What does the pledge mean? 

Labour’s pledge to establish a publicly-owned energy company, Great British Energy (GBE), was widely reported before the general election, after the party first announced the plan in 2022. 

The pledge appeared in Labour’s manifesto in a section titled “Make Britain a clean energy superpower”. It said: “To drive forward investment in clean, home-grown energy production, Labour will create a new publicly-owned company, Great British Energy. It will be owned by the British people and deliver power back to the British people.” 

The manifesto provided further details about the remit of GBE and the amount of capital it will receive. 

The manifesto also said “the company will create jobs and build supply chains in every corner of the UK”, and that it would be headquartered in Scotland. 

We’ve asked the Department for Energy Security and Net Zero (DESNZ) to confirm if “publicly-owned company” means that GBE would be a public corporation, a type of public body. 

What progress has been made?

This pledge appears to be on track. Legislation to establish GBE was introduced in Parliament on 25 July 2024, though it has not yet passed into law. The government released a “founding statement” for GBE on the same day. 

In this statement, the government described GBE as an “operationally independent company wholly owned by the Secretary of State for Energy Security and Net Zero”, and said it will be led by its own CEO. 

It said GBE will “seek to generate publicly-owned revenue to reinvest into future energy projects, creating further benefits for the UK taxpayers, billpayers and communities”, adding: “This means investing in and owning clean power generation assets—particularly in less developed technologies that can help power our clean energy future, like floating offshore wind and carbon capture. [GBE] is not simply an investment vehicle—it is a publicly-owned energy company that will take stakes in the projects it owns, manages and operates.” 

The Great British Energy Bill has passed through the Commons, and is currently progressing through the House of Lords. Explanatory notes published alongside the bill state: “The policy intent is also for Great British Energy to invest in, own and develop clean energy projects.” 

The bill would designate GBE as a limited company and establish its remit, as well as enable the government to provide it with financial support and require the Secretary of State to publish its annual report and accounts. 

Other details have also been confirmed. The explanatory notes confirm the legislation applies to all four UK nations, and that it would come into force on the day the act is passed. In September 2024, the government said GBE would be headquartered in Aberdeen, in line with another manifesto commitment. 

The explanatory notes also say: “A company called Great British Energy Group Ltd. which the government intends to designate as Great British Energy … has been set up under the Companies Act 2006 (c.46) and is wholly owned by the Secretary of State.” The company was incorporated on 10 October 2024, and lists the Secretary of State for Energy Security and Net Zero as a person with significant control.