Overview

This bill aims to set legally binding carbon emissions limits for new electricity generating stations in the UK. It mandates the Secretary of State to establish a carbon emissions performance standard, regulating the maximum level of carbon dioxide emissions per unit of electricity produced.

Description

The bill empowers the Secretary of State to create regulations setting a maximum level of carbon dioxide emissions per unit of electricity generated by new power stations needing consent under the Electricity Act 1989. These regulations will detail:

• Compliance methods: How power stations can meet and prove compliance with the standard, including carbon capture and storage if legally permitted.
• Emissions calculations: How carbon dioxide emissions are calculated, especially for combined heat and power stations.
• Exemptions: Which electricity generation sources (e.g., renewables) are deemed compliant.
• Operational compliance: Requirements for ongoing compliance during operation.

No consent for new power stations will be granted unless they meet the set standard. The Secretary of State must consult relevant stakeholders (including electricity generators, users, regulatory bodies, and environmental agencies) before setting and implementing regulations. The regulations themselves must be approved by both Houses of Parliament.

Government Spending

The bill doesn't directly specify government spending. The potential costs will depend on the stringency of the emissions standard set and the measures power companies take to comply. It may lead to increased costs for new power station construction and could potentially influence the overall energy market prices for consumers.

Groups Affected

• Electricity generators: Faced with stricter emissions limits, potentially impacting investment decisions and profitability.
• Electricity consumers: May experience changes in energy prices, depending on the cost of compliance for power generators.
• Environmental groups: Potentially benefit from reduced carbon emissions contributing to climate change mitigation.
• Regulatory bodies (e.g., Gas and Electricity Markets Authority, Environment Agency): Charged with overseeing compliance and enforcement.

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