Corbyn plots raid on your power shares

Labour bid to renationalise firms at cheap rate

JEREMY Corbyn will today unveil plans to renationalise energy network firms at less than their market value.

The Labour leader wants to take the National Grid and regional distribution firms out of the hands of private shareholders and into public ownership.

The price paid would be adjusted to account for ‘pension fund deficits, asset stripping since privatisation ... and state subsidies’.

The Tories said the move would hit pension funds that hold shares in the power firms, reducing the retirement income of millions of workers.

Liz Truss, Chief Secretary to the Treasury, said: ‘Appropriation of private property. Who would be next? Why would anyone invest in Britain?’

Neil O’Brien, Conservative MP for Harborough, said: ‘Labour’s plan to literally steal from pensioners is outrageous. It’s shocking – and this is only what they admit before an election.’

Labour’s plan is for new local energy boards to take over the running of the power network. The Treasury would compensate investors, adding billions to the national debt.

Rebecca Long- Bailey, Labour’s business spokesman, will announce the move during a visit to Salford with Mr Corbyn this morning.

She said: ‘It’s an insult and an injustice to our people and our planet for companies operating the grid to rip customers off, line the pockets of the rich and not invest properly in renewable energy.

‘Only by taking the grid into public ownership can we decarbonise the economy at the pace needed to secure the planet for our children and grandchildren while ending the rip-off, creating good jobs in local communities and making heating and electricity a human right.’

But Matthew Fell of the CBI business group said renationalisation was unaffordable.

He added: ‘Loose talk of renationalisation is already hitting the pockets of nearly six million pensioners. This will only increase if the plans are delivered.

‘Much-needed investment is drying up under Labour’s threats, which seriously risks hampering efforts to tackle climate change, and puts in doubt the innovation that will deliver a net- zero carbon economy.

‘These plans would threaten significant improvements in network resilience made since privatisation. No one wants a return to the frequent power cuts that were a feature of nationalised industries.’

A spokesman for National Grid said the proposals would delay the progress toward green energy. He said: ‘National Grid is one of the most reliable networks in the world, we are also at the heart of the decarbonisation agenda. Only a few days ago we broke the record for the longest period of time the country has gone without coal generation. We deliver reliability, investment and innovation for just 3 per cent of the average energy bill.’

There are 14 electricity regional distribution networks owned by six different groups: Electricity North West Limited, Northern Powergrid, Scottish and Southern Energy, ScottishPower Energy Networks, UK Power Networks, Western Power Distribution.

The eight gas networks are owned by SGN, Northern Gas Networks, Wales and West Utilities and Cadent Gas.