Not only has Sir Keir promised the creation of a nationalised energy company, but he pledged to do so within one year of a Labour government.
In his keynote speech at the Labour Party Conference, in Liverpool, on Tuesday, September 28, the Labour leader described his plans for “a new company that takes advantage of the opportunities in clean British power… because it’s right for jobs, because it’s right for growth, because it’s right for energy independence from tyrants like Putin.”
At the moment, the majority of British energy companies are not just largely privately owned, but they are owned by foreign companies.
Sir Keir referenced “the largest onshore windfarm in Wales” that is owned by Sweden, highlighting that “energy bills in Swansea are paying for schools and hospitals in Stockholm”.
What are the potential benefits of a nationalised energy company?
The Guardian reports that British households will miss out on up to £4,400 over the next two years due to the UK not having a nationalised energy-generation company, according to analysis from the Trades Union Congress (TUC).
In addition, the TUC has stated that a system similar to France’s EDF or Germany’s EnBW could see Britain benefit from between £63 billion and £122 billion over the next two years.
The aim for the Great British Energy Company, as Sir Keir named it, is for the UK to benefit financially from the increase in the use of renewables.
Although the company would have operational independence, there would be a mandate to invest in clean energy, such as wind, solar, tidal, nuclear, and other emerging technologies.
The hope is a state-backed company like the Great British Energy Company would be able to make riskier investments, potentially helping to fund new energy technology, like modular reactors and tidal power.
The idea is a popular one across the political spectrum, with research from think-tank Common Wealth showing that 72 per cent of voters, as well as 72 per cent of Conservative voters specifically, think the idea is a good one.
However, green campaigners and some Labour activists are pushing for the full nationalisation of existing energy companies. By comparison, the Great British Energy Company would be a new creation.
“The party should commit to public ownership of the whole energy system, so we can tackle the cost-of-living crisis and meet the scale of the climate emergency,” said Chris Saltmarsh, national co-ordinator for Labour for a Green New Deal campaign group.
