Overview

The Energy Prices Bill aims to control energy prices and encourage efficient energy use and supply in response to the energy crisis. It introduces schemes to reduce domestic and non-domestic energy bills across the UK, provides support for energy costs, and grants the Secretary of State broad powers to manage the energy market.

Description

The bill establishes schemes to reduce energy bills for both domestic and non-domestic customers in Great Britain and Northern Ireland for both electricity and gas. These schemes involve government payments to energy suppliers to offset price increases. The bill also empowers the Secretary of State to provide additional support for energy costs and infrastructure, potentially through financial aid or direct intervention. A temporary requirement for electricity generators to make payments to a payment administrator is included to fund these measures. The bill mandates that the benefits of price reductions and support are passed on to end-users. The Secretary of State is given broad powers to modify energy licenses and issue directions to various entities, including regulators, to address the energy crisis. Specific time limits are imposed on the exercise of certain powers, mostly ending within two to three years.

Key Aspects:

• Price reduction schemes for domestic and non-domestic energy (electricity and gas).
• Government support for energy costs and infrastructure.
• Temporary levy on electricity generators.
• Requirement for energy price support to reach end users.
• Significant powers for the Secretary of State to modify energy market regulations.
• Time limits on many of the bill's provisions.

Government Spending

The bill does not specify exact figures for government spending. However, section 14 limits expenditure on any single project under section 13(2) to £100 million unless a resolution of the House of Commons authorizes more. The actual cost of the domestic and non-domestic energy reduction schemes will vary depending on wholesale energy prices and participation rates of energy suppliers. Substantial further spending is expected across the board.

Groups Affected

• Domestic energy consumers: Could experience reduced energy bills.
• Non-domestic energy consumers: Could see lower energy costs.
• Energy suppliers: Will receive government payments and will be subject to new regulations and requirements.
• Electricity generators: May be required to make payments to the payment administrator.
• Government: Will incur significant costs to fund the schemes and support measures.
• Regulators (e.g., Ofgem, Northern Ireland Regulator): Will have new responsibilities and be subject to Secretary of State directions.

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