Bid by Chinese state to buy National Grid gas business ‘profoundly worrying’, says Labour MP
British politicians fear communist state is attempting to build a “new empire” on British shores
CHINESE state-backed firms are eyeing up a “terrifying” majority stake in the National Grid’s £11 billion gas business.
National Grid put its gas business up for sale last year and now China Gas and Fosun are believed to have made a move for the network.
Last night British politicians feared the communist state was building a “new empire” on the British shores.
Potential buyers are being offered 51% of the new company – which currently serves around 11 million people – and will take control of operations.
The possible deal would be a blow to Theresa May’s pledge to clamp down on foreign ownership of national infrastructure.
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Aides have warned her that China could end up blackmailing the UK if they end up with control of our energy supply.
The Prime Minister made the comments when she finally approved plans to build the new nuclear power plant at Hinkley Point.
She delayed the final decision immediately after taking up her post as PM in July, only giving the go-ahead after thrashing out a “new agreement” with French energy giant EDF.
EDF will build the power station with the help of Chinese investors.
The safeguards now mean the consortium will not be able to sell the site without ministers’ consent.
National Grid said: “The new owner will have to be approved by regulators and operate under the relevant requirements.
“Networks are subject to strict rules and criteria in terms of security reliability and availability and any buyer will need to prove to Ofgem and government that the can meet these criteria.”
Labour MP Stephen Pound told The Sun: “I’m profoundly worried because China are basically building a new empire out here.
“It’s a terrifying prospect.
“Energy security is a huge issue for us nowadays in the 21st century - and I don’t feel there’s any security when my energy is controlled in China.”