UK Energy Bill - Major Reform Ahead

(LEXEGESE) The UK Government has reached a "landmark agreement" on energy policy that shall, according UK Energy and Climate Change Secretary, Edward Davey, deliver a clear, durable signal to investors, Astrid Friedrich / With a fifth of the UK’s electricity generating capacity due to close this decade, reforms are needed to provide certainty to investors to bring forward £110 billion investment in new infrastructure. Mr Davey announced a package of decisions around the Energy Bill, which will be introduced this week: The creation of a Government-owned company to act as a single counterparty to give investors confidence to enter into new long term Contracts for Difference for low carbon electricity projects. Powers to introduce a capacity market, allowing for capacity auctions from 2014 for delivery of capacity in the winter of 2018/19, if needed, to help ensure the lights stay on even at times of peak demand. The UK Government is also seeking to provide certainty to gas investors and a Gas Generation Strategy will be published alongside the Chancellor’s Autumn Statement. An amendment during passage of the Bill to take powers to set a decarbonisation target range for 2030 in secondary legislation. A decision to exercise this power will be taken once the Climate Change Committee has provided advice in 2016 on the 5th Carbon Budget which covers the corresponding period. In the meantime, the Government will issue guidance to National Grid setting out an indicative range of decarbonisation scenarios for the power sector in 2030 consistent with the least cost approach to the UK’s 2050 carbon target and reflecting both the existing fourth carbon budget and a scenario in which it is reviewed up, as outlined when the budget was set. The amount of market support to be available for low carbon electricity investment (under the Levy Control Framework) up to 2020 has also been agreed. This will be set at £7 ...Zum vollständigen Artikel

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