Labour has vowed to take the UK’s electricity system into public ownership as part of new plans designed to cut the UK's carbon emissions and slash fuel bills.

Rebecca Long-Bailey, the shadow business secretary, said taking the National Grid out of the hands of private shareholders would help “decarbonise” the economy and end fuel poverty.

Under the proposals, heat and electricity would be treated as a basic human right, and control of the grid handed to new public agencies that would also be tasked with helping to tackle climate change.

The policy was criticised by business groups but Labour said the current system was mainly benefiting shareholders, with more than £13bn paid out in dividends in the last five years. 25 per cent of money paid in energy bills currently goes to network companies, it said.

As part of its plans for a “green industrial revolution”, the party also promised to fund solar panels for almost two million homes. It said it would provide panels for one million social homes, plus another 750,000 properties through a programme of interest-free government loans and grants.

It claimed the move would create 16,900 jobs and reduce CO2 emissions by 7.1 million tons – the equivalent of taking 4 million cars off the road – while cutting bills by an average of £117 a year.

Under the proposal to renationalise the National Grid, the responsibilities of the organisation would be handed to a new National Energy Agency, which would also be ordered to help cut the UK’s carbon emissions to zero by 2050 and ensure that 60 per cent of energy comes from renewable sources by 2030.

It would also oversee investment in energy infrastructure to allow solar, wind and tidal energy generated in more remote parts of the country to be transported across the UK.

Ms Long-Bailey, who will unveil the plans during a visit to Salford with Jeremy Corbyn on Thursday, said: “Climate change represents a risk to our future, but also an opportunity to gather our resources and transform it through a green industrial revolution. That means dramatic, public driven and coordinated action, without which we simply will not be able to tackle climate change.

“So our plans see climate justice and social justice as inseparable. It’s an insult and an injustice to our people and our planet for companies operating the grid to rip customers off, line the pockets of the rich and not invest properly in renewable energy.

“Only by taking the grid into public ownership can we decarbonise the economy at the pace needed to secure the planet for our children and grandchildren while ending the rip off, creating good jobs in local communities and making heating and electricity a human right. That’s why public and collective ownership is a fundamental part of Labour’s green industrial revolution.”

