A £2bn auction for Electricity North West has been derailed by the Labour Party’s plan to nationalise energy networks if it wins power. Bidders got cold feet after Jeremy Corbyn unveiled plans in May to bring back into state ownership energy networks, which own the wires and pipes delivering electricity and gas to homes and businesses across the UK. Electricity North West, which owns infrastructure responsible for distributing electricity in an region that includes Manchester, was put up for sale last year by the JPMorgan Asset Management and Australia’s Colonial First State. Final bids in the auction, run by Citigroup, were due last month but the process has been hit by the political risk surrounding the sector, according to two people familiar with the situation. Bidders following the process included Spanish utility Iberdrola and Hong Kong businessman Li Ka-shing’s Cheung Kong Infrastructure fund.
FT 10th July 2019 read more »