The Labour Government has unveiled its legislative blueprint for Great British Energy, the UK’s publicly owned energy company pivotal to achieving the ‘2030 net zero grid target’.

Today, His Majesty The King has announced the government’s legislative agenda.

This State Opening of Parliament marks the government’s commitment to “rebuilding Britain” with 40 bills and draft bills.

The forthcoming laws are poised to prioritise economic expansion through improved transport infrastructure, job creation initiatives and accelerated development of housing and public infrastructure projects.

• Clean energy and Great British Energy

King Charles has emphasised the government’s dedication to transitioning to clean energy, assuring that it will gradually reduce costs for consumers.

Plans are underway to establish a new nationalised energy entity named Great British Energy, headquartered in Scotland, aimed at boosting investments in renewable energy.

In addition, legislative measures are in the pipeline to ensure energy independence, including support for the production of sustainable aviation fuel.

The King also highlighted concerns about water quality and announced forthcoming legislation to enhance the authority of the water regulator.

King Charles said: “My government recognises the urgency of the global climate challenge and the new job opportunities that can come from leading the development of the technologies of the future.

“It is committed to a clean energy transition, which will lower energy bills for consumers over time. A bill will be introduced to set up Great British Energy, a publicly owned clean power company headquartered in Scotland, which will help accelerate investment in renewable energy such as offshore wind.

“Legislation will be brought forward to help the country achieve energy independence and unlock investment in energy infrastructure.

“A bill will be introduced to support sustainable aviation fuel production. My government recognises the need to improve water quality and a bill will be introduced to strengthen the powers of the water regulator.”

• Planning reforms

The monarch said, “My ministers will focus on revitalising Britain by initiating planning reforms to expedite the construction of high-quality infrastructure and housing.

“They will also aim for sustainable growth by promoting investment in industry, skills development and new technologies.”

Prime Minister Keir Starmer said: “Now is the time to take the brakes off Britain. For too long people have been held back, their paths determined by where they came from – not their talents and hard work.

“I am determined to create wealth for people up and down the country. It is the only way our country can progress, and my government is focused on supporting that aspiration.

“Today’s new laws will take back control and lay the foundations of real change that this country is crying out for, creating wealth in every community and making people better off – supporting their ambitions, hopes and dreams.”

• Rail nationalisation

King Charles added: “My ministers will introduce an English devolution bill. Legislation will be introduced to give new powers to metro mayors and combined authorities.

“This will support local growth plans that bring economic benefit to communities. A bill will be introduced to allow local leaders to take control of their local bus services.

“My ministers will bring forward legislation to improve the railways by reforming rail franchising, establishing great British railways and bringing train operators into public ownership.

“Taken together, these policies will enhance Britain’s position as a leading industrial nation and enable the country to take advantage of new opportunities that can promote growth and wealth creation.”

Watch the video:

Julia Hailes, renowned sustainability advocate and author, delivered a passionate address at The Big Zero Show, stressing the critical need for businesses to shift towards regenerative models in the face of mounting environmental challenges.

Ms Hailes, known for her seminal work in promoting sustainable consumerism through books like “The Green Consumer Guide,” underscored the inadequacy of current efforts and called for a fundamental rethinking of corporate practices.

During her speech, Julia Hailes lamented the insufficient media coverage of recent environmental protests and emphasised the catastrophic impact of climate change on global biodiversity.

Referencing the documentary “Breaking Boundaries,” she recounted scientists’ emotional responses to ecological devastation, including the collapse of the Great Barrier Reef and mass wildlife extinctions due to climate-induced disasters.

Julia Hailes said: “We need regenerative businesses. We need businesses that are looking at system change. We don’t want businesses that are thinking we’re going to go on doing exactly what we’ve done before but possibly a little bit greener.

“And I have to admit that I’ve seen some businesses out there, which I think is that’s what they’re proposing. People are talking about sustainability. I set up a company called Sustainability in 1987. And followed it with a book called The Green Consumer Guide, which sold over a million copies worldwide.

