Labour leader Jeremy Corbyn has devised proposals to take control of the UK’s energy networks in a plan that industry groups said could increase bills and slow decarbonisation.
A Labour party document reveals Corbyn’s plan to nationalise energy companies “immediately” following a general election win.
Corbyn is planning to use the same legislation that was used to nationalise Northern Rock, to justify the party naming its own price for the infrastructure, The Telegraph reported.
The paper reportedly claims that shareholders would be compensated but not necessarily at market prices, and compensation would come from bonds issued by the Treasury.
Business group CBI said the plan is “not the answer” and that the private sector is better placed to deliver innovation.
"Labour’s plan to renationalise our energy network is not the answer for the future of our power system. Doing so will hinder efforts to reduce energy bills and cut carbon emissions,” Tom Thackray, CBI director of infrastructure, said.
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"Companies like National Grid and the regional grid operators are delivering significant upgrades to our system, enabling low-carbon technologies like renewables, electric vehicle charging, and new heating options to come online.
"The private sector is best-placed to deliver this innovation, leveraging the power of markets to find the lowest cost solutions for consumers."