Andy Burnham, the Mayor of Greater Manchester, has called for greater public control of water and energy companies, but his proposals lack specificity, raising questions about what he actually intends. While public ownership is straightforward nationalisation, Burnham appears to advocate something different, yet he has not clarified what form this control would take.
In the energy sector, the government already exerts significant influence. The national energy system operator was nationalised in 2024, and the state dictates infrastructure planning through a strategic spatial energy plan until 2050. Energy secretary Ed Miliband has established a 'Mission Control' unit for clean power and reviewed Ofgem's role, which already caps supplier profit margins at 2%. Critics argue that short of full nationalisation, few control levers remain unused.
Water presents more scope for change, particularly with Thames Water's uncertain future. Creditors have been negotiating a rescue package for a year, but none of their three proposals have been accepted by Ofwat. Special administration, often called temporary nationalisation, would not guarantee public control, as the administrator must maximise value for creditors, potentially leading to a private sale. Burnham's vague messaging may stall talks, as ministers await clarity on Labour's leadership.
Burnham has also targeted United Utilities, calling for it to cancel a £266m dividend to lower customer bills. While the stock market shrugged off his comments, a prime minister overriding the regulator to forbid dividends would be unprecedented and could affect capital raising. If Burnham's ambitions extend that far, full nationalisation would be a more logical stance. He has yet to address the government's clean water bill, which aims to tighten control by abolishing Ofwat and creating a new super-regulator.
