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 took place on 5 September 2024. The committee stage of the bill took place between 8 and 15 October 2024. The bill was not amended by committee.

The report stage and third reading of the bill is scheduled for 29 October 2024.

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

Why has the bill been 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 initially allocated to GBE 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.

Second reading

The second reading of the bill took place on 5 September 2024. It was introduced by the Secretary of State for Energy Security and Net Zero, Ed Miliband, who said that it would bring British public ownership back into the UK energy system. He said the aims of GB Energy would be to improve energy security, create wealth for the UK and create jobs. It would do this by investing in clean energy, supporting community energy and speeding up the delivery of renewable energy.

The opposition objected to the bill on the grounds that GB Energy would not achieve the goals of reducing household bills or producing energy, and would be an unjustified use of taxpayers’ money.

Concerns were raised that the bill did not provide the necessary details on how GB Energy would operate. The lack of any specific mention of community energy in the objectives of GB Energy was emphasised. The future of the oil and gas sector in Scotland was also raised as a concern.

The bill’s second reading was passed following a division by 348 votes to 95.

Committee stage

The bill was considered at a public bill committee between 8 October and 15 October 2024.

The committee took evidence from witnesses that included the start-up chair of GB Energy, Jurgen Maier, and the Energy Minister, Michael Shanks. Jurgen Maier said that the success of GB Energy should be judged by how many renewable energy projects it will have been a part of and the jobs and prosperity it will have been responsible for creating.

Witnesses said that the main challenge for GB Energy would be finding a balance between accelerating the delivery of renewable energy and ensuring a return on investments while supporting less mature technologies. They also emphasised the importance of community energy.

During the clause-by-clause consideration of the bill, amendments were tabled on a range of issues, including community energy, energy security, job creation, the price of energy, energy efficiency, and governance.

The bill was not amended at committee stage.