Overview

This bill aims to restrict government subsidies for new off-shore wind farms in England. It limits subsidies to the prevailing wholesale electricity price and prohibits other forms of financial support for the construction, development, or operation of new off-shore wind farms.

Description

The Off-Shore Wind Farm Subsidies (Restriction) Bill seeks to limit government funding for off-shore wind farms in England. Specifically:

• Subsidy Restrictions: No government department or agency can provide payments exceeding the current wholesale electricity price for electricity generated by new off-shore wind farms. This also bans other subsidies for their construction, development, or operation.
• Exemptions: The restrictions do not apply to existing off-shore wind farms operational before the bill becomes law.
• Geographical Scope: The bill applies only to England.
• Commencement: The bill comes into effect two months after it receives parliamentary approval.

Government Spending

The bill is expected to reduce government spending on subsidies for off-shore wind farm development in England. The exact figure is not specified in the bill but will depend on the number and scale of projects planned and the difference between the proposed subsidy levels and the prevailing wholesale electricity price.

Groups Affected

• Off-shore Wind Farm Developers: Will likely face reduced profitability due to limited subsidies for new projects. This could lead to fewer new projects being developed or higher electricity prices for consumers to compensate for the reduced subsidies.
• Government: Will experience a reduction in spending on renewable energy subsidies.
• Consumers: May see higher electricity prices if reduced subsidies lead to less competition or increased costs for developers.
• Environmental Groups: May be concerned about the potential impact on the development of renewable energy and the country's carbon reduction targets.

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