The Queen’s Speech last week confirmed plans to publish a draft Energy Bill to reform the UK’s electricity market within the next 12 months.
Announcing the plans, the Queen said: “My Government will propose reform of the electricity market to deliver secure, clean and affordable electricity and ensure prices are fair.”
The legislation aims to enable large-scale investment in low carbon energy generation capacity in the UK, whilst still delivering a cost-effective and secure supply.
The proposals are still being considered but they are likely to include measures for effectively ‘decarbonising’ the electricity sector by 2030 and incentivising the development of more low carbon infrastructure.
Commenting on the announcement, a spokeswoman for the Department of Energy and Climate Change (DECC) described the Energy Bill as “crucial legislation”. She said it will “reform the electricity market to keep the lights on and emissions down in a more cost-effective way, while reaping the economic benefits” and will “provide investors with long-term certainty and incentives to invest in low-carbon”.
A draft version of the Bill will be published for scrutiny by MPs during the new Parliamentary year, and the final version is expected to reach the statute books by late 2013, with the first low carbon projects taking effect in 2014.
For more information, please visit the DECC website.