Government’s Energy Bill to drive gas supply security: Queen’s Speech

The government’s legislative plan for the next five years will include an energy bill designed to strengthen security of gas supply by bolstering the role of the oil and gas authority (OGA), according to the Queen’s speech.

The Energy Bill will include measures to devolve regulatory powers to the OGA so it can become a “robust, independent and effective regulator”, capable of maximising the economic recovery of the UK’s dwindling reserves.

A parliamentary statement said the bill will formally establish the OGA as an independent regulator, with powers over the industry to be devolved from the Secretary of State to the new regulator. This approach should increase industry collaboration, drive down costs for consumers and help prolong the life of the UK’s continental shelf reserve to boost security of supply.

The UK is already a net importer of gas due to a steady decline in domestic sources, with an increasing reliance on imports from the Middle East and Russia. Centrica said earlier this month it has increased its reliance on Russian gas by 75 per cent in order to meet half of the UK’s 70 billion cubic metre per year demand.

The Energy Bill will also devolve the planning regulation regarding onshore wind consent, in line with pledges made by newly appointed Energy Secretary Amber Rudd.

The bill will remove the need for approval from the Secretary of State for wind farms larger than 50MW, with the decision to lie with the local planning authority. This legislation will sit alongside separate measures designed to halt subsidies for new projects, which Rudd has previously outlined.

The parliamentary note said that the Department of Energy and Climate Change will be announcing measures to cut onshore wind payouts soon.