Referral of the proposed subsidy to Great British Energy by the Department for Energy Security and Net Zero
Source: gov.uk (2025-06-06)

The Subsidy Advice Unit (SAU) has published a report providing advice to the Department for Energy Security and Net Zero (DESNZ) concerning its proposed subsidy to Great British Energy.

Administrative timetable

Final report

6 June 2025: The SAU has published its report providing advice to DESNZ concerning the proposed subsidy to Great British Energy. The report sets out the SAU’s evaluation of DESNZ’s Assessment of Compliance of its proposed subsidy with the requirements set out in the Subsidy Control Act 2022.
- Final report (https://www.gov.uk/government/publications/report-on-the-proposed-subsidy-to-great-british-energy-by-the-department-for-energy-security-and-net-zero) (6.6.25)
Request from DESNZ

April 2025: The SAU has accepted a request for a report from DESNZ concerning the proposed subsidy to Great British Energy. This request relates to a Subsidy of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of DESNZ’s Assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the subsidy provided by DESNZ

Setting up Great British Energy (GBE) was a key manifesto commitment of the Labour Party at the 2024 UK General Election. It is one of the UK Government’s first steps for change and it sits at the heart of the mission to make Britain a clean energy superpower. GBE will support both aspects of the UK Government’s clean energy superpower mission – to deliver clean power by 2030 and meet future increases in demand as we accelerate to net zero. The delivery of this mission requires a significant increase in the deployment of clean energy and a central role for the public sector in driving this deployment. A core tenet of GBE is about not only accelerating clean energy deployment to meet these targets but doing it in a way that allows the public to benefit from it.

The overall strategic objectives for GBE are to drive clean energy deployment across the whole of the UK as a strategic developer, investor, and owner of clean energy projects. It will ensure that UK taxpayers, billpayers and communities benefit from the clean energy transition by increasing public ownership and community involvement in the development of clean energy projects, and by supporting jobs and economic growth across the UK.

This subsidy (of up to £68m) will be used by GBE to support its operationalisation and early commercial activities during the 2025/6 financial year. This subsidy will allow GBE to make early progress towards these objectives by creating a publicly owned energy company capable of making strategic investments and delivering new projects in key renewable technologies and sectors (including in nascent technologies). This subsidy will also increase the level of finance in the clean energy sector and provide clear signals of the government’s strategic direction to crowd in private investment in order to support government’s targets to decarbonise the power sector.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed subsidy to Great British Energy, send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Please send your submissions to the public authority: xxx@xxx.xx (mailto:xxx@xxx.xx)

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with the DESNZ. The SAU will send a copy of your submission to DESNZ together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with the DESNZ using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Contacts
- CMA press team: xx-xxxx-xxxx or xxx@xxx.xx (mailto:xxx@xxx.xx)