Energy Act 2013

Last updated

Energy Act 2013
Coat of arms of the United Kingdom (2022, variant 1).svg
Long title An Act to make provision for the setting of a decarbonisation target range and duties in relation to it; for or in connection with reforming the electricity market for purposes of encouraging low carbon electricity generation or ensuring security of supply; for the establishment and functions of the Office for Nuclear Regulation; about the government pipe-line and storage system and rights exercisable in relation to it; about the designation of a strategy and policy statement; about domestic supplies of gas and electricity; for extending categories of activities for which energy licences are required; for the making of orders requiring regulated persons to provide redress to consumers of gas or electricity; about offshore transmission of electricity during a commissioning period; for imposing fees in connection with certain costs incurred by the Secretary of State; and for connected purposes.
Introduced by Ed Davey
Territorial extent England, Wales, Scotland
Dates
Royal assent 18 December 2013
Other legislation
Relates to Energy Act 2010
Status: Amended
History of passage through Parliament
Text of statute as originally enacted

The Energy Act 2013 is an Act of the Parliament of the United Kingdom, relating to the energy sector. It succeeded the Energy Act 2010. The Act focuses on setting decarbonisation targets for the UK, and reforming the electricity market. The Act was intended by Secretary of State for Energy and Climate Change Ed Davey to "attract investment to bring about a once-in-a-generation transformation of our electricity market". [1]

Contents

History

The Energy Bill was introduced by the government in the House of Commons for first reading on 29 November 2012, [2] and passed a vote at third reading with cross-party support on 4 June 2013. The Bill received Royal Assent on 18 December 2013. [3] [4]

Aims

The Act aims to maintain a stable electricity supply as coal-fired power stations are retired. [1] This includes facilitating the building of a new set of nuclear power stations and the establishment of a new regulator, the Office for Nuclear Regulation.

The act proposed a delay in setting decarbonisation targets under the Climate Change Act 2008, until 2016. Businesses and analysts criticised the uncertainty this caused for investors, notably Balfour Beatty [5] and Ernst & Young. [6] Conservative MP Tim Yeo and Labour MP Barry Gardiner tabled amendments to the Bill to reinsert a 2030 decarbonisation target for the power sector by 2014. [7] [8]

The act also enabled the government to privatise the Government Pipelines and Storage System.

See also

Related Research Articles

The Renewables Obligation (RO) was designed to encourage generation of electricity from eligible renewable sources in the United Kingdom. It was introduced in April 2002, both in England and Wales and in Scotland albeit in a slightly different form: the Renewables Obligation (Scotland). The RO was later introduced in Northern Ireland in April 2005. In all cases, replacing the Non-Fossil Fuel Obligation which operated from 1990.

<span class="mw-page-title-main">Energy policy</span> How a government or business deals with energy

Energy policies are the government's strategies and decisions regarding the production, distribution, and consumption of energy within a specific jurisdiction. Energy is essential for the functioning of modern economies because they require energy for many sectors, such as industry, transport, agriculture, housing. The main components of energy policy include legislation, international treaties, energy subsidies and other public policy techniques.

Nuclear power in the United Kingdom generated 16.1% of the country's electricity in 2020. As of August 2022, the UK has 9 operational nuclear reactors at five locations, producing 5.9 GWe. It also has nuclear reprocessing plants at Sellafield and the Tails Management Facility (TMF) operated by Urenco in Capenhurst.

<span class="mw-page-title-main">Renewable energy in the European Union</span>

Renewable energy progress in the European Union (EU) is driven by the European Commission's 2023 revision of the Renewable Energy Directive, which raises the EU's binding renewable energy target for 2030 to at least 42.5%, up from the previous target of 32%. Effective since November 20, 2023, across all EU countries, this directive aligns with broader climate objectives, including reducing greenhouse gas emissions by at least 55% by 2030 and achieving climate neutrality by 2050. Additionally, the Energy 2020 strategy exceeded its goals, with the EU achieving a 22.1% share of renewable energy in 2020, surpassing the 20% target.

