Policy paper

Great British Energy Bill overarching factsheet

Published 3 September 2024

Why are we legislating?

Our country faces huge challenges. More than 2 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 5 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 Scotland to invest in clean, home-grown energy. 

The Great British Energy Bill is the next stage of Great British Energy’s journey, providing 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.

When will the Bill receive Royal Assent?

The Great British Energy Bill was introduced to the House of Commons on 25 July 2024. The next stage, Second Reading, is scheduled for 5 September 2024. 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 4 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, legislative consent 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 4 nations 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.

Over the next few months, we will continue our programme of stakeholder engagement to further develop our policy approach.

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 5 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. Government has already made significant progress in setting up Great British Energy, including publishing its Founding Statement; selecting the start-up Chair, Juergen Maier; announcing Great British Energy’s first major partnership with The Crown Estate; and introducing this Bill to place Great British Energy on a statutory footing.

Throughout the next few months, we will be undertaking preparatory work to ensure Great British Energy can be operational as soon as possible, including through starting 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.

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Further information

• Please email any queries to parliamentarybills@energysecurity.gov.uk
• Great British Energy’s founding statement