GB Grid: a new player in electricity connections

GB Grid: accelerating electricity connections

On 29 September 2026, the Prime Minister, Andy Burnham, announced plans for a state-owned “GB Grid” entity. The new body, to sit within GB Energy, is intended to work with network companies and the private sector to speed up electricity connections, increase competition and support lower UK energy costs. 

The Prime Minister has an ambition to bring Britain’s energy costs in line with other European countries within 10 years as part of his ‘reindustrialisation’ plan, and to reduce Britain’s susceptibility to global markets over which the country has no control.  

The proposal is light on detail, but suggests that GB Grid will be tasked with ensuring Britain can build the network needed to get the planned generation to industry, businesses and homes.  It is expected that GB Grid could invest in, compete for or help deliver significant network infrastructure, with a view to tackling delays and improving the network expansion needed to meet growing demand.

Funding is expected to come from GB Energy’s existing pot, from which funding has already been committed, including for GB Nuclear.  GB Grid broadens the investment aims of GB Energy beyond generation and supply chains, to bring connections and network assets into play.

GB Grid’s impact will depend on whether it can help unlock network capacity and reduce delivery times in practice, rather than simply add another participant in any already complex system.  

What does this mean for industry?

There is little doubt across industry that more needs to be done to deliver essential grid projects.  Burnham is keen to demonstrate that Labour’s plan to reindustrialise Britain includes the acceleration of electricity network improvements, that will ultimately be felt in the pockets of the nation with reduced electricity costs. 

GB Grid would enter an already complex and evolving connections landscape. TMO4+ connection reform, further demand-connections reform and PIA powers, AI Growth Zones and other strategic demand measures, CATO, ITO, user self-build, transmission class exemptions, RIIO funding and Ofgem’s end-to-end connections review (to name a few) are all intended to improve speed, capacity or competition, and are at various stages of development and maturity.

The key issue we are focused on is how these pieces will ultimately fit together. GB Grid could be additive if it acts as an active player, enabler or co-investor in these measures. It could also detract from these measures (or duplicate the same) if it creates a parallel route or blurs responsibilities between government, Ofgem, NESO and transmission and distribution system operators.  

How GB Grid will interact with the existing stakeholders in the energy industry to deliver on the much needed acceleration remains to be seen.