Overview

This bill mandates a government and Ofgem review of the UK electricity transmission grid and its associated charges. The review aims to optimize the grid for clean energy generation, improve infrastructure, ensure fair charging, and minimize price fluctuations for consumers.

Description

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

• The ideal modern grid for efficient, clean energy production.
• Necessary grid upgrades, investment, and fair charging methods.
• Charges for grid connection, especially those varying by location (with a view to abolishing such differentials).
• Incentivizing renewable energy generation in optimal locations.
• Minimizing consumer price increases due to charge fluctuations.
• Charging systems in EU countries.
• Incentives for electricity imports via interconnectors.

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

Government Spending

The bill doesn't specify direct government spending but will likely incur costs associated with the review process itself (e.g., staffing, research, and report publication). The implementation of recommendations could lead to substantial future investment in grid infrastructure, though the funding sources are not detailed in the bill.

Groups Affected

• Electricity Generators and Suppliers: May face changes to connection charges and regulations.
• Consumers: Could see changes in electricity prices depending on the review's outcome, aiming towards reduced price volatility.
• Renewable Energy Providers: Potentially benefit from changes incentivizing renewable energy generation.
• Ofgem: Responsible for conducting the review and implementing recommendations.
• UK and Devolved Governments: Responsible for overseeing the review and subsequent policy changes.

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