criticism from the Opposition. Shadow Energy Secretary Andrew Bowie warned that increased state involvement and associated green subsidies could exacerbate delays rather than resolve them.

“Great British Grid will become Great British Gridlock if Labour continue to pile on green levies and taxes – this is what is holding back our energy system,” Bowie said. He argued that Labour’s approach would force families to “pay twice over” for subsidised renewable infrastructure, advocating instead for deregulation to allow firms to construct gas generation and grid links independently under the Conservatives’ Cheap Power Plan.

The proposed legislation establishing Great British Grid is expected to be introduced to Parliament as part of Labour’s broader industrial and clean energy framework.