Andy Burnham is set to announce the creation of a new public body, named Great British Grid, aimed at investing in and modernizing Britain's electricity infrastructure. The announcement, expected during his first party conference speech as Labour leader in Liverpool on Tuesday, signals a significant move towards greater public control over utilities.

The initiative seeks to address the rising cost of energy in the UK, which has been a burden for businesses and households. Burnham intends to bring UK energy costs in line with other European nations within a decade by improving the efficiency of grid connections. This move is positioned as a direct response to the current energy cost crisis.

Great British Grid will reportedly invest in and compete for transmission connection projects, working alongside the three private companies that currently manage the UK's electricity grid. Labour has indicated that the new body will also facilitate financing for firms needing grid connections, potentially co-investing in such projects. The funding for GB Grid is expected to be drawn from the existing budget of GB Energy, a public green investment company established by Labour last year.

This proposal comes at a critical time for the UK's energy sector. The transition from fossil fuels to renewable energy sources, such as offshore wind farms, necessitates substantial upgrades to the nation's aging transmission grid. Energy regulator Ofgem has estimated that approximately £70 billion will be required for grid investment between 2025 and 2031, a quadrupling of the current investment rate.

Recent reports highlight growing challenges in connecting new energy projects to the grid. The National Audit Office has warned of a significant increase in the number of projects awaiting connection and escalating delays. This situation underscores the urgency for investment and improved project management within the grid infrastructure.

Matthew Lawrence, founder of the think tank Common Wealth and a former advisor to Burnham, commented on the UK's unique position with a wholly privatized grid, suggesting it has contributed to slow development and underinvestment. He views the introduction of GB Grid as a positive step towards injecting public investment into crucial areas of the grid.

Burnham plans to emphasize that faster grid connections can be instrumental in alleviating the energy cost crisis that has impacted businesses. The current system, which involves state subsidies for private companies modernizing the grid to accommodate renewables, ultimately adds to consumer bills. The new public body aims to streamline this process and potentially reduce these costs.

While full details of the Great British Grid's operations are yet to be released, its establishment represents a key plank in Burnham's broader ambition for increased public oversight and investment in essential utility services, a central theme of his leadership bid.