Energy Bill passes its final Commons stages

25 February 2010

The Commons passed the report stage and third reading of the Energy Bill, which now moves into the Lords

The Bill

This Bill follows the low carbon transition plan published in July 2009 which aims to cut emissions by 34 per cent from 1990 levels by 2020, and by 80 per cent by 2050, whilst maintaining security of supply, maximising economic opportunities and protecting vulnerable consumers.

Key areas of the legislation:

  • introduces a carbon capture and storage incentive to support the construction of up to four UK demonstration projects, to be chosen in a competition
  • provides for mandatory social price support to reduce energy bills for the most vulnerable. This would replace the current voluntary agreement which expires in 2011
  • increases the powers of the regulator, Ofgem, to deal with exploitation of electricity distribution constraints by generators
  • increases Ofgem’s power to fine companies
  • clarifies Ofgem’s objectives on tackling climate change, ensuring secure energy supplies and the role of measures other than competition in protecting the interests of consumers
  • gives the Secretary of State the power to ban cross-subsidy between gas and electricity accounts

Image: iStockphoto

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