Overview

This bill aims to boost local electricity supplies by allowing electricity generators to also become local suppliers, subject to licensing and environmental conditions. It seeks to increase competition and potentially lower energy costs for consumers.

Description

The Local Electricity Bill enables electricity generators (as defined in the Electricity Act 1989) to become local electricity suppliers. To do so, they must obtain a "local electricity supply licence" from the Gas and Electricity Markets Authority (the Authority).

Licensing and Conditions: The Authority will set the conditions for these licences, including designated local areas. Before specifying these areas, the Authority must consult relevant local authorities, existing suppliers, interested parties, and others with relevant interests. The Authority must also ensure that licensing fees are proportionate and conditions are straightforward. Licensed suppliers cannot emit more than 350 grams of CO2 equivalent per kilowatt-hour (excluding district heating).

Amendments to the Electricity Act 1989: The bill amends the 1989 Act to add a new category of licence for local electricity supply and grants the Authority the power to issue and regulate these licences.

Government Spending

The bill doesn't directly specify any government spending figures. The cost to the government will likely be related to the administrative burden on the Gas and Electricity Markets Authority in processing applications and regulating the new licensing scheme.

Groups Affected

• Electricity Generators: Could benefit from new revenue streams and increased market share.
• Consumers: May see lower energy prices and more localized energy supply, depending on market response.
• Existing Electricity Suppliers: May face increased competition.
• Local Authorities: Will be consulted on licence conditions and designated areas.
• Gas and Electricity Markets Authority: Will be responsible for administering the new licensing scheme.
• Environment: The bill aims to encourage lower-carbon electricity generation through its emission limits.

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