Energy Secretary Ed Miliband has revealed a £630m deal that sees the government take control of the organisation that controls the UK’s energy system.
The cost, it is reported, will be reclaimed via Brits’ energy bills.
National Energy System Operator (Neso) is the new name given to the state-run body that will oversee the UK’s energy system.
According to National Grid ESO – the body Neso is replacing – the new organisation will be a “public corporation responsible for planning Britain’s electricity and gas networks and operating the electricity system.”
Neso will run alongside GB Energy – a separate organisation set up by Labour to invest in green energy projects.
Taxpayers will foot the bill, but eventually the cost will be reclaimed via charges on energy bills, The Telegraph reported.
Neso will be charied by the former boss of E.On Paul Golby, while the Energy Secretary will be the only shareholder.
The new organisation has been set up to bring electricity and gas network planning into one organisation, which will enable ministers to speed up the transition to net zero.
Mr Miliband said Neso will help “build a network that is fit for the future”.
He went on: “The new National Energy System Operator has a huge role to play in delivering our mission to make Britain a clean energy superpower.
“We need to move Britain off expensive, insecure fossil fuel markets, and onto clean, cheap homegrown power that we control. This is how we reduce bills in the long term, strengthen our energy independence and support skilled jobs across the country.”
A government spokesman said: “Currently, there is no single body responsible for overseeing the strategic planning and design of the country’s electricity and gas networks.
“Neso will fill this gap – breaking down the silos which currently exist between the planning of electricity and gas systems, with independent oversight for the design of all Great Britain’s energy networks.
“The move will enable investors to build out new energy infrastructure with confidence in how their project will fit into the country’s wider clean energy plan.”