Energy Act 2023

Energy Act 2023 comes into law

The Energy Act 2023 has received its royal assent making the largest piece of energy legislation in UK history enshrined into law.

The act includes a new tender process to increase competition in Britain’s onshore electricity networks, which will cut costs for network operation and development. It is anticipated the new model will save consumers as much as £1bn by 2050.

A specific merger regime for energy networks will also be established under the Competition and Markets Authority to minimise the risk of mergers negatively impacting consumers – this is expected to save households up to £420m over the next 10 years.

New measures for energy smart appliances will give people the confidence needed to transition to smart products, ultimately helping them manage their consumption better and reduce overall bills. The government has indicated a smart electricity system has the potential to reduce costs by £10bn annually by 2050.

Ofgem’s remit has also been updated to encompass heat networks, enabling the regulator to rule on excessive pricing and enhance service quality for half a million people. Net zero goals will be a daily consideration for Ofgem under the new act.

The heating industry will be incentivised to invest in low-carbon heat pumps under the act, via new consumer protections and frameworks.

Up to 50,000 jobs will be supported by a new CO2 transport and storage framework, which will help deliver the UK’s first carbon capture sites.

Developers will be encouraged to drive forward plans after the act also makes the UK the first country to legislate for fusion regulation.

The introduction of a new independent body will give consumers access to a secure and decarbonised energy supply too – the Future System Operator will look to ensure systems in the gas and electricity network develop efficiently.

“The Energy Act is the largest piece of energy legislation in a generation,” said Claire Coutinho, the energy security secretary. “It will boost investment in clean energy technologies and support thousands of skilled jobs across the country.”

Minister for nuclear and networks, Andrew Bowie, added: “The government has listened to industry and modernised our energy legislation, creating the framework for further green growth.”

Image credit: iStock

PSE

PSE April/ May 2024

Alarming decline in UK costal water quality

Dive into our latest edition for April/May 2024!

 

More articles...

View all
Online Conference

Presenting

2024 Online Conferences

In partnership with our community of public sector leaders responsible for procurement and strategy across local authorities and the wider public sector, we’ve devised a collaborative calendar of conferences and events for leaders of industry to listen, learn and collaborate through engaging and immersive conversation.

All our conferences are CPD accredited, which means you can gain points to advance your career by attending our online conferences. Also, the contents are available on demand so you can re-watch at your convenience.

Public Sector Executive Podcast

Listen to industry leaders on everything within the public sector

From government policies and public administration to education, healthcare, and infrastructure, we explore the challenges and innovations shaping our communities.

 

Join us as we speak with industry leaders, policymakers, and frontline professionals, providing you with valuable insights and perspectives to stay informed and engaged with the issues that matter most.