“At the time, what we were doing was we were highlighting the fact that if businesses were doing, making greener products and services, they would get more business because they would get consumer support.

“And we were excited because businesses heard our message. I started talking to the supermarkets in 1987 about what they were doing. And they had no idea what I was talking about. It was just a whole new world that they hadn’t even heard of.”

Click the video to watch the full session:

UK businesses are spending an average of £5,160 annually on energy, a 12.6% rise from the previous quarter.

That’s according to POWWR’s Quarterly Energy Barometer Report, which suggests this is still 17.7% less than the same period last year and about half of the costs at the peak of the energy crisis in late 2022.

The report highlights regional differences in energy costs, with businesses in the North East of England paying the least at £4,300 per year, while those in North Wales pay the most at £6,761.

POWWR’s Quarterly Energy Barometer Report, based on over 361,000 data points, reveals that overall energy usage by UK businesses continues to decline.

The average business now consumes 23MWh annually, a 12.3% decrease from the previous year.

This reduction is mainly driven by large companies, as small and medium-sized businesses have shown a slight increase in energy consumption.

According to the report, the average energy contract length remains 25 months across regions with minimal variation.

Smaller companies tend to prefer locking in their energy costs for longer periods at 25 months, compared to 23 months for larger companies.

Matt Tormollen, Chief Executive Officer at POWWR, said: “Whilst it is great that UK businesses are using less and less energy, the average amount they spend on electricity has increased. This is down to a number of factors.

“Firstly, despite market conditions being far more stable, the unit cost of energy has actually increased this quarter due to concerning weather patterns.

“Secondly, there has been an industry-wide increase to the standing charge (the daily charge set by the supplier regardless of energy usage).

“This has mostly been felt by smaller companies who have historically been likely undercharged. The good news is that the change to the standing charges is a natural correction that shouldn’t be seen again for quite some time.”

Ofgem is extending its consultation on the cap and floor regime for electricity interconnectors included in Window 3.

This follows initial consultations in September 2023 on financial parameters for these interconnections.

Ofgem is now seeking further feedback on the methodology for setting the cap rate, including updates to the equity beta parameter, Total Market Return and Risk Free Rate.

The cap and floor regime aims to incentivise interconnector development by setting maximum and minimum revenue levels over a 25-year period, balancing risk and benefit between developers and consumers.

The final decision will be made after considering stakeholders’ views.

1)            What’s happening in the markets and why?

Renewed concerns around LNG supply saw gas prices push up above 5% on the UK front month contract yesterday. Following Hurricane Beryl, the startup of the Freeport LNG export facility in Texas has been slower than the market had previously expected. With Europe now reliant on the global LNG market, traders remain acutely aware of potential disruptions. Freeport announced that one train will return to operation this week, but that the other two trains will be still ongoing hurricane repairs for an unspecified period of time. This seemed to be enough to trigger LNG supply side fears and push prices higher on Monday across the curve. Today feedgas data shows that Freeport LNG is already ramping up the first train, with flows averaging today at 12mcm/d and are still increasing which has seen prices push back slightly.  Traders will continue to weigh the supply impact against fundamentals which are pretty comfortable right now . European stock levels are over 80% full, higher than usual for the time of year. Stronger renewable generation and steady flows from Norway have also helped to soften supply concerns.

2)            What should energy buyers look out for?

Looking ahead, uncertainty over remaining Russian flows through Ukraine and the risk of a colder-than-normal winter will continue to dominate the market. At the end of August into September Norwegian maintenance will once again kick in and therefore energy buyers should continue keep a close eye on the Norwegian maintenance schedule.

3)            What would you recommend?

Depending on your cover levels, taking some volume now given prices have eased to levels seen not seen for a few months, may offset any further risk premiums. However, if you have already taken a significant amount of cover and are comfortable you may want to hold off closer to delivery to try and capture extra value – this will be dependent on your risk appetite.

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