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Government announces Great British Energy

The government announced Great British Energy in July 2024, following the general election, as part of a wider set of plans that now shape debate about the future of the gas grid.

A newspaper on a kitchen table beside a model of rules and regulation

The government announced Great British Energy in July 2024, following that year's general election1. The announcement was followed in December 2024 by plans for what the government described as a "new era of clean electricity", and the Clean Power Action Plan, updated in April 2025, sets out ambitions to reach a clean power system by 20301.

The gas grid that Great British Energy's plans sit alongside is a network of gas pipelines across Great Britain. Transmission networks carry gas at high pressures and speeds across the country, while distribution networks carry it at lower pressures and speeds to individual households1. Accessing the mains gas grid remains the most common way to heat a home: in the 2021 census, most households in the UK (73%) said mains gas was their only central heating source1.

Gas demand in the UK was 687 terawatt hours (TWh) in 2024. Of that, 37% was domestic, 26% was for electricity generation and 19% was for industry1. Demand in 2024 was 37% lower than in 2010 and the lowest level since the early 1990s, driven by lower demand across sectors, in particular gas used in homes, which the House of Commons Library attributes to energy efficiency and higher prices leading to lower usage, and gas used for electricity generation, due to lower overall demand and increased use of renewables1.

In 2024, 30% of electricity was generated from gas, 51% from renewable sources such as solar and wind power, and 14% from nuclear energy1.

The Library frames the policy context as the energy trilemma, "the need to balance access to affordable energy with both security and sustainability"1. It states that rising energy prices from gas, coupled with the decision to shift away from the Russian market, mean access to gas is no longer as affordable or as secure as it previously was, and that as a fossil fuel gas is not as sustainable as renewable alternatives1.

"Following the 2024 general election, the government announced Great British Energy (July 2024)"
House of Commons Library, Debate on the future of the gas grid1

Why it matters for households

Most UK homes heat with mains gas, so the direction set for the grid and for electricity generation bears directly on how a home is heated and powered. The figures show the two are linked: gas still generated 30% of electricity in 2024, while 51% came from renewables1. For a household, that mix shapes both the running cost of heating and the emissions attached to it.

The Library's account of the trilemma sets out the trade-offs rather than a route through them: affordability, security and sustainability are presented as competing pressures on continued reliance on gas for domestic energy1. Household energy independence, in this framing, is not only about where gas comes from but about how much of a home's heating and power depends on a fuel whose price and supply are described as less affordable and less secure than before1.

The 37% fall in gas demand since 2010, and the lowest level since the early 1990s, indicate that homes and generators are already using less gas, with energy efficiency and higher prices cited among the drivers1. Official figures on prices, consumption and generation are published through the official energy statistics releases, and the policy framework sits with DESNZ. Energy and buildings policy differs across the UK, including in Wales.

What happens next

The Clean Power Action Plan, updated in April 2025, sets out ambitions to reach a clean power system by 20301. The Library's debate pack on the future of the gas grid sets out further information on the grid, government plans and stakeholder commentary1. No further dated steps for Great British Energy itself have been reported.

Sources1 cited
  1. Debate on the future of the gas grid - House of Commons Library, commonslibrary.parliament.uk