GB Energy, the publicly owned energy company championed by the Labour government, is facing significant criticism regarding its performance two years after its inception. An investigation by The Sunday Mail has branded the £8.3 billion initiative a “complete failure”, highlighting a notable absence of investment in Scottish firms and a failure to deliver on promises to cut household energy bills and create a “huge number” of skilled jobs in Scotland.
Launched in July 2024 with the aim of reducing average annual fuel bills by £300 and establishing Britain as a “clean energy superpower,” GB Energy’s impact, particularly in Scotland, has come under intense scrutiny.
The investigation revealed that GB Energy has not invested in a single homegrown firm north of the border. Its approximately £100 million in clean energy project investments have primarily benefited two English companies and a Danish private equity fund. Specifically, this includes a £7.5 million stake in Sussex-based solar-thermal firm Naked Energy and £40 million into Sheffield-based hydrogen company ITM Power Ltd.
The company’s first investment, up to £50 million, was directed towards the Pentland Floating Offshore Wind Farm off the coast of Dounreay in Caithness, as part of a joint £150 million package; however, this project is majority-owned and led by Danish investment firm Copenhagen Infrastructure Partners.
Dr. Ewan Gibbs, an energy historian at Glasgow University, remarked on the slow progress:
“The big story for me here is just how little has been achieved in two years. This is meant to be an urgent priority for our current government in terms of creating manufacturing jobs, lowering energy bills and decarbonising the energy system in Britain.
Simply, the full progress is clearly not fast enough – and we’re all paying for the consequences of that.”
Dr. Gibbs further highlighted the perceived inadequacy of the investment, noting:
“You’re looking at under £100million invested so far. To me, that’s just miniscule, I’m afraid, in terms of the scale of the transition. The UK Government has given more money to the petrochemicals complex in Grangemouth alone.”
Concerns also extend to job creation and infrastructure. While an initial target of 1,000 jobs was later downgraded to 300 by the end of the decade, only 132 people are currently employed by GB Energy, with just 53 permanent staff and 46 based outside Scotland. The company’s Aberdeen headquarters at Marischal Square is yet to open its doors, though it is expected later this year. Proposed additional sites in Glasgow and Edinburgh have not materialised.
SNP energy spokesman Graham Leadbitter MP criticised the scheme, stating:
“Labour’s flagship GB Energy was meant to create 1,000 jobs in Aberdeen and right across Scotland but what do we have? A handful of jobs in Aberdeen and instead cash pumped into English nuclear power and Wimbledon solar panels.
The fact is 1000 energy jobs are being lost a month in our energy sector and our energy bills are nearly £600 higher than the Labour Party promised at the last general election.”
Douglas Lumsden, Tory MP for Aberdeen South, echoed these sentiments, calling GB Energy a waste of time
and a public scandal.
He added: “Labour promised GB Energy was the magic bullet to create jobs and cut energy bills, but this couldn’t be any further from the truth.”
Meanwhile, Scottish households are reportedly facing higher bills than the UK average, with MoneySuperMarket research indicating typical annual costs of up to £1,870, already £150 higher than the October price cap.
The investigation attributed the sharp rise in bills, in part, to Donald Trump’s war against Iran, which led to the closure of the Strait of Hormuz waterway vital for global oil and gas transit. Thom Quinn of Uplift, a supporter of the Our Power Scotland campaign, stated that Scots are being short-changed
and urged for greater ambition from the UK Government to ensure more wealth and jobs from renewables remain in Scotland, rather than flowing into the pockets of distant shareholders or the treasuries of other countries.
In response to the criticism, a GB Energy spokesman affirmed:
In Case You Missed it:
“We have moved quickly from foundation to delivery, immediately giving people ownership of our energy system by investing almost £100million in projects, which will create 1500 jobs across the UK.”
Public sentiment, as reflected in a March 2026 YouGov poll, suggests nearly two-thirds of UK voters support bringing energy companies back into public ownership, a position new Prime Minister Andy Burnham has indicated he supports for stronger public control of utilities.
“`
