Greater Manchester Mayor Andy Burnham to launch a public investment body for the electricity grid as Labour leader Keir Starmer pledges to cut energy costs in his first conference speech
Executive summary: Andy Burnham, Mayor of Greater Manchester, is set to unveil a new public body tasked with investing in the electricity grid, while Prime Minister Keir Starmer uses his first Labour conference speech to promise lower energy costs. Creating a dedicated public investment vehicle could unlock capital for grid upgrades needed for net zero, potentially reshaping how transmission and distribution assets are financed and operated in the UK.
Who is involved: Key actors include Andy Burnham (Mayor of Greater Manchester), Keir Starmer (Prime Minister and Labour leader), the UK Treasury, Ofgem (energy regulator), National Grid, and regional distribution network operators.
Likely next: The Labour conference will provide more detail on the body's mandate and funding; a consultation or white paper may follow, with legislation possible within the next parliamentary session.
The announcement signals a shift toward greater public involvement in grid infrastructure to accelerate decarbonisation and lower household bills. Burnham's move aligns with Labour's broader energy strategy, but details on funding, governance and interaction with the existing National Grid and Ofgem remain sparse. The policy will be tested by industry reaction and Treasury scrutiny in the coming weeks.
What's next — scenarios
Base: Public body established with Treasury backing (55%)
Grid investment accelerates modestly; consumer bills see gradual relief as new capacity comes online post-2028.
- Treasury confirms capital allocation in Autumn Budget 2026
- Ofgem publishes framework for public-body interaction with regulated networks
Upside: Rapid deployment unlocks private co-investment (25%)
Faster grid upgrades reduce curtailment of renewables, lowering wholesale prices by 2029 and attracting green industrial investment.
- Announcement of £10bn+ initial capitalisation
- Private pension funds commit matching funds within six months
Downside: Funding and governance disputes delay launch (20%)
Policy stalls, leaving grid bottlenecks unresolved; energy costs remain elevated and net-zero targets slip.
- Treasury rejects full funding request
- Legal challenge from existing network operators over asset ownership
What to watch
- Labour conference speech by Keir Starmer (29 Sep 2026) for concrete funding numbers
- Autumn Budget 2026 (expected late Oct) for Treasury allocation
- Ofgem's response and any consultation on grid governance reform (Q4 2026)
- Legislative timetable for a Grid Investment Bill (2027 session)
Timeline
- — Burnham to unveil public body to invest in electricity grid (BBC Business)
Analysis — what this means
Likely next events
- Keir Starmer's conference speech on 29 Sep 2026 expected to detail energy cost reduction plan
- Burnham's unveiling of the public body at the same conference
- Potential Treasury announcement in Autumn Budget 2026
Sectors affected
- Electricity transmission and distribution
- Renewable energy generation (wind, solar)
- Energy-intensive manufacturing
- Green finance and infrastructure funds
Regulatory implications
- Ofgem may need to adapt price control frameworks to accommodate a public investment body
- Possible changes to the Electricity Act 1989 to define the new entity's powers
- Interaction with the existing Strategic Transmission Investment framework
Historical parallels
- Creation of the Central Electricity Generating Board (1957) as a state-owned generator
- Establishment of the National Grid Company (1990) during privatisation
- Green Investment Bank (2012-2017) as a public-backed green finance vehicle
Sources
- Burnham to unveil public body to invest in electricity grid — BBC Business