Extinction Rebellion: Climate change protests cause chaos in London Show all 46 1 /46 Extinction Rebellion: Climate change protests cause chaos in London Extinction Rebellion: Climate change protests cause chaos in London Canary Wharf A protester gives a thumbs up as he stalls a DLR train at Canary Wharf station in London Reuters Extinction Rebellion: Climate change protests cause chaos in London City of London Protesters hold up traffic on Upper Thames Street in the City of London Getty Extinction Rebellion: Climate change protests cause chaos in London Canary Wharf Protesters hold a banner as they hold up a DLR train at Canary Wharf station in London Reuters Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Officers remove plants that were placed in the occupation of Waterloo Bridge PA Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus Police officers arrive at Oxford Circus as they prepare to remove protesters during the fifth day of a coordinated protest by the Extinction Rebellion group, April 19 Getty Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge An activist waters the plants at the occupation on Waterloo Bridge PA Extinction Rebellion: Climate change protests cause chaos in London Heathrow airport Undeterred by over 400 arrests, climate change activists continued their demonstration into a fifth day in London with a small protest at the country's main Heathrow Airport, along with the ongoing protest camps at other iconic locations around the British capital Reuters Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus Protesters with the words 'glued on' written on their hands hold hands as police officers arrive at Oxford Circus Getty Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Officers circle the lorry that serves as the central stage to the Waterloo Bridge occupation, repeating their tactic from a earlier at the Oxford Circus occupation Reuters Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus Oxford Circus reopens after being closed for days due to occupation AFP/Getty Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Officers prepare to move in on the occupation of Waterloo Bridge PA Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Activists relax on a sofa at the occupation on Waterloo Bridge AFP/Getty Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus British actress Emma Thompson talks to members of the media from atop the pink boat after police officers surrounded the boat being used as a stage as climate change activists occupy the road junction at Oxford Circus in central London during the fifth day of environmental protesst by the Extinction Rebellion group AFP Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge An Extinction Rebellion demonstrator is carried away by police on Waterloo Bridge PA Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Activists on Waterloo Bridge have made a garden for their occupation site, April 20 Reuters Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus Demonstrators began blocking off a bridge and major central road junctions on April 15 at the start of a civil disobedience campaign calling for governments to declare an ecological emergency over climate change, to reduce greenhouse gas emissions to zero by 2025, halt biodiversity loss and be led by new "citizens' assemblies on climate and ecological justice" Reuters Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus Emma Thompson joins the Extinction Rebellion protest at Oxford Circus. Thompson spoke from the pink boat at the centre of the occupation AFP/Getty Extinction Rebellion: Climate change protests cause chaos in London Heathrow airport Extinction Rebellion protesters sit outside Heathrow Airport on April 19 Reuters Extinction Rebellion: Climate change protests cause chaos in London Heathrow airport Climate protestors hold a demo outside Heathrow Airport Getty Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Police officers detain a climate change activist at Waterloo Bridge Reuters Extinction Rebellion: Climate change protests cause chaos in London Marble Arch Protesters prepare for another day at Marble Arch as the Extinction Rebellion protests enter their fifth day Getty Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus British actress Emma Thompson gives an address from the stage atop the pink boat AFP/Getty Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus Actress Emma Thompson takes a photo with a Extinction Rebellion demonstrator PA Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus Climate change activists blockade Oxford Circus on the third day of an environmental protest by the Extinction Rebellion group AFP/Getty Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Climate change activists stand atop a bus shelter as they take part in a blockade of Waterloo Bridge AFP/Getty Extinction Rebellion: Climate change protests cause chaos in London Canary Wharf Police is seen as climate change activists demonstrate during the Extinction Rebellion protest, at Canary Wharf DLR station in London Reuters Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Police speak to climate change activists blockading Waterloo bridge AFP/Getty Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge epa07511673 A demonstrator gestures the hand heart as protesters from the Extinction Rebellion campaign group block Waterloo Bridge in central London, Britain, 17 April 2019. The Extinction Rebellion are holding a number of protests across London to draw attention to climate change. EPA/NEIL HALL NEIL HALL EPA Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Climate change activists, one (right) with her hand glued to the underside of a truck parked across Waterloo Bridge AFP/Getty Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus Environmental campaigners protest in the centre of Oxford Circus Getty Extinction Rebellion: Climate change protests cause chaos in London Jeremy Corbyn's Home Climate change activists from Extinction Rebellion protest sit after glueing themselves to the front fence of Britain's opposition Labour Party leader Jeremy Corbyn's house Reuters Extinction Rebellion: Climate change protests cause chaos in London Marble Arch Dozens of tents have been pitched at Marble Arch in a large scale occupation Reuters Extinction Rebellion: Climate change protests cause chaos in London Canary Wharf station Police remove climate activists who glued themselves on top of a train at Canary Wharf station EPA Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus Police forces carry a protester AP Extinction Rebellion: Climate change protests cause chaos in London Canary Wharf station A climate change protestor who glued his hand to a window halts a DLR train AFP/Getty Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Extinction Rebellion demonstrators on Waterloo Bridge, London, after police issued a Section 14 Public Order Act 1986 warning. PRESS ASSOCIATION Photo. Picture date: Wednesday April 17, 2019. See PA story ENVIRONMENT Climate. Photo credit should read: Jonathan Brady/PA Wire Jonathan Brady PA Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge epa07512336 Extinction Rebellion climate change demonstrators protest on Waterloo Bridge during climate change protests in London, Britain, 17 April 2019. The Extinction Rebellion are holding a number of protests across London to draw attention to climate change. EPA/ANDY RAIN ANDY RAIN EPA Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge epa07512368 Extinction Rebellion climate change demonstrators protest on Waterloo Bridge during climate change protests in London, Britain, 17 April 2019. Waterloo Bridge remains closed as protests continue. EPA/ANDY RAIN ANDY RAIN EPA Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus Extinction Rebellion demonstrators in Oxford Circus, London, as more than 200 people have been arrested as police deal with ongoing climate change protests. PRESS ASSOCIATION Photo. Picture date: Wednesday April 17, 2019. See PA story ENVIRONMENT Climate. Photo credit should read: Kirsty O'Connor/PA Wire Kirsty O'Connor PA Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus LONDON, ENGLAND - APRIL 17: An Environmental campaigner is carried by police officers at Oxford Circus during the third day of a coordinated protest by the Extinction Rebellion group on April 17, 2019 in London, England. More than 100 arrests have been made, with demonstrations blocking a number of locations across the capital. (Photo by Leon Neal/Getty Images) Leon Neal Getty Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Pedestrians and a cyclist pass graffiti drawn by protestors who blocked Waterloo Bridge AP Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Climate change protestors practice yoga on Waterloo Bridge AFP/Getty Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge A climate change activist gestures while being detained by police officers Reuters Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Protestors sit on the road AP Extinction Rebellion: Climate change protests cause chaos in London Waterloo Bridge Extinction Rebellion demonstrators on Waterloo Bridge, London, as more than 200 people have been arrested as police deal with ongoing climate change protests. PRESS ASSOCIATION Photo. Picture date: Wednesday April 17, 2019. See PA story ENVIRONMENT Climate. Photo credit should read: Yui Mok/PA Wire Yui Mok PA Extinction Rebellion: Climate change protests cause chaos in London Oxford Circus Police forces carry a protestor to arrest him at Oxford Circus in London, Wednesday, April 17, 2019. The group Extinction Rebellion is calling for a week of civil disobedience against what it says is the failure to tackle the causes of climate change. (AP Photo/Frank Augstein) Frank Augstein AP

