In its report on the Government’s
draft Energy Bill in November this year, 2012, the Parliamentary Information
Office published details of the Government’s long-awaited Energy Bill.
Subject to Parliament, the Energy
Bill is expected to achieve Royal Assent in 2013, so that Electricity Market
Reform (EMR) is fully up and running in 2014 as planned. The Bill has undergone
a period of pre-legislative scrutiny by the ECC Select Committee since it was
published in draft in May 2012.
All provisions in this Bill
extend to England and Wales, and the majority will also extend to Scotland (apart
from Clause 119 – Nuclear decommissioning costs). A number of provisions also
extend to Northern Ireland.
The Energy Bill sets out measures
to reform the electricity market, in order to keep the lights on, bills down
and to reduce emissions.
The Bill was debated by MPs from
noon on 19th December 2012 as it was introduced for its 2nd reading in
Parliament.
On the eve of the debate,
Secretary of State Edward Davey said:
“The Coalition Government is
proposing a once-in-a-generation transformation of the electricity market from
fossil-fuel dependency to low-carbon diversity.
“The Energy Bill will bring about
a renaissance in our energy sector, providing the certainty companies need to
invest a record £110 billion to upgrade our ageing power stations.
“This will support our economic
recovery, resulting in thousands of new jobs in every nation and region of the
UK.
“It will enable us to keep the
lights on and to keep bills affordable for consumers, whilst leading to a significant
decarbonisation of the power sector in order to meet our climate targets.
“To further support emission
reductions in the power sector, we will take additional powers in the Bill to
set a decarbonisation target range for 2030. A decision to exercise this power
will be taken once the Climate Change Committee has provided advice in 2016 on
the 5th Carbon Budget which covers the corresponding period.
“In addition, we will limit the
bamboozling array of energy tariffs suppliers provide to four tariffs per fuel type.
This will help to move millions of households on to better energy deals.
“Ofgem as independent regulator
will be given more teeth, with energy companies required to pay compensation to
consumers as well as to the regulator if they breach the terms of their licence
conditions.
“New players will be encouraged
into the electricity market through measures we have added to promote
competition and liquidity.
“And we will further strengthen
this Bill by adding proposals to promote energy efficiency and electricity demand
reduction.
“This Bill provides the radical
reforms Britain needs to secure energy infrastructure that is fit for the 21st
Century.
“It is good for consumers, good
for the economy and good for the environment”.
The Bill has now been sent to
Public Bill Committee. The first sitting of the committee will be on a date to
be announced.
The Bill was debated at second
reading on 19 December 2012. The House of Commons voted for the Bill to be sent
to a Public Bill Committee that will scrutinise the Bill line by line.
The Committee is expected to
report by 12 February 2013.
Summary of the Bill
To make provision for or in
connection with reforming the electricity market for purposes of encouraging
low carbon electricity generation or ensuring security of supply; for the
establishment and functions of the Office for Nuclear Regulation; about the
government pipe-line and storage system and rights exercisable in relation to
it; about the designation of a strategy and policy statement; for the making of
orders requiring regulated persons to provide redress to consumers of gas or
electricity; about offshore transmission of electricity during a commissioning
period; for imposing further fees in respect of nuclear decommissioning costs;
and for connected purposes.
The Parliamentary Information
Office of the Parliamentary Yearbook will continue to report on the progress of
the bill as we go through the months ahead.
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