MACQUARIE's growing role in the country's gas network has raised the concerns of the chair of an influential Westminster committee, after an investor consortium led by the Australian asset manager raised its stake in National Gas last week.

Angus MacNeil, chair of the Energy Security and Net Zero Committee and SNP MP, told City A.M. its near-complete takeover of National Grid's gas business could spell trouble.

"There is an obvious concern that Macquarie will do in gas networks what they have done in the likes of Thames Water, they will fillet the company, add on debt for bonuses and dividends for themselves. It is quite concerning this model of capitalism, as we have seen in water continues into energy," he said.

National Gas is the group, formerly owned and spun off by National Grid, which operates the UK's 4,700 miles of gas transmission pipes, which transport supplies at high pressure around the country.

National Grid sold a controlling 60 per cent stake in the gas arm to a consortium overseen by Macquarie for £4.2bn in March 2022.

But last week Macquarie raised its stake by an additional 20 per cent in the gas business, adding that it aspired to buy the remaining interest "in due course".

This is still subject to a National Security Investment Act review, but ministers greenlit the initial 60 per cent stake in January earlier this year, meaning it is unlikely that there will be any issues.

However, the deal has attracted criticism following Thames Water's latest travails, with the UK's largest water supplier scrambling to shore up funds to maintain operations and tame a £14bn debt pile.

When Thames Water was under a Macquarie consortium-led ownership from 2006 to 2017 its debts rose from £3.4bn to £10.8bn, while forking out £1.1bn in dividends to shareholders.

Trade union GMB said last week that Macquarie's "stranglehold" on the gas business "should send alarm bells ringing".

Martin Bradley, Macquarie's head of infrastructure for EMEA, said it was focused on making the businesses it owns "effective and sustainable" and was "backing significant investment" at National Gas over the coming years.

(c) 2023 City A.M., source Newspaper