Corbyn’s renationalisation plans should not be dismissed, warns Greatrex

A former Labour party shadow energy minister has warned that the industry should not dismiss the “alarming” calls of party leadership contender Jeremy Corbyn to renationalise the sector.

Corbyn is the current favourite to win the Labour party leadership contest despite two-thirds of people in a recent survey saying he would be unlikely to win a general election.

But while Corbyn’s suggestions are far from becoming government policy Tom Greatrex has urged utilities not to dismiss his suggestion but rather focus “relentlessly” on changing their approach to the public in light of the huge popularity of his renationalisation rhetoric.

In an exclusive column for Utility Week Greatrex notes that a costly renationalisation of the big six and National Grid was never an official energy policy pledge, but Corbyn’s campaign has stopped short of correcting the recent national news reports due to the popularity of the idea within the electorate.

“Stepping back to let opponents attack you for something you didn’t propose – because it is more popular than what you have suggested – may seem to be at odds with the anti-cynicism mantle being claimed, but it is what has happened,” Greatrex writes.

Corbyn’s ten-point energy policy makes no mention of renationalising the sector, which according to estimates could cost the government as much as £185 billion. His policy points focus instead on “a fundamental shift” to reduce consumption and increase decentralised, community-owned low carbon energy with government as a “guarantor of last resort” for back up generation and interconnection.  

“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 adds.