Policy paper

Great British Energy Bill overarching factsheet

Updated 18 November 2024

Why are we legislating?

Our country faces huge challenges. More than two years on from Putin’s invasion of Ukraine, every family and every business continues to pay the price for our energy insecurity. At the same time, we are confronted by the impacts of the climate crisis all around us, not as a future threat but a present reality.  

This government believes the only response to these challenges is to deliver a national sprint for homegrown clean energy. That is why one of the Prime Minister’s five driving missions is to make Britain a clean energy superpower, delivering clean power by 2030 and accelerating to net zero.

We have already taken immediate action towards achieving our mission. We lifted the ban on onshore wind within our first 72 hours in government and have set up a new 2030 Mission Control at the heart of government.

And we have already begun delivering on one of the government’s first steps for change by setting up Great British Energy: a publicly-owned, operationally independent company headquartered in Aberdeen, Scotland to invest in clean, home-grown energy. 

The Great British Energy Bill is the next stage of Great British Energy’s journey, providing it the statutory footing needed to deliver on our ambitions.

How the Bill will achieve this

The Great British Energy Bill (“the Bill”) helps to establish Great British Energy as a publicly-owned and operationally independent energy company, setting out its primary objectives of facilitating, encouraging and participating in:

• the production, distribution, storage, and supply of clean energy
• the reduction of greenhouse gas emissions from energy produced from fossil fuels
• improvements in energy efficiency
• measures for ensuring the security of the supply of energy

The Bill will give the Secretary of State the ability to provide financial assistance to Great British Energy, enabling Great British Energy to be set up and start delivering benefits for the whole of the UK. This includes driving clean energy deployment, boosting energy independence, creating jobs, and ensuring UK taxpayers, billpayers and communities reap the benefits of clean, secure, homegrown energy.

The Bill also requires the Secretary of State to prepare a statement of strategic priorities for Great British Energy. This will be laid before Parliament.

We are continuing our programme of stakeholder engagement to further develop our policy approach.

When will the Bill receive Royal Assent?

The Great British Energy Bill completed its passage through the House of Commons on 29 October 2024 and was introduced to the House of Lords on 30 October, with Second Reading on 18 November.

The remaining stages are expected to take place when parliamentary time allows. Exact dates will be published on the UK Parliament website.

What is the territorial extent of the Bill?

The Great British Energy Bill applies to the whole of the UK.

Great British Energy is intended to benefit all four corners of our nation and will help ensure every part of the UK has a role to play in delivering energy independence for our country.  

In line with the Sewel Convention, a legislative consent motion is being sought from each of the devolved governments, to the extent that provisions within the Bill fall within their competence. The Bill also requires the Secretary of State to consult ministers of the devolved governments on any aspects of the statement of strategic priorities for Great British Energy that within devolved competence.

How will you be engaging the devolved governments throughout passage?

We have been engaging regularly with the devolved governments, at both Ministerial and official level, on our plans for Great British Energy and will continue to do so.

Great British Energy is intended to benefit all four corners of the United Kingdom.

Where will Great British Energy derive its powers from?

Great British Energy is being established as a government owned company, underpinned by statute.

Subject to the requirements set out in the Bill, Great British Energy will operate, as most other companies do, in accordance with the Companies Act 2006. The detail of its functions will be set out over time through the requirements under the Companies Act 2006.

Background

Great British Energy represents a new way of doing things and will be at the heart of our clean power mission.

It is a new, publicly owned and operationally independent clean energy company that will be headquartered in Scotland and backed by £8.3 billion of new money: to create jobs, boost energy independence, and ensure UK taxpayers, billpayers, and communities reap the benefits of clean, secure, homegrown energy. 

Led by its own CEO, Great British Energy will be overseen by an independent fiduciary Board, rather than ministers, benefitting from industry-leading expertise and experience across its remit. Trade unions will also have a voice and representation within Great British Energy.

Through its five functions, set out below, Great British Energy will speed up the deployment of mature and new technologies, as well as local energy projects, to support the government’s aim of delivering clean power by 2030 whilst also ensuring we can meet future demand as we further decarbonise the economy.

• Project investment and ownership – investing in energy projects alongside the private sector, helping get them off the ground
• Project development – leading projects through development stages to speed up their delivery, whilst capturing more value for the British public
• Local Power Plan – supporting local energy generation projects through working with local authorities, combined authorities, and communities across the UK
• Supply chains – building supply chains across the UK, boosting energy independence and creating jobs
• Great British Nuclear – exploring how Great British Energy and Great British Nuclear will work together, including considering how Great British Nuclear functions will fit with Great British Energy

Setting up Great British Energy is one of government’s first steps for change and we are already delivering on this commitment. Great British Energy will be established at pace so that it can make an early impact whilst ensuring it is set up for long term success.

The Great British Energy Bill is only one part of the wider package needed to deliver Great British Energy. The government has already made significant progress in setting up Great British Energy, including:

• announcing £25 million to establish the company, with a further £100 million of capital funding to spend in 2025/26
• incorporating Great British Energy as a company
• announcing Great British Energy’s first major partnership with The Crown Estate
• publishing its Founding Statement
• selecting the start-up Chair, Juergen Maier
• introducing this Bill to place Great British Energy on a statutory footing
• setting out how Great British Energy will work with the National Wealth Fund to invest quickly
• forming a collaborative agreement with the Scottish government on Great British Energy’s partnerships with Scottish public bodies
• launching recruitment for Great British Energy’s senior leadership team, who will help shape the future workforce requirements of the organisation

Furthermore, Aberdeen has been announced as the location of Great British Energy’s new headquarters. Aberdeen will be at the heart of the company’s plans to scale up clean homegrown power to boost energy independence, create skilled jobs across the UK and to support economic growth.

Two additional sites will open in Edinburgh and Glasgow, once Great British Energy is up and running, to benefit from local skills and expertise. The company will be initially located in government buildings across the cities whilst permanent bases are established.

This marks the next step to kickstart Great British Energy as part of its mission to become a clean energy superpower.

Throughout the next few months, we will continue to undertake preparatory work to ensure Great British Energy is operational as soon as possible, including through the process of recruiting key roles into the organisation and undertaking a programme of stakeholder engagement to further develop our policy approach.

In due course, we will also establish the framework that sets out the expectations and partnership between the government and Great British Energy to enable its independent operation with effective government oversight.

Stay updated by visiting GOV.UK.

Further information

• Please email any queries to parliamentarybills@energysecurity.gov.uk
• Great British Energy’s founding statement
• Aberdeen to host Great British Energy HQ in UK-wide clean energy drive
• The Crown Estate partnership announcement