Energy Act 2013
Official Summary
To make provision for or in connection with reforming the electricity market for purposes of encouraging low carbon electricity generation or ensuring security of supply; for the establishment and functions of the Office for Nuclear Regulation; about the government pipe-line and storage system and rights exercisable in relation to it; about the designation of a strategy and policy statement; for the making of orders requiring regulated persons to provide redress to consumers of gas or electricity; about offshore transmission of electricity during a commissioning period; for imposing further fees in respect of nuclear decommissioning costs; and for connected purposes.
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Overview
This bill, a disagreement between the House of Lords and the House of Commons regarding the Energy Bill, centers on whether existing power generating stations should be required to install pollution abatement equipment. The Lords sought to mandate this, while the Commons rejected the proposal.
Description
The Lords Amendment
The House of Lords proposed an amendment (Amendment No. 105) to the Energy Bill. This amendment would have required existing power generating stations to install substantial pollution abatement equipment to reduce emissions of sulphur oxides, nitrogen oxides, heavy metals, and particles. This would have triggered an "emissions limit duty".
The Commons Disagreement
The House of Commons disagreed with the Lords' amendment. Their reasoning was that it's inappropriate to retroactively apply the emissions limit duty to existing power stations by forcing the installation of new pollution control equipment.
Government Spending
The bill itself doesn't directly involve government spending figures. However, the Lords' amendment, if passed, could have led to significant costs for power generating companies to install the required equipment, potentially impacting government revenues through changes in energy pricing or potential subsidies.
Groups Affected
- Existing Power Generating Stations: The Lords' amendment would have directly impacted these stations, requiring substantial investment in new equipment. The Commons' rejection protects them from these costs.
- Energy Consumers: Depending on how the costs of installing the equipment were managed, energy consumers might have seen increased prices if the Lords' amendment passed.
- Environment: The Lords' amendment aimed to improve air quality, while the Commons' decision maintains the status quo regarding emissions from existing plants.
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