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 create more localized energy markets and potentially increase competition.

Description

The Local Electricity Bill modifies the Electricity Act 1989 to permit electricity generators (as defined in the 1989 Act) to act as local electricity suppliers. This requires obtaining a "local electricity supply licence" from the Gas and Electricity Markets Authority (Authority).

Licensing and Conditions

The Authority will grant licences based on set conditions, including a cap on carbon dioxide emissions (350g CO2e/kWh, excluding district heating). The Authority must consult relevant parties before setting licence conditions and designated local areas, ensuring fees are proportionate to business size and conditions are straightforward.

Authority's Role

The Authority is responsible for issuing licenses, setting conditions, defining designated local areas, and consulting relevant stakeholders. It has a duty to ensure that application fees are proportionate and that license conditions are simple and clear.

Government Spending

The bill doesn't directly specify government spending. The impact on government spending is likely indirect, potentially relating to the Authority's operational costs in managing the new licensing scheme and enforcement.

Groups Affected

• Electricity Generators: Potentially benefit from new revenue streams and increased market access.
• Local Authorities: Will be consulted on licensing and designated areas, influencing local energy provision.
• Consumers: May see changes in electricity prices and supply depending on increased competition from local suppliers.
• Gas and Electricity Markets Authority (Authority): Will have increased responsibilities in managing the new licensing scheme.
• Existing Electricity Suppliers: May face increased competition from new local suppliers.

Powered by nyModel