<span class="mw-page-title-main">Energy in the United Kingdom</span>

Energy in the United Kingdom came mostly from fossil fuels in 2021. Total energy consumption in the United Kingdom was 142.0 million tonnes of oil equivalent in 2019. In 2014, the UK had an energy consumption per capita of 2.78 tonnes of oil equivalent compared to a world average of 1.92 tonnes of oil equivalent. Demand for electricity in 2023 was 29.6 GW on average, supplied through 235 TWh of UK-based generation and 24 TWh of energy imports.

<span class="mw-page-title-main">Energy policy of the United Kingdom</span> United Kingdom legislation

The energy policy of the United Kingdom refers to the United Kingdom's efforts towards reducing energy intensity, reducing energy poverty, and maintaining energy supply reliability. The United Kingdom has had success in this, though energy intensity remains high. There is an ambitious goal to reduce carbon dioxide emissions in future years, but it is unclear whether the programmes in place are sufficient to achieve this objective. Regarding energy self-sufficiency, UK policy does not address this issue, other than to concede historic energy security is currently ceasing to exist.

<span class="mw-page-title-main">Climate Change and Sustainable Energy Act 2006</span> United Kingdom legislation

The Climate Change and Sustainable Energy Act 2006 is an Act of the Parliament of the United Kingdom which aims to boost the number of heat and electricity microgeneration installations in the United Kingdom, so helping to cut carbon emissions and reduce fuel poverty.

<span class="mw-page-title-main">Energy policy of the European Union</span> Legislation in the area of energetics in the European Union

The energy policy of the European Union focuses on energy security, sustainability, and integrating the energy markets of member states. An increasingly important part of it is climate policy. A key energy policy adopted in 2009 is the 20/20/20 objectives, binding for all EU Member States. The target involved increasing the share of renewable energy in its final energy use to 20%, reduce greenhouse gases by 20% and increase energy efficiency by 20%. After this target was met, new targets for 2030 were set at a 55% reduction of greenhouse gas emissions by 2030 as part of the European Green Deal. After the Russian invasion of Ukraine, the EU's energy policy turned more towards energy security in their REPowerEU policy package, which boosts both renewable deployment and fossil fuel infrastructure for alternative suppliers.

<span class="mw-page-title-main">Energy in France</span>

According to the International Energy Agency, France has historically generated a very low level of carbon dioxide emissions compared to other G7 economies due to its reliance on nuclear energy. Energy in France was generated from five primary sources: nuclear power, natural gas, liquid fuels, renewables and coal. In 2020, nuclear power made up the largest portion of electricity generation, at around 78%. Coal energy is declining and due to cease. Renewables accounted for 19.1% of energy consumption in 2020. France has the largest share of nuclear electricity in the world. The country is also among the world's biggest net exporters of electricity. The country is increasingly investing in renewable energy and has set a target of 32% by 2030.

<span class="mw-page-title-main">Climate Change Act 2008</span> United Kingdom legislation

The Climate Change Act 2008 is an Act of the Parliament of the United Kingdom. The Act makes it the duty of the Secretary of State to ensure that the net UK carbon account for all six Kyoto greenhouse gases for the year 2050 is at least 100% lower than the 1990 baseline, toward avoiding dangerous climate change. The Act aims to enable the United Kingdom to become a low-carbon economy and gives ministers powers to introduce the measures necessary to achieve a range of greenhouse gas reduction targets. An independent Committee on Climate Change was created under the Act to provide advice to UK Government on these targets and related policies. In the act Secretary of State refers to the Secretary of State for Energy and Climate Change.

<span class="mw-page-title-main">Climate Change Committee</span> UK Climate Change public body

The Climate Change Committee (CCC), originally named the Committee on Climate Change, is an independent non-departmental public body, formed under the Climate Change Act (2008) to advise the United Kingdom and devolved Governments and Parliaments on tackling and preparing for climate change. The Committee provides advice on setting carbon budgets, and reports regularly to the Parliaments and Assemblies on the progress made in reducing greenhouse gas emissions. Notably, in 2019 the CCC recommended the adoption of a target of net zero greenhouse gas emissions by the United Kingdom by 2050. On 27 June 2019 the British Parliament amended the Climate Change Act (2008) to include a commitment to net zero emissions by 2050. The CCC also advises and comments on the UK's progress on climate change adaptation through updates to Parliament.

