Draft energy bill published
The Department for Energy and Climate Change has published the draft text of a much-discussed energy bill.
The bill sets out plans for a feed-in tariff with Contracts for Difference (CfDs for some types of generation and a capacity market. Both will be administered by National Grid, as "independent System Operator".
In addition an Emissions Performance Standard will prevent construction of new coal plants which emit more than 450g/kWh of carbon.
Energy secretary Ed Davey said that energy bills would increase over the coming years, but "electricity market reforms will help to reduce the amount".
A separate strategy on the role of gas will be published in autumn 2012.
Decc said the bill had been introduced in draft to allow pre-legislative scrutiny, saying it would speed up its passage through Parliament and ensure for more robust legislation. Decc said the Bill, once introduced into Parliament, is expected to achieve Royal Assent in 2013, so that the first low-carbon projects can be supported in 2014.
All of the policies in EMR extend to Scotland and Wales. Energy policy is devolved to the Northern Ireland Executive which has agreed that extension of CfD, FID Enabling and EPS provisions will apply to Northern Ireland.
The draft Energy Bill also contains proposals to:
Create an independent, industry financed statutory regulator, the Office for Nuclear Regulation;
Enable the sale of a Ministry of Defence asset, the Government Pipeline and Storage System (GPSS)
Introduce a Strategy and Policy Statement which would set out the Government's strategic priorities for the energy sector in Great Britain, describe the roles and responsibilities of bodies who implement or are affected by GB energy policy and describe policy outcomes which are to be achieved by the regulator and the Secretary of State when regulating the sector.
Further details here.
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