New energy bill introduced to protect consumers

The UK government has introduced a landmark Energy Prices Bill, putting into law support to help households, businesses and others with energy costs this winter, while reducing inflation and supporting economic growth.

The bill also includes powers to stop volatile and high gas prices dictating the cost of electricity produced by much cheaper renewables and a new “Cost-Plus-Revenue Limit” that will ensure consumers are not paying significantly more for electricity generated from renewables and nuclear.

The Energy Prices Bill, introduced in Parliament on 12 October 2022, provides the legislative footing needed to ensure that people and businesses across the UK receive support with their energy bills this winter through the Energy Price Guarantee for domestic consumers and Energy Bill Relief Scheme for businesses and non-domestic properties. This includes essential measures that enable the UK government to deliver comparable schemes in Northern Ireland and legislation that will require landlords and heat network operators to pass benefits through to tenants.

Low-carbon electricity generation from renewables and nuclear will be key to securing more low-cost homegrown energy and the government said it is supporting continued investment in the sector, including through The Growth Plan.

Currently in the UK market, wholesale electricity prices are set by the most expensive form of generation — presently gas-fired generation, which is significantly higher in light of Russia’s appalling invasion of Ukraine and Vladimir Putin’s subsequent weaponisation of gas supplies. Low-carbon electricity generators are therefore benefiting from abnormally high prices, while consumers are having to pay significantly more for energy generated from renewables and nuclear, even though they often cost less to produce.

Source Financial Accountant click here to read more.

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