Overview

This bill aims to restrict government subsidies for new off-shore wind farms in England. It proposes to limit subsidies to the prevailing wholesale electricity price, effectively ending additional financial support beyond the market rate for electricity generated.

Description

The Off-Shore Wind Farm Subsidies (Restriction) Bill limits government payments for off-shore wind farms in England. Specifically:

• Subsidy Cap: No government department or agency can make payments exceeding the current wholesale electricity price for electricity from off-shore wind farms.
• Scope of Restriction: The bill covers subsidies for the construction, development, and operation of off-shore wind farms.
• Exemption: The restrictions do not apply to wind farms already operational before the bill becomes law.
• Geographic Limitation: The bill only applies to England.
• Effective Date: The bill comes into effect two months after parliamentary approval.

Government Spending

The bill is expected to reduce government spending on subsidies for new off-shore wind farms in England. The exact amount is difficult to predict without detailed analysis of current subsidy programs and future wind farm development plans. The reduction will be significant, but quantifiable figures are not included in the bill text itself.

Groups Affected

The bill will affect several groups:

• Off-shore Wind Farm Developers: This bill will significantly impact their profitability and the feasibility of new projects, potentially reducing investment in this sector.
• Electricity Consumers: Potentially less new wind farm generation could lead to higher electricity prices in the long term if other generation methods are used to meet increased electricity demand.
• Government: Reduced financial commitments from the government, leading to potential savings to the public purse.
• Environmental Groups: Potentially negative impact on the achievement of renewable energy targets and the transition to cleaner energy.

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