Overview

This bill aims to boost local electricity supplies by allowing electricity generators to also become local electricity suppliers, subject to licensing and regulation by the Gas and Electricity Markets Authority (Ofgem).

Description

The Local Electricity Bill amends the Electricity Act 1989 to create a new type of licence: the "local electricity supply licence".

This licence will permit electricity generators to supply electricity within a designated local area. The Gas and Electricity Markets Authority (Ofgem) will be responsible for granting these licences, setting the conditions for them, and defining the specific geographical areas covered.

Licence Conditions and Consultation: Ofgem must establish conditions for these licences, ensuring that application fees are proportionate to business size and that the licence conditions are as straightforward as possible. Before specifying a designated local area, Ofgem must consult with relevant local authorities, existing suppliers, interested parties, and others with a relevant interest.

Government Spending

The bill doesn't directly specify government spending. The cost of Ofgem's administration of the new licensing scheme will likely increase, but the exact figure is not included in the bill.

Groups Affected

• Electricity Generators: Potentially benefit from new revenue streams by becoming local suppliers.
• Consumers in designated local areas: May see changes in electricity prices and suppliers.
• Existing Electricity Suppliers: May face increased competition.
• Local Authorities: Will be consulted on the designation of local areas.
• Gas and Electricity Markets Authority (Ofgem): Will have new responsibilities for licensing and regulation.

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