The new ‘Energy Bill’, previously, the Energy Security Bill, looks at reforming the 10-year-old Energy Act (2013). This is to get the legislation up to speed with not only current technology, but the needs of consumers and businesses alike.
The bill has reached the final stages of parliament earlier this month and is awaiting final amendments before being passed as a legislation .
The energy security bills main aim is to drive around £100 billion of private sector investment by 2030 into clean technology and give way to an estimated 480,000 clean jobs by the end of the decade.
Here are some of the most relevant points from the bill :
Investment in Clean Technology and building up energy system:
- Explore the role of hydrogen in heating homes and workplaces.
- Scale up heat pump manufacturing and installation and setup improvements to affordability and availability.
Consumer Price Protection:
- Enhance network security with the establishment of a Future System Operator (an impartial body with responsibilities across both the electricity and gas systems) and introduce competition in electricity networks.
- Protect consumers from network price increases resulting from energy network company mergers.
- Implement protections for smart appliances, advance the smart meter rollout, and reform energy codes for innovation and net-zero alignment.
- Amend EU-derived energy performance regulations and strengthen the Energy Savings Opportunity Scheme (ESOS).
- Appointing Ofgem to regulate heat networks to protect consumers and promote the development of heat networks.
Robust and resilient energy system:
- Enhance safety, security, and resilience in the energy system.
- Includes: fuel supply resilience, nuclear energy, and offshore oil and gas sectors.
Other aspects for context:
- Accelerate offshore wind deployment while protecting the marine environment.
- Support energy-intensive industries and compensate them for network charging costs.
- Incorporate net-zero targets and carbon budgets into Ofgem’s duties.
- Promote responsible ownership of UK energy assets and maximize cost recovery.
The delays however, stretching back to the summer are pushing the transition back further, with a fair share of representatives from energy companies alike taking issue . The main question for all parties is if this is the last of the delays. Portions of the bill can be amended in this phase, which could see some potential key factors such as investment size and dates/timelines altered.
The proposed changes seem to point in a positive direction, giving achievable targets with some deadlines. However, after the PM’s speech this month regarding Net Zero as a whole , the proposed delays have not only caused public concern for those more sustainability minded, but they also clash with deadlines outlined in the bill.
As we are ever closer to having legislative backing for new the implementation of new technologies, having a clear understanding of your current situation is critical. Get in touch with us at SHIFT if you want to ensure your company’s stats and figures are recent and relevant so you’re able to prepare for the fast-approaching future.