Under Labour's plan, the new National Energy Agency would work alongside 14 new regional energy agencies set up to replace the private companies that currently manage the distribution of electricity. These agencies would have a legal obligation to use less polluting fuels to produce energy and to reduce fuel poverty by ensuring that every household has access to affordable energy. They would also be charged with improving infrastructure for electric vehicles.

Local councils would be allowed to take control of energy distribution from the regional agencies if they wanted to speed up the move away from fossil fuels. Streets, housing estates and small villages would also be encouraged to generate their own energy through renewable sources such as solar panels.

Mr Corbyn said: “In this country, too often people are made to feel like the cost of saving the planet falls on them. Too many think of green measures as just another way for companies or the government to get money out of them, while the rich fly about in private jets and heat their empty mansions.

“Labour’s approach is different. Our green industrial revolution will benefit working class people with cheaper energy bills, more rewarding well-paid jobs, and new industries to revive the parts of our country that have been held back for far too long."

But the Confederation of British Industry (CBI) accused Labour of “revisiting mistakes of the past”. Matthew Fell, its chief UK policy director, said: "As drafted, these proposals amount to hanging a 'closed' sign above the UK, with renationalisation delivering a triple whammy neither citizens nor the country can afford."

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He said the plans would cause concern among investors, discourage innovation and threaten improvements in the energy network.

He added: "No-one wants a return to the frequent power cuts that were a feature of nationalised industries of yesteryear. Against the uncertain backdrop of Brexit, the country needs policies focused on powering economic growth in the future, nor revisiting mistakes of the past."

A spokesperson for the National Grid said it was "one of the most reliable networks in the world" and was "at the hard of the decarbonisation agenda".

They said: "Only a few days ago we broke the record for the longest period of time the country has gone without coal generation. We deliver reliability, investment and innovation for just 3 per cent of the average energy bill.

"These proposals for state-ownership of the energy networks would only serve to delay the huge amount of progress and investment that is already helping to make this country a leader in the move to green energy.