The British government announced on Thursday that Parliament has approved legislation to establish Great British Energy, a state-owned company designed to increase investments in the energy sector and ensure more effective management.

The Department for Energy Security and Net Zero confirmed in a statement that the bill, approved by both the House of Commons and the House of Lords, will enable the government to begin practical steps to launch the company's projects with an initial budget of £8.3 billion ($11 billion) until mid-2029.

The ministry stated that the new company will accelerate the implementation of strategic energy projects and collaborate with the private sector to acquire and deploy new technologies, such as floating offshore wind, as part of the government’s modern industrial strategy.

Additionally, £200 million ($265.9 million) will be invested through the company to fund new rooftop solar projects and renewable energy initiatives for schools, hospitals, and local authorities. This is expected to improve investment project management in the sector and save hundreds of millions of pounds in long-term energy bills.

The creation of Great British Energy was one of the key campaign promises made by Prime Minister Keir Starmer last year, following widespread public dissatisfaction over soaring consumer energy prices alongside record profits for private energy firms.

The move marks a shift from previous British governments since the late 1970s, which had focused on privatizing public companies, particularly in vital sectors like transport, energy, and communications.