SSE and National Grid move offshore to protect against nationalisation plans

Energy Live article : by Johnny Bairstow : published 25 November 2019

SSE and National Grid move offshore to protect against nationalisation plans

SSE and National Grid have moved part of their businesses offshore to protect themselves and their investors against the Labour Party’s nationalisation plans.

The Sunday Times has reported National Grid has opened holding companies in Hong Kong and Luxembourg and suggests SSE has done the same in Switzerland.

The precaution would not prevent the companies from being taken over by a Labour Government but could help to protect investors – the party plans to renationalise the UK’s railways, mail service, water supply, broadband provision and energy networks to benefit consumers, decarbonise the economy faster and create jobs.

Businesses that could be affected fear they could be nationalised at less than their current market value, which would prove detrimental to shareholders, which include pension funds.

National Grid is worth £31 billion, while SSE has a market value of £13.6 billion.

In a statement, the Labour Party said: “The UK’s energy networks are vital strategic infrastructure on which we all rely. You cannot boil a kettle, heat your home or run a business without the grid.

“The idea that private owners, who have been ripping off the public, would move offshore in an attempt to prolong the rip-off illustrates just why we need the grid back in public hands.”

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