Overview

The Energy Prices Bill aims to control energy prices and encourage efficient energy use and supply in response to the energy crisis. It establishes schemes to reduce both domestic and non-domestic energy bills across Great Britain and Northern Ireland, and grants the Secretary of State broad powers to provide further support for energy costs.

Description

The bill introduces several key measures:

• Domestic Energy Price Reduction Schemes: The Secretary of State can create schemes to reduce electricity and gas prices for households in Great Britain and Northern Ireland. These schemes involve payments to energy suppliers to offset price reductions passed on to consumers.
• Non-Domestic Energy Price Reduction Schemes: Similar schemes are established for non-domestic customers (businesses etc.), potentially calculated based on the difference between actual and notional wholesale energy prices.
• Support for Energy Costs: The Secretary of State is given broad powers to provide financial and other assistance to meet energy costs, promote efficient energy use and encourage energy supply. This includes a £100 million spending limit per project, subject to parliamentary approval, with exceptions for urgent situations.
• Temporary Requirement for Electricity Generators to Make Payments: The Secretary of State can require electricity generators to make payments to an administrator, to fund energy price reductions for consumers.
• Pass-Through Requirements: The Secretary of State can mandate that the benefit of any energy price support is passed on to end-users by a specified time.
• Regulation of Energy Markets: The Secretary of State can modify energy licences and give directions to various bodies (including the Northern Ireland Regulator) in response to the energy crisis.

Government Spending

The bill authorizes significant government spending. While specific figures aren't explicitly stated in the bill, the £100 million limit per project under section 13 (for support for meeting energy costs) suggests substantial potential expenditure. The actual cost will depend on the scale of the schemes established and other support measures implemented.

Groups Affected

• Households: May benefit from reduced domestic energy bills through government-funded price reduction schemes.
• Businesses: May benefit from reduced non-domestic energy bills.
• Energy Suppliers: Will be involved in the administration of the price reduction schemes, receiving payments from the government to cover reductions. They will also be subject to requirements to pass on benefits to customers.
• Electricity Generators: Could be required to make payments to fund consumer price reductions.
• Government: Will bear the financial burden of the price reduction schemes and other support measures.
• Regulators: Will have roles in overseeing and enforcing the schemes and regulations. The Northern Ireland Regulator is specifically mentioned in the bill.

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