Overview

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

Description

The Local Electricity Bill modifies the Electricity Act 1989. It introduces the concept of "local electricity suppliers," enabling electricity generators (as defined in the 1989 Act) to supply electricity locally. This requires obtaining a "local electricity supply licence" from the Authority.

Licensing and Conditions

The Authority will grant licenses based on specified conditions, which it must set. These conditions and the designated local areas are subject to consultation with relevant local authorities, existing suppliers, interested parties, and others the Authority deems relevant. The Authority must also ensure application fees are proportionate to business size and that licence conditions are straightforward.

Government Spending

The bill doesn't directly specify government spending. However, the Authority's administrative costs associated with licensing and regulation may increase. Conversely, the bill could indirectly reduce government spending if it leads to increased competition and lower electricity prices.

Groups Affected

The bill will affect several groups:

• Electricity Generators: They gain the opportunity to become local suppliers, potentially increasing their revenue streams.
• Local Authorities: They will be consulted on licensing decisions, influencing local supply arrangements.
• Existing Electricity Suppliers: They may face increased competition from new local suppliers.
• Consumers: Potentially benefit from increased competition, potentially leading to lower prices or improved service, although this is not guaranteed.
• The Gas and Electricity Markets Authority: Takes on the responsibility of licensing and regulating local electricity suppliers.

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