Energy UK calls for new bill to deliver climate commitments

Energy UK has called for the inclusion of a new legislation in the Queen’s speech on Tuesday (10 May) to set the foundations for the energy system over the next decade.

The organisation said there has been no major energy legislation since 2013, during which time the sector has changed dramatically. It said a new Energy Bill is now needed to put in place the necessary framework and powers to deliver on the government’s commitments to decarbonise the power grid by 2035 and the entire economy by 2050.

The trade association said this challenge has been given even greater urgency by record high global energy prices, which have underlined the need for the UK to establish secure suppliers through the growth of clean domestic generation and production.

Energy UK said the new bill should focus on three priorities:

• Securing low-carbon investment and creating green jobs through the expansion of new and developing technologies like carbon capture and storage, hydrogen, energy storage and heat pumps; putting in place the necessary infrastructure such as transmission and grid connections to support this expansion; and by moving policy costs off bills to encourage consumer adoption of these new technologies.
• Delivering value to energy consumers through stronger regulations to improve energy efficiency in new and existing buildings and make them fit for the future by equipping them with smart meters, low-carbon heating options and electric vehicle charging points; removing existing planning barriers; addressing gaps in consumer protections in relation to heat networks and third-party intermediaries; and creating a sustainable stable retail market that can support customers through the adoption of new technologies.
• Establishing a low-carbon governance framework so that government and regulatory bodies have the necessary powers and obligations to drive change quicker as part of a coordinated and comprehensive approach to meeting the 2050 net zero target.

Dhara Vyas, director of advocacy at Energy UK, said: “The energy sector has undergone a huge transformation in the decade since the last Energy Bill and has the potential to go much further and faster towards a clean, modern and flexible system – with tangible benefits for customers, our economy and our environment.

“With record energy bills at present, resulting from unprecedented international gas prices, we must seize this opportunity to expand our own sources of domestic, clean energy along with encouraging the widespread adoption of low carbon technologies.

“This country now has a raft of ambitious targets in place and the focus must now be on delivering these. We can only do this with a bill that enables our sector to do what we need to do now and deliver on the full potential of the future energy system – so that progress isn’t being blocked by outdated legislation and regulations drawn up for a different time.

“A new Energy Bill should create a framework for a low-carbon future. The energy industry is ready to deliver.”