In a speech today (Tuesday) at the Labour Party Conference, the current Prime Minister (we’ve had a few of late) will unveil (after careful leaking first) the vague outline of something to do with a nationalised grid, or part public ownership, or a quango or perhaps even some form of greater regulatory control.

Under the name of Great British Grid, it is proposed to be able to speed up connections.

Ofgem has estimated that a £70bn of investment is required in the grid in the next six years, quadrupling the current rate of investment, whilst the National Audit Office has warned growing delays for connection.

Which leaves an interesting question: who pays?

Clearly one solution is heavy private investment but would that square with greater government control. Another would be adding the extra to energy bills, but that might be publicly unacceptable in a “cost of living” crisis. Tax, is of course, the go to solution, either direct or via ‘tiered’ energy cost (that is the more you earn, the more you pay). An indirect benefit of this would be that wealthier households may chose top switch to renewables to avoid the taxes, but then where does the money come from?

Taxation is clearly being floated by Energy Secretary Miatta Fahnbulleh, who is openly talking about funding green infrastructure through general taxation.

But, there is another option: more borrowing. The bond markets aren’t particularly friendly, but with optimism Burnham has repeated hinted that he doesn’t much care for the bond market either.

As Nigel Green of the deVere Group notes: “One careless line from Andy Burnham in Liverpool today could push Britain’s borrowing costs higher and land on every mortgage, pension and savings pot in the country.”

The comments come as the UK’s ten-year gilt yield sits near 5.29 per cent, its highest level since the global financial crisis and the sharpest climb anywhere in the G7.

Green added: “The Great British Grid could prove transformative, or it could prove ruinously expensive. For anyone holding UK utility shares or bonds, the questions are brutally simple. What will it cost, who gets compensated and on what terms? Vagueness here is dangerous. Capital flees uncertainty far faster than it ever comes back.”

As with all policy, in the end there is always the question of, in the end, Cui bono?

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