Plans for a new government-backed body to invest in the electricity grid have been welcomed by the EV sector, although consumer groups warn that infrastructure upgrades alone will not bridge the widening cost divide for drivers.

During a keynote address earlier this week at the Labour Party Conference, the Prime Minister announced that GB Grid will operate as a new state-owned body under Great British Energy, backed by an initial £4bn allocation.

Andy Burnham said GB Grid would work with the private sector and network companies to increase competition in the sector, drive down costs and speed up delivery of grid connections, such as those required for electric vehicle charging hubs and renewable energy schemes.

The initiative is designed to bypass years of grid delays, directly accelerating the infrastructure needed for the UK’s EV transition.

Vicky Edmonds, chief executive officer of EVA England, said the investment in Britain’s electricity grid was welcome and important for the EV transition.

“Driving faster upgrades to the electricity network should help accelerate the rollout of public charging, support more home and workplace charging, and remove some of the connection barriers that are holding back the transition to electric.”

But she warned that grid investment alone will not make the transition work for drivers.

“We are increasingly seeing a two-tier system: those who can charge cheaply at home benefit from much lower running costs, while drivers without a driveway are often left relying on a public network that is significantly more expensive.

“That divide becomes even harder to justify, with VAT on household electricity falling to zero while public charging remains subject to 20% VAT. Government now needs to match long-term infrastructure investment with action to bring down public charging costs and expand access to affordable charging, so that choosing electric is a realistic option for every driver.”