Scottish Legal Review Briefing: Womble Bond Dickinson

In another year of turbulent geopolitical and economic conditions, one beacon of positivity came in the form of one of the first pieces of legislation brought forward by the new Westminster government –the Great British Energy Bill, introduced on 25 July.

This bill proposed the formation of a new, public company to be known as GB Energy, a concept originally announced at Labour’s party conference back in 2022. Over this parliament, GB Energy will receive £8.3 billion to establish the United Kingdom as a clean energy superpower.

The new company – which will be owned exclusively by the UK Government, but which will operate independently – will have powers to invest in wind, solar, hydrogen, tidal and storage projects, and to develop and operate these itself.

It will also have powers to collaborate with local authorities and community groups to facilitate community-led clean energy, all with the aim of the government hitting its net-zero targets by 2050.

Further positivity came when it was confirmed in September that the new company would be headquartered in Aberdeen, so as to capitalise on the city’s world-leading track record and skill-set in the energy sector.

Edinburgh and Glasgow are to host two further, smaller sites, providing yet more encouragement for the Scottish sector. However, undertones of concern have accompanied the evolving proposals, with certain parties questioning whether direct government participation in the energy market is necessary, and others raising the lack of detail as to how the new company’s involvement in the sector would look in practice as another worry.

So, while there is more detail to come, we know that this new government project will provide the biggest shake-up of the British energy sector for years and – although the principles involved are positive – there is a lot of work to be done by the sector’s in-house counsels to ensure that their business has a sure footing when balancing risk against opportunity.

This comes at a time when in-house counsels are already pressured in a difficult economy, and Womble Bond Dickinson is well-placed to guide parties as this exciting national project progresses.