Great British Energy Bill 2024-25

The Great British Energy Bill 2024-25 was introduced to the Commons on 25 July 2024. The second reading of the bill is scheduled for 5 September 2024.

The government has published an explanatory note (PDF) and impact assessment (PDF) alongside the bill.

Why is the bill being introduced?

The bill includes provisions to create a new company, Great British Energy (GBE). GBE would be a publicly owned energy company designed to drive deployment of low-carbon, ‘clean’ energy (meaning energy not derived from fossil fuels).

GBE is part of the government’s mission to make the UK a clean energy superpower and to decarbonise the electricity grid by 2030, which was included in its manifesto for the 2024 general election. The government also sees GBE as a means of increasing energy independence and reducing the UK’s exposure to volatile international fossil fuel markets, and to return a profit for the benefit of UK taxpayers and communities.

What would GB Energy do?

GBE would participate in: the production, distribution, storage and supply of clean energy; the reduction of greenhouse gas emissions; improvements in energy efficiency; and measures to ensure the security of the UK’s energy supply.

GBE would achieve these objectives by partnering with the private sector in mature low-carbon technologies such as wind, solar and nuclear energy. It would also co-invest with the private sector in less mature technologies such as floating offshore wind, carbon capture, tidal power and hydrogen to help de-risk and develop these technologies.

GBE would engage in project investment, including upfront project development, and owning, managing and operating all, or part, of the projects it invests in. GBE would also partner with local and combined authorities, and community energy groups to roll out small and medium-sized renewable energy projects. In particular, GBE would work with the Crown Estate on project development through a new division called ‘Great British Energy: The Crown Estate’. In addition, GBE would aim to build supply chains and create jobs in the clean energy sector. GBE would not act as an energy retailer selling energy directly to consumers.

GBE would be provided with an initial £8.3 billion over the course of the current Parliament. The government expects that this funding, along with £7.3 billion provided to a new National Wealth Fund, would signal commitment to these technologies and help to bring in private investment.

Provisions in the GB Energy Bill

The bill includes provisions that designate GBE as a company. It would be operationally independent of government with its own CEO and board of directors. GBE would be wholly owned by the Secretary of State for Energy Security and Net Zero but would not have Crown status, meaning GBE will not enjoy any status, immunity or privilege of the Crown.

The bill would require GBE to set out its objectives and for the Secretary of State to agree its strategic priorities and plans, which would be laid before Parliament. The bill also includes provisions for the government to provide GBE with financial assistance.

GBE would be headquartered in Scotland, although the final location has yet to be announced. The bill would extend to the whole of the United Kingdom.

Stakeholder reactions

Reactions to the bill have been largely positive. Industry representatives have stated that GBE would help bring confidence to the market and unlock private investment, provided that it complemented the investment and expertise of the private sector.

However, some have raised concerns that the amount of funding GBE would initially receive would not make a significant difference given the scale of the challenge to decarbonise the energy system.

The importance of working with local communities has also been highlighted as a vital component of GBE.