Grid bosses ‘seek foreign haven’

NAtiONAL Grid is considering setting up sub- divisions abroad to protect itself from Labour’s threat to nationalise utility firms.

Lawyers are advising the gas and electricity network owner how it can protect shareholders from Jeremy Corbyn’s plan to return parts of Britain’s privatelyrun infrastructure to Government control, including water, electricity and rail. Labour’s proposal undervalues the industries it targets, offering to pay less than £15bn to investors to renationalise the water industry, for example.

Studies estimate shareholders would need £44bn to be fairly compensated.

if a firm sets up a unit abroad in, say, Singapore, investors would be paid fully if it ended up in Government hands.

Labour claims privatisation has led to under-investment and failing services.

National Grid was formed when electricity went private in 1990, and is now a FtSE 100 firm worth £29bn. it told the Sunday times: ‘We are taking legal advice to explore the best route to protect shareholder value.’