The Great British Energy Bill has entered the report stage in the House of Lords, marking a significant step in the UK government’s plan to establish a publicly owned clean energy investment company. The legislation is intended to enable Great British Energy to co-invest in generation and supporting infrastructure, accelerate deployment, and draw in private capital.
The report stage allows peers to scrutinise the Bill in detail and to consider amendments that build on the line-by-line examination completed at committee stage. It is typically the last opportunity in the Lords to make substantive changes before a short third reading and any return to the House of Commons for consideration of amendments.
Ministers have positioned Great British Energy as a long term instrument to boost energy security, support the transition to low carbon power, and lower consumer bills over time by expanding domestic generation. The government has said the company will operate alongside existing market mechanisms, such as Contracts for Difference, and will seek to partner with private developers rather than replace them.
The policy stems from Labour’s manifesto commitment to create a state-backed investor with a mandate focused on clean power and grid supporting technologies. The party has previously said the company will be based in Scotland and financed through public capital and a reformed windfall levy on North Sea oil and gas profits. Precise governance, capitalisation and risk parameters are set out in the Bill and related guidance that will be refined through Parliament.
The move through the Lords comes amid wider efforts to mobilise investment into UK energy and industry. The government has also outlined plans for a National Wealth Fund to co-invest in strategic sectors, while energy market reform and grid connection timetables remain areas of active policy. Industry groups have called for clarity on how a state investor will interact with planning, network delivery and revenue support schemes.
For listed utilities and developers, the creation of a co-investor could affect project pipelines and financing structures. Companies active in UK renewables and networks, including SSE (LSE: SSE), Centrica (LSE: CNA), National Grid (LSE: NG.), and international developers such as Ørsted (CPH: ORSTED), are likely to watch the final shape of the Bill closely, particularly any provisions on eligible technologies, investment instruments and reporting duties.
Peers are expected to focus on accountability, fiscal discipline and the scope of the company’s investment powers. Key points under discussion include the relationship with existing public bodies, transparency and audit requirements, and the balance between commercial flexibility and ministerial oversight. The government has maintained that the framework will enable investment at pace while protecting taxpayers.
The legislative timetable matters for delivery. Labour has set an ambition for a fully decarbonised power system by 2030, which implies accelerated deployment of offshore wind, onshore wind, solar, storage and flexible generation, alongside network upgrades. A state-backed investor is intended to help unlock projects that are commercially viable but face barriers related to risk sharing, supply chains or early stage development.
- Report stage in the House of Lords, with potential amendments debated and voted on.
- Third reading in the Lords, usually focused on tidying the text rather than major changes.
- If amended, the Bill returns to the House of Commons for consideration of Lords amendments.
- Once both Houses agree on the text, the Bill is presented for Royal Assent and becomes law.
- Secondary legislation and implementation, including establishing the company’s board, mandate and operating rules.
Investors will be looking for clarity on the company’s risk appetite, sectors and instruments, including whether it will take equity stakes, provide mezzanine financing, or back enabling infrastructure such as grid and storage. They will also assess how Great British Energy’s role complements the UK Infrastructure Bank and how the government intends to prioritise projects to support regional growth.
The Bill’s progress indicates broad political interest in crowding in private finance to deliver energy security and net zero goals. The details agreed at report stage will determine how quickly the company can operate after Royal Assent and the scale of its impact on the UK’s clean energy pipeline.
