Industry NewsNew energy legislation has begun its journey through Parliament which is designed to improve the energy efficiency of homes and help reduce the UK's carbon intensity. However, the Energy Bill is already being overshadowed by its successor, due to be unveiled next year, which will bring more wide-reaching market changes.
The new Energy Bill got its first reading in the House of Commons on Wednesday (8 December 2010), and should be enacted at some point in 2011. The main proposals of the legislation is enhanced support and guidance for improving the energy efficiency of domestic small business properties. The suggestions were outlined by the Coalition earlier this year, and some of the plans were also echoed by the Labour party before it lost power. The "Green Deal" includes provisions for the costs of energy efficiency upgrades to be paid for via energy bills, rather than in a single lump sum.
The Bill also plans to provide more incentives for improving security of gas supply, but such steps are focused on extreme situations. The Bill which is being planned to follow this new legislation is expected to be much more wide-ranging and could lead to changes in the core make-up of the UK energy markets. These will ensure that the UK sees the required level of investment over the next few decades to meet low-carbon economy plans, while also ensuring the security of supplies. Further details of these plans are expected soon. Ofgem has reportedly stated it expects these proposals before Christmas.
Commenting on the latest Energy Bill, and highlighting that many feel it is something of a stop-gap, Steve Radley, director of policy at EEF, the manufacturers? association, said, "(The Bill) was the ideal opportunity for the Government to tackle the long-standing issue of gas storage and provide a clear and simple obligation on suppliers to demonstrate they can meet demand in the event of disruption. As it stands, the proposals in the Bill are based on such an unlikely scenario that they are unlikely to change the behaviour of suppliers and encourage greater investment in storage capacity."