Corbyn victory to raise renationalisation debate

The rise of far-left Labour Party outsider Jeremy Corbyn to become party leader is set to reignite the debate over Government intervention in the energy industry.

Although Corbyn’s ten point energy policy plan did not call for a full renationalisation of the energy sector, Corbyn made clear in interviews that this is his “personal wish”.

His far-left campaign won almost 60 per cent of the leadership vote, attracting wide support for his hard left policies, including a renationalisation of rail services.

Former Labour MP and shadow energy minister Tom Greatrex told Utility Week that the popularity of his renationalisation rhetoric should not be ignored.

“Utilities should not dismiss the reasons why calls to renationalise are popular with many, and should be focusing relentlessly on demonstrating to customers a much improved approach,” Greatrex said.

The huge popularity of Corbyn’s renationalisation policy on the rail services, and his personal desire to see a similar change for the energy industry, may be far from becoming government policy but his views seem set to raise the profile of the debate surrounding greater government intervention.

Included in his official energy policies are calls for the state to play a greater role in securing back up generation for the UK’s constrained power market and stand as a guarantor of last resort for investment.

His policy points also call for “a fundamental shift” to reduce consumption and increase decentralised, community-owned low carbon energy. He also envisages a new role for Ofgem and National Grid.

The deputy leadership bid was won by Tom Watson with over 50 per cent of the final round vote, defeating Labour shadow energy minister Caroline Flint who attracted 22.8 per cent in the third and final round.