The SNP has accused Prime Minister Andy Burnham of diverting billions of pounds from Great British Energy to fund his newly announced Great British Grid.
Burnham unveiled GB Grid at the Labour conference on Tuesday 29 September, with the new publicly owned company set to sit within Great British Energy and invest in electricity network infrastructure.
The UK Government says the new body will increase competition, speed up connections and help bring Britain’s energy costs closer to those elsewhere in Europe within a decade.
GB Grid is expected to have access to billions of pounds from within Great British Energy’s existing budget rather than receiving an entirely separate funding pot.
That has prompted criticism over what the change could mean for the original ambitions of Great British Energy, which formally opened its headquarters in Aberdeen last week.
Graham Leadbitter, the SNP’s Westminster energy spokesperson, described the decision as gutting GB Energy to pay for what he called a new gimmick.
He said:
“We were told GB Energy would save our energy industry, plainly that’s not the case as it’s just been gutted for a new gimmick.
“It’s going Going Bust Energy.
“If we are expected to believe GB Grid will be any different then I’ve got a bridge to sell you.
“It’s Scotland energy, it should be in Scotland’s hands no matter the GB badges that are slapped on these new vehicles, fundamentally we are talking about our resources.
“Resources which the people of Scotland see being syphoned off every day while our bills go through the roof.
“Through a fresh start with independence our natural resources won’t be asset-stripped, they’ll be put to work to benefit our people and build a wealthier Scotland anew.”
The criticism comes as questions are raised in the north east over how redirecting part of Great British Energy’s budget towards grid infrastructure could affect investment elsewhere.
Aberdeen and Grampian Chamber of Commerce has also questioned the plans, arguing that directing such a large share of the existing budget towards the grid could reduce support available for emerging industries including floating offshore wind.
The UK Government argues that electricity network constraints and lengthy connection times are holding back investment and adding to the country’s energy problems.
GB Grid will work alongside private network companies rather than replacing the existing electricity network, with the government intending it to compete and invest in future infrastructure projects.
The argument will now centre on whether putting Great British Energy money into the electricity network strengthens the original public energy project or leaves less money available for the renewable generation and supply chain investment it was created to support.
