The controversy revolves around the National Energy System Operator (NESO), a publicly owned body established in October 2024 after the UK government purchased the Electricity System Operator from National Grid for £630 million.

NESO, overseen by Energy Secretary Ed Miliband, plans and operates Britain’s electricity system, working closely with National Grid, which owns and maintains the transmission infrastructure.

Critics allege a potential conflict of interest because some NESO staff—former National Grid employees—retain or can acquire discounted National Grid shares.

Reports claim staff received a six-month window post-separation to purchase these shares at a discount.

This raise concerns that NESO employees might have financial incentives tied to National Grid’s performance (a FTSE 100 company worth around £57 billion), potentially influencing their impartiality in overseeing or regulating aspects of National Grid’s operations.

The story broke in early January 2026 in The Telegraph (“Miliband staff in conflict-of-interest row over National Grid shares”) and amplified by conservative-leaning sites such as Conservative Post.

As of January 6, 2026, coverage appears largely from right-leaning sources criticizing Labour’s energy policies, with limited commentary from left-leaning or neutral outlets like The Guardian or BBC in available reports.

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The decision to allow staff at the National Energy System Operator to own the stock has been branded ‘completely untenable’

Staff at Ed Miliband’s energy quango own shares in the company responsible for rewiring Britain for net zero, raising concerns over a potential conflict of interest. The Telegraph has the story.

The National Energy System Operator (Neso) was hived off from the National Grid in October 2024 and tasked with overseeing the electricity operator on behalf of billpayers.

However, in the wake of the deal, staff were given six months to buy discounted shares in National Grid, which is listed on the London Stock Exchange and generates billions of pounds in profits each year.

This means some employees at Neso, which is an independent non-profit, stand to gain financially from National Grid while overseeing its operations and future investments.

This has raised concerns over a potential conflict of interest at Neso, as such decisions could boost National Grid’s revenues and in turn its share price.

Richard Tice, Reform UK’s energy spokesman, said it was wrong for Neso employees to have a financial interest in the companies they oversee.

He said: “The Neso regulator’s staff could be financially rewarded for being a softer touch with the entity they regulate. They used to call that a conflict of interest.

“A Reform government would remove the net zero obligations from Neso’s remit and enforce a total reset of its objectives, focused on secure, plentiful, reliable, cheap electricity.”

National Grid, which is worth £57bn, is integral to Mr Miliband’s goal of generating 95pc of electricity from clean sources such as wind and solar. This is because it is responsible for building the cables and pylons required to transmit green power across the UK.

Neso confirmed that staff have been allowed to retain their shares in National Grid but stressed that they would be subject to a declaration process under Neso’s share ownership policy.

They refused to say how many of its 2,000 employees still own shares in National Grid.

Kathryn Porter, an energy analyst, urged Neso to come clean: “It’s completely inappropriate for staff to own these shares. They should be sold and staff made whole for any loss arising from the forced sale.

“This position is completely untenable. Declare the extent of the share ownership issue and start a divestment process.”

Shares in National Grid have increased by more than 20pc over the past 12 months, with investors rallying behind the company, owing to increased demand for renewables.

Read the full story here.