.png)
A new poll reveals that over half of Labour supporters anticipate reducing their energy bills from the proposed publicly owned, clean power company during this parliamentary session. Conducted by YouGov on behalf of the think tank Common Wealth, the survey indicates that nearly 50% of Brits favor Labour's ambitious initiative to launch Great British Energy, a publicly owned company dedicated to clean energy. This initiative envisions a retail arm delivering domestically sourced clean electricity directly to consumers.
The findings, published today, show that 45% of the public would welcome GB Energy's entry into the retail market, with one-third expressing a willingness to switch from their current energy providers to this publicly owned enterprise. Conversely, according to the think tank's analysis, only 25% prefer to remain with their existing suppliers.
GB Energy, a cornerstone of Labour's General Election manifesto, was heralded as a significant policy proposal. The party promised to establish a clean energy investment firm headquartered in Scotland, bolstered by an initial £8.3 billion in public funds throughout the next Parliament. The company aims to collaborate with industry and communities to co-invest in clean energy technologies, support large-scale projects, and roll out numerous local clean energy initiatives.
The new government has swiftly moved to advance this vision, including introducing a GB Energy Bill in the recent King's Speech. Common Wealth reports that public support remains robust, with 63% of respondents supporting the establishment of a publicly owned energy company.
The think tank posits that expanding GB Energy's scope to include a retail division could be crucial for solidifying its political appeal. Failure to do so might provoke public dissatisfaction, especially considering that 36% of the population expects the firm to lower their bills within the next five years—an expectation that rises to 53% among Labour voters.
"The public are clear - they want a retail option so people can buy homegrown clean power direct from GB Energy," said Mathew Lawrence, director of Common Wealth. "What's more, Labour's new coalition expects GB Energy to cut their bills. The best way to deliver is to create a public retail option to translate renewable energy into lower bills and economic security."
However, a Department for Energy Security & Net Zero spokesperson said that Great British Energy will not be a retail energy company.
"Great British Energy comes from a simple idea – that the British people should own and benefit from our natural resources," they explained. "It will own, manage, and operate clean energy projects across the country, at the heart of the government's mission to make Britain a clean energy superpower.
"While Great British Energy will not be a retail energy company, it will guarantee our energy security and protect billpayers permanently as we speed up the transition away from fossil fuels and towards homegrown clean power."
Energy Security and Net Zero Secretary Ed Miliband has consistently emphasized that GB Energy is envisioned primarily as a generation company rather than a retail entity. He argues that any move to develop a retail arm could provoke an intense backlash from existing market players and intensify concerns that the state is crowding out private investment.
Nevertheless, the recent YouGov poll, released alongside a briefing from Common Wealth, has stirred a fresh debate on GB Energy's role. The think tank proposes that GB Energy could benefit from a customer-facing division to address retail and wholesale electricity market inefficiencies. Such an arm could facilitate progressive pricing, enabling lower costs for poorer households.
Common Wealth envisions GB Energy as a direct supplier of clean electricity to consumers and businesses and as a key player in Power Purchase Agreements and Contracts for Difference with private renewable energy providers and its own generation projects. This strategy, they argue, would circumvent the wholesale market's marginal pricing model, allowing GB Energy to deliver clean power at reduced costs to end-users.
"To lower bills by the next election, bring greater fairness to pricing, and greater coherence to the power system, Great British Energy needs a retail arm," said Adam Khan, principal energy analyst and the briefing's author.
Comments