Overview

The Local Electricity Bill aims to boost local electricity generation and supply by allowing electricity generators to also become local suppliers, subject to licensing and regulation by the Gas and Electricity Markets Authority (GEMA).

Description

This bill amends the Electricity Act 1989 to create a new category of electricity supplier: the "local electricity supplier".

• Eligibility: Existing electricity generators can apply for a license to become local electricity suppliers.
• Licensing: The Gas and Electricity Markets Authority (GEMA) will grant licenses, setting conditions which must be proportionate to the size of the applicant's business and as simple as possible.
• Geographic Scope: GEMA will define specific geographic areas ("designated local areas") for each supplier's operations. Consultation with local authorities, existing suppliers and interested parties is required before setting these areas and the associated licence conditions.
• Conditions: License conditions will be set by GEMA and will ensure compliance with relevant regulations.
• Consultation: GEMA must consult various stakeholders (local authorities, existing suppliers, and interested parties) before specifying designated local areas and conditions.

Government Spending

The bill doesn't directly specify government spending. The administrative costs of implementing the changes, such as GEMA's work in licensing and regulation, would be the main financial implications. No specific figures are provided in the bill.

Groups Affected

• Electricity Generators: Could benefit from expanded business opportunities by supplying electricity locally.
• Local Authorities: Will be consulted on the designation of local areas and will have a role in ensuring the local impact of new suppliers.
• Gas and Electricity Markets Authority (GEMA): Will have increased responsibilities in licensing and regulating local electricity suppliers.
• Consumers: May benefit from increased competition and potentially lower prices in their local areas, but the actual impact remains uncertain.
• Existing Electricity Suppliers: May face increased competition from new local suppliers.

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