Overview

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

Description

The Local Electricity Bill modifies the Electricity Act 1989. It introduces "local electricity suppliers," allowing electricity generators (as defined in the 1989 Act) to supply electricity within designated local areas. This requires obtaining a "local electricity supply licence" from the Authority, which will set the licensing conditions and designated areas. The Authority must consult relevant local authorities, existing suppliers, interested parties, and others with an interest before specifying these areas and conditions. The bill mandates that the Authority makes application fees proportionate to business size and keeps licensing conditions straightforward.

Government Spending

The bill doesn't directly specify government spending. However, there will be administrative costs associated with the Authority's new responsibilities, such as processing license applications and consultations. The exact financial impact is unknown without further analysis.

Groups Affected

• Electricity Generators: Potentially benefit from the ability to become local suppliers and sell electricity directly to consumers.
• Local Authorities: Involved in consultations regarding designated areas and could see changes in local energy provision.
• Existing Electricity Suppliers: May face increased competition from local generators.
• Consumers: Could potentially benefit from more diverse and competitive electricity pricing, depending on market forces.
• Gas and Electricity Markets Authority: Takes on additional regulatory responsibilities for licensing and overseeing local electricity suppliers.

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