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The government announced Great British Grid on Tuesday 29 September, a new publicly owned body that will sit inside Great British Energy and invest in the electricity network. Until now, Great British Energy has put public money into generation, storage and supply chain projects. The new body extends that remit to the cables, pylons and substations that carry power to homes and businesses.
Ministers say the aim is faster grid connections, greater energy security and lower costs. The announcement comes from the Department for Energy Security and Net Zero, and it arrives with two further commitments, reforms to let developers build their own connections, and faster competitive tendering for transmission projects.
At a glance
- Great British Grid is a new publicly owned body within Great British Energy that will invest in electricity network infrastructure alongside private capital.
- The government is working with NESO and Ofgem to overhaul the connections queue, which has already seen more than 300 GW of speculative capacity removed.
- Reforms to expand self build connections will let developers and businesses build their own grid connections where appropriate.
- Similar self build reforms in Ireland reduced connection times by up to 11 months, according to the government.
- Start up costs will come from Great British Energy's existing budgets, with the long term budget left to a future spending review.
What Is Great British Grid and What Will It Actually Do?
Great British Grid, or GBG, is designed to bring public and private investment together in network infrastructure. The government says Britain's grid has to be expanded and modernised at an unprecedented pace to cope with growing demand from households and businesses and to connect new sources of clean power. Private investment will keep playing a vital role, it says, but the scale of the task calls for extra public money and dedicated leadership.
In practice, GBG will invest public capital alongside private investors in electricity network projects around the country. It is meant to work with existing network operators, developers and investors rather than displace them. The government describes its purpose as adding investment, increasing competition and speeding up delivery of critical infrastructure where it is needed most.
The two bodies will be complementary. Great British Energy will carry on investing in clean generation, storage and supply chains, while GBG focuses on the network that moves that power. The government's framing is that between them they can invest across the whole energy system.
Who Still Runs the Grid? Ofgem, NESO and Network Operators
The announcement is explicit that nothing changes for the existing institutions. Ofgem stays as the independent economic regulator, responsible for regulating the energy market and network companies, protecting consumers and ensuring value for money. NESO, the National Energy System Operator, remains responsible for operating, planning and coordinating the electricity system. The role of existing network operators is, in the government's words, unchanged.
That matters because a publicly owned investor entering a privately operated sector raises obvious questions about existing contracts. The government says it does not expect GBG's role to affect existing project commitments under Ofgem licences that are already in force or in negotiation. It has not said how GBG's investment decisions will be scrutinised beyond that, and the announcement does not include a legislative timetable.
How Faster Grid Connections Could Cut Delays and Costs
For many developers the main obstacle is not generation but the wait to plug in. The government says it is already working with NESO and Ofgem to reform the connections system, including an overhaul of the connections queue that has removed more than 300 GW of speculative capacity. Clearing projects that were never likely to be built is intended to free up space for those that are.
The new step is self build. The government will bring forward reforms to expand self build connections, allowing developers and businesses to construct their own connections where appropriate instead of waiting for network companies to do it. Ministers argue this would reduce delays, lower costs and accelerate growth. As evidence, they point to Ireland, where similar reforms have reduced connection times by up to 11 months.
The announcement does not set out when the self build reforms will arrive, which projects would qualify, or how safety and technical standards would be handled. Those details are still to come.
Transmission Tendering, Opening Up Who Can Build the Network
The third strand is competition. The government will accelerate the competitive tendering of transmission projects, so that a wider range of organisations, including Great British Grid itself, can bid to deliver new network infrastructure. The stated goal is to drive innovation, improve delivery and secure better value for consumers.
Put together, the government says, these measures will help unlock investment, speed up delivery and ensure Britain has the network needed to support clean power, strengthen energy security and grow the economy. Whether households see the promised lower costs is not quantified in the announcement, which gives no figure for bill savings.
Who Pays for Great British Grid and What Happens Next
Funding is the least settled part of the plan. The initial start up costs for GBG will be covered by Great British Energy's existing budgets. Because grid projects take a long time to develop, the government says the long term budget for the expanded remit will be considered as part of a future spending review. No total investment figure was given for the new body.
The government also acknowledges that further investment in the network will be needed over the coming decades, on top of the connections reforms already under way. Details on GBG's governance, leadership and first projects have not yet been published.
Key Takeaways
- Great British Grid will let the public sector invest in electricity network infrastructure for the first time through Great British Energy.
- Ofgem remains the independent regulator, NESO keeps operating and planning the system, and existing network operators keep their roles.
- The government wants to expand self build connections, citing Irish reforms that cut connection times by up to 11 months.
- Transmission tendering will be opened up so that more organisations, including Great British Grid, can compete to build new infrastructure.
- Long term funding for Great British Grid has not been set and will be considered at a future spending review.