The Energy Act 2023, which has been called the “biggest piece of energy legislation in the UK’s history”, received Royal Assent yesterday (26 October).
The Act, which has now become law, includes a number of major changes aimed at creating a more efficient energy system that can uphold the growing number of electrified technologies being added as the nation moves towards impending net zero targets.
One of the key aspects of the Act is its intention to increase competition in GB’s onshore electricity networks via a newly introduced tender process. According to the government, this will reduce costs for network operation and development and save consumers up to £1 billion off their energy bills by 2050.
Other key changes made via the Act include a specific merger regime for energy networks that will also be created under the Competition and Markets Authority, new measures for Energy Smart Appliances, an expansion of Ofgem’s merit to heat networks and new consumer protections and frameworks.
“The Energy Act is the largest piece of energy legislation in a generation. It will boost investment in clean energy technologies and support thousands of skilled jobs across the country,” said Energy Security Secretary Claire Coutinho.
“It lays the foundations for greater UK energy independence, making us more secure against tyrants like Putin, and helps us to power Britain from Britain.
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