Energy Act 2023: Transforming the UK’s Energy System for the Future
The Energy Act 2023 has been hailed as a landmark piece of legislation that will revolutionize the UK’s energy system, ensuring affordability for households and businesses while driving the country towards energy independence in the long-term. With Royal Assent granted, the Act is set to unlock £100 billion in private investment in energy infrastructure, creating jobs and accelerating the development of offshore wind projects to meet net zero commitments.
Key provisions of the Act include measures to increase competition in onshore electricity networks, reduce costs for consumers, and establish a merger regime for energy networks to protect consumers from detrimental effects. Additionally, the Act prioritizes safety and consumer confidence in transitioning to smart energy products, with potential savings of up to £10 billion a year by 2050.
The government’s expansion of Ofgem’s remit to heat networks and the introduction of consumer protections for low-carbon heat pumps and smart meters further demonstrate the Act’s commitment to affordability and sustainability. Minister for Nuclear and Networks Andrew Bowie emphasized the Act’s support for a flourishing energy sector and the creation of skilled jobs, while Energy Security Secretary Claire Coutinho highlighted the Act’s role in enhancing energy independence and supporting the transition to net zero.
The Act also includes provisions for carbon capture and storage, fusion regulation, and the establishment of a Future System Operator to ensure a secure and decarbonized energy supply. Industry stakeholders, including Energy UK and Hydrogen UK, have praised the Act for providing long-term certainty and establishing frameworks for investment in the energy sector.
With the Energy Act now in place, Ofgem CEO Jonathan Brearley emphasized the agency’s commitment to driving the energy transition, unlocking investment, and protecting consumers while powering the journey to net zero. National Grid CEO John Pettigrew echoed the sentiment, emphasizing the importance of collaboration between industry, regulators, and government to achieve a clean, fair, and affordable energy system for all.