Overview

This bill mandates the UK Secretary of State to create and implement a strategy to significantly reduce national energy demand across electricity, gas, and other fuels by specific targets within set timeframes. The aim is to achieve substantial reductions in energy consumption by 2020 and 2030.

Description

The Energy Demand Reduction Act 2014 compels the Secretary of State to develop a comprehensive strategy for decreasing energy demand within the UK. This strategy must outline cost-effective policies to meet the following reduction targets:

• Electricity: At least 69 TWh by 2020 and a further 32 TWh by 2030.
• Gas: At least 74 TWh by 2020.
• Oil, coal, and other fuels: At least 53 TWh by 2020.

The Secretary of State is also required to implement this strategy. The Act applies to England and, pending agreement with the Welsh Assembly Government, to Wales.

Government Spending

The bill doesn't specify the exact amount of government spending required. The cost will depend on the specific policies included in the demand reduction strategy. Funding will likely involve a combination of government investment in energy efficiency programs, potential subsidies for consumers adopting energy-saving technologies and measures, and potentially increased taxation in areas related to energy consumption. Precise figures are not provided in the bill itself.

Groups Affected

This bill will affect numerous groups:

• Energy Suppliers: May face challenges in meeting reduced demand targets and could experience shifts in their business models.
• Consumers: May experience changes in energy prices and may be encouraged to adopt energy-efficient practices and technologies.
• Businesses: Will be influenced by the implemented policies and may need to adapt their energy consumption practices.
• Government Agencies: Responsible for developing, funding, and overseeing the implementation of the strategy.
• Environmental Groups: Will be impacted by the success or failure of the policy in reducing carbon emissions.

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