Prime Minister Rishi Sunak has appointed Grant Shops as Energy and Net Zero Secretary in a reshuffle of government portfolios.
The Department for Business, Energy and Industrial Strategy has been disbanded as part of the restructuring.
Greg Hands has replaced Nadeem Zahavi after the former Tory party chairman was sacked over his tax affairs.
And Lucy Fraser will head up an integrated department for culture, media and sport.
Mr Sunak’s top team of ministers will meet in the coming hours to discuss the changes.
The government said the new Department of Energy Conservation and NetZero would be “tasked with securing our long-term energy supply, reducing bills and halving inflation”.
Mr Sunak promised last summer – when he was campaigning to become Conservative leader – to re-establish a separate department for energy.
The reshuffle will see business and commerce merged into one department, headed by Kemi Badenoch, and a new department focused on science, innovation and technology, led by Michelle Donnellan.
There has been no change in the position of Deputy Prime Minister Dominic Raab. JEE News understands that Mr Sunak is awaiting a report on the bullying allegations against Mr Raab before making a decision on his future.
Despite talk of changes by the Prime Minister’s team, speculations about a possible reshuffle have been rife in recent days.
Mr Sunak has been under pressure to assert his authority over his government and party since he took office in October last year, after two prime ministers resigned in political turmoil.
But his government has been mired in political controversy in recent weeks and the Conservatives continue to trail Labor in opinion polls.
