The Government are introducing legislation to support the production of British energy in the UK, boosting the economy and supporting skilled British jobs whilst we continue to transition to net zero.
The Bill will require, by law, annual licensing rounds for oil and gas exploration in the North Sea so companies have the certainty they need to support energy production in the UK, supporting thousands of jobs and securing British energy.
The Act will deliver a more efficient energy system in the long-term, helping to keep energy costs low. It will do this by increasing competition in Great Britain’s onshore electricity networks, through a new tender process – reducing costs for network operation and development. This new model is expected to save consumers up to £1 billion off their energy bills by 2050.
The Government are taking decisive action to ensure we are utilising our domestic resources, limiting high emissions from importing such resources and reducing reliance on dictators like Putin in the long-term.
While we side with the British people and shield families from spiking energy costs, Sir Keir Starmer’s Labour Party oppose our pragmatic approach to net zero by pledging to turn off the taps too soon, threatening 200,000 good jobs across the UK along with billions of pounds of tax revenue.
A specific merger regime for energy networks will also be created under the Competition and Markets Authority. This will minimise the risk of mergers between energy network companies having detrimental effects on consumers and is estimated to save households up to £420 million over the next decade.
There are also new measures for Energy Smart Appliances to prioritise safety and give consumers the confidence to transition to smart products, helping them to manage their energy consumption and reduce their bills. A smart electricity system could reduce system costs by up to £10 billion a year by 2050.
The government is also introducing a licensing framework for CO2 transport and storage to help deliver the UK’s first carbon capture sites – supporting up to 50,000 jobs by 2030.
Energy Security Secretary, Claire Coutinho said:
"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.
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.
The Act also supports our new approach to make sure that families don’t feel a disproportionate financial burden as we transition to net zero, and forms a central part of our efforts to keep people’s bills affordable in the long-term."
Minister for Nuclear and Networks, Andrew Bowie said:
"The Energy Act is a statement of intent to support a flourishing British nuclear and low-carbon energy sector.
It will help create of thousands of skilled jobs and deliver real benefits for people across the UK – from cleaner energy to affordable bills.
The government has listened to industry and modernised our energy legislation, creating the framework for further green growth."
