Overview

This bill mandates a government and Ofgem review of the UK electricity transmission grid and its charging system. The review aims to optimize the grid for renewable energy, improve charging fairness, and minimize price fluctuations for consumers.

Description

The bill requires the Secretary of State to conduct a review of the electricity transmission grid and its associated charges. This review must consider:

• Optimal grid design: The review will assess the best way to modernize the grid to efficiently handle renewable energy sources.
• Necessary infrastructure upgrades: The review will identify needed upgrades and the fairest way to fund them.
• Charging system reform: The review will examine charges for grid connection, specifically looking at geographic location-based differentials and their potential abolition. It will also assess how the current system incentivizes renewable energy generation and minimizes price volatility for consumers.
• International comparisons: The review will study charging regimes in other EU countries.
• Electricity imports: The review will analyze the impact of the current charging system on electricity imports.

The review must include representatives from Ofgem, UK and devolved governments, renewable energy providers, and consumers. A report with recommendations must be submitted to Parliament within one year of the bill's passage. The Secretary of State and Ofgem must then take reasonable steps to implement the recommendations.

Government Spending

The bill doesn't specify direct government spending figures. However, it could lead to significant investment in grid infrastructure based on the review's recommendations. The cost of this investment is not currently defined.

Groups Affected

• Electricity generators and suppliers: May face changes to grid connection charges and incentives.
• Consumers: Could see changes in electricity prices, potentially lower prices due to increased renewable energy and reduced price volatility.
• Renewable energy providers: May benefit from changes incentivizing renewable energy generation.
• Ofgem: Will play a key role in the review and implementation of its recommendations.
• UK and devolved governments: Will participate in the review and be responsible for implementing any resulting changes to policy and legislation.

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