Prime Minister Andy Burnham has announced plans to create a publicly owned body that will invest directly in Britain’s electricity grid.

Unveiled during his address to the Labour Party conference, Great British Grid will sit within Great British Energy and invest public capital alongside private investors in electricity-network infrastructure.

The government said the organisation would compete with private operators to deliver new transmission projects, with the aim of increasing competition, accelerating grid connections and reducing costs.

Great British Energy was launched in 2025 to invest in renewable generation, energy storage and domestic supply chains. The initial costs of establishing Great British Grid will come from its existing budget, although the new body’s long-term funding will be determined through a future spending review.

Burnham has set a target of bringing British energy costs into line with those of other European countries within ten years.

Great British Grid will complement rather than replace the existing institutions responsible for the electricity system. Ofgem will remain the economic regulator, while the National Energy System Operator will continue to operate, plan and coordinate the system. Existing network operators will retain their current roles.

The government also plans to expand self-build connections, allowing developers and businesses to construct their own connections where appropriate instead of waiting for network companies. It said comparable reforms in Ireland had shortened connection times by as much as 11 months.

Important questions remain about the amount of capital available to Great British Grid, the investment structures it will use and the extent to which it can overcome planning delays, supply-chain constraints and shortages of skilled workers.