The UK government is to publish an Energy Bill that will enable the country to its net zero goals, according to the Queen’s Speech.
The Energy Bill will, among other measures, establish a new Future System Operation to take over the functions of National Grid ESO and have a wider remit to provide “strategic oversight across electricity and gas systems (and) drive progress towards net zero, energy security and minimising consumer costs”.
Ofgem chief executive Jonathan Brearley said: “At a very difficult and pivotal time for consumers up and down the country, the Energy Bill provides a clear direction of travel to boost our clean home-grown energy, reduce reliance on global fossil fuels, and drive us towards a secure and carbon neutral future.
“As laid out today, Ofgem is ready to play our role in this, helping to create and invest in the infrastructure for net zero to thrive, building robust local energy systems and spearheading innovative technologies such as carbon capture and storage.
“We look forward to working with government and wider industry and NGO partners to make the proposals laid out today a reality.”
Another relevant bill included in the Queen’s Speech is the Levelling Up and Regeneration Bill to reform the planning system,
Responding to the Queen’s Speech Dan McGrail, CEO of RenewableUK, said: “It’s vital that new legislation announced in the Queen’s Speech enables us to build cheap new renewable energy more quickly, as speed is key to boosting home-grown energy and cutting bills for consumers.
“Government has put low carbon power at the heart of Britain’s Energy Security Strategy, including a target of quadrupling offshore wind by 2030, so we need to ensure that the frameworks for planning and connecting new energy projects supports this target, as well as longer-term growth needed for net zero.”
Energy UK’s director of advocacy, Dhara Vyas, added: “It’s vital to have the legislation and frameworks in place that will enable delivery of the ambitious targets set out in the Prime Minister’s Ten Point Plan and Energy Security Strategy.
“We can help customers by reducing the dependence on expensive fossil fuels that is leading to record energy bills right now through expanding sources of domestic clean power and supporting the development of low carbon technologies like Carbon Capture Usage and Storage and Hydrogen on the production side, as well as those in the home like heat pumps – which will also boost our economy, create new jobs and help us reach our climate change targets.”
Also announced in the Queen’s Speech is the UK Infrastructure Bank bill, which trade union GMB said is a “great opportunity” to stop UK renewables jobs going overseas.
The UK infrastructure bank will mete out public subsidies to support major projects.
GMB expects part of its new statutory remit it would include powers to ensure support for UK content and supply chains is a factor.