The UK’s Energy Security Bill will be introduced into Parliament today by Business and Energy Secretary Kwasi Kwarteng.
The government said it is most significant piece of energy legislation in a decade, with 26 measures.
The Bill will help drive an unprecedented £100bn of private sector investment by 2030 into new British industries that are built to last and help diversify our domestic energy supply, including hydrogen and offshore wind, and support around 480,000 green jobs by the end of the decade.
Kwarteng said: “To ensure we are no longer held hostage by rogue states and volatile markets, we must accelerate plans to build a truly clean, affordable, home-grown energy system in Britain.
“This is the biggest reform of our energy system in a decade. We’re going to slash red tape, get investment into the UK, and grab as much global market share as possible in new technologies to make this plan a reality.
“The measures in the Energy Security Bill will allow us to stand on our own two feet again, reindustrialise our economy and protect the British people from eye-watering fossil fuel prices into the future.”
Measures set to be introduced include those to support the deployment of low carbon technologies at scale such as carbon, capture, usage and storage and hydrogen, helping drive investment by giving businesses the certainty they need.
Other measures included in the Bill, such as those encouraging the deployment of heat networks and driving down the cost of ultra-efficient electric heat pumps, will help scale up the installation of key clean technologies for the future.
Other new powers will enable the extension of the energy price cap beyond 2023, shielding millions of customers across the country from being overcharged. The price cap limits the amount suppliers can charge for each unit of gas and electricity and for the daily standing charge.
Meanwhile in further efforts to protect consumers, for the first time Ofgem will be appointed to oversee regulation of the heat networks market – covering some 480,000 consumers across Britain – to ensure consumers are charged a fair price, including by enabling the regulator to investigate disproportionate prices and take enforcement action.
Consumers will be protected from increasing network prices in the event of energy network company mergers by enabling the Competition and Markets Authority to review relevant mergers under the new Energy Network Special Merger Regime.
National Grid chief executive John Pettigrew said: “The Energy Security Bill builds on the positive steps the government outlined in its British Energy Security Strategy.
“National Grid plays a vital role at the heart of the energy transition and we look forward to continuing to work together with government to realise its bold net zero goals, including delivering 50GW of offshore wind power by 2030 and establishing an independent system operator and planner.”
Energy Networks Association director of external affairs Ross Easton said: “As the first dedicated energy legislation in nearly a decade, today’s Energy Security Bill is a welcome opportunity to enable a cleaner, more affordable and more secure energy system.
“With record levels of electric vehicles, renewable energy capacity and heat pumps being introduced, alongside new technologies such as low carbon hydrogen, the role of our energy networks in integrating these technologies into the energy system has never been more important.”
Energy UK director of advocacy Dhara Vyas said: “The energy industry is ready to deliver an affordable, clean power system that will benefit consumers and the UK economy.
“The Energy Security Bill will help to ensure the UK’s long-term energy supply and a cheaper and cleaner system overall.
“With the cost of energy reaching unprecedented levels, it’s right that the government urgently legislates to protect consumers, whilst also delivering frameworks and regulation to support the decarbonisation of the UK economy so that it reduces bills in the long term.” https://renews.biz/78984/uk-energy-introduced-to-parliament/
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