<span class="mw-page-title-main">Renewable energy in the United Kingdom</span>

Renewable energy in the United Kingdom contributes to production for electricity, heat, and transport.

Mandatory renewable energy targets are part of government legislated schemes which require electricity merchandisers to source-specific amounts of aggregate electricity sales from renewable energy sources according to a fixed time frame. The objective of these schemes is to promote renewable energy and decrease dependency on fossil fuels. If this results in an additional expenditure of electricity, the additional cost is distributed across most customers by increases in other tariffs. The cost of this measure is therefore not funded by the government budgets, except for costs of establishing and monitoring the scheme and any audit and enforcement actions. As the cost of renewable energy has become cheaper than other sources, meeting and exceeding a renewable energy target will also reduce the expenditure of electricity to consumers.

<span class="mw-page-title-main">Department of Energy and Climate Change</span> Former department of the UK Government

The Department of Energy and Climate Change (DECC) was a department of the Government of the United Kingdom created on 3 October 2008, by Prime Minister Gordon Brown to take over some of the functions related to energy of the Department for Business, Enterprise and Regulatory Reform, and those relating to climate change of the Department for Environment, Food and Rural Affairs.

<span class="mw-page-title-main">Energy in Saudi Arabia</span>

EnergyinSaudi Arabia involves petroleum and natural gas production, consumption, and exports, and electricity production. Saudi Arabia is the world's leading oil producer and exporter. Saudi Arabia's economy is petroleum-based; oil accounts for 90% of the country's exports and nearly 75% of government revenue. The oil industry produces about 45% of Saudi Arabia's gross domestic product, against 40% from the private sector. Saudi Arabia has per capita GDP of $20,700. The economy is still very dependent on oil despite diversification, in particular in the petrochemical sector.

<span class="mw-page-title-main">American Clean Energy and Security Act</span> Proposed United States climate and energy legislation (Waxman-Markey); never passed

The American Clean Energy and Security Act of 2009 (ACES) was an energy bill in the 111th United States Congress that would have established a variant of an emissions trading plan similar to the European Union Emission Trading Scheme. The bill was approved by the House of Representatives on June 26, 2009, by a vote of 219–212. With no prospect of overcoming a threatened Republican filibuster, the bill was never brought to the floor of the Senate for discussion or a vote. The House passage of the bill was the "first time either house of Congress had approved a bill meant to curb the heat-trapping gases scientists have linked to climate change."

<span class="mw-page-title-main">Energy in Switzerland</span>

Energy in Switzerland is transitioning towards sustainability, targeting net zero emissions by 2050 and a 50% reduction in greenhouse gas emissions by 2030.

<span class="mw-page-title-main">Energy Act 2010</span> United Kingdom legislation

The Energy Act 2010 is an act of the Parliament of the United Kingdom pertaining to the regulation of energy usage and markets, with amendments to similar pieces of previous legislation. The act was granted royal assent on 8 April 2010 along with a series of other bills during the wash-up period prior to the 2010 general election.

<span class="mw-page-title-main">Greenhouse gas emissions by the United Kingdom</span> Overview of the greenhouse gas emissions by United Kingdom

In 2021, net greenhouse gas (GHG) emissions in the United Kingdom (UK) were 427 million tonnes (Mt) carbon dioxide equivalent, 80% of which was carbon dioxide itself. Emissions increased by 5% in 2021 with the easing of COVID-19 restrictions, primarily due to the extra road transport. The UK has over time emitted about 3% of the world total human caused CO2, with a current rate under 1%, although the population is less than 1%.

<i>Energiewende</i> Ongoing energy transition in Germany

The Energiewende is the ongoing energy transition by Germany. The new system intends to rely heavily on renewable energy, energy efficiency, and energy demand management.

References

  1. 1 2 Bakewell, Sally (29 November 2012). "U.K. Nuclear Push Gains With Bill to Revamp Power Market". Bloomberg. Retrieved 26 February 2013.
  2. "Bill Documents". UK Parliament. Retrieved 26 February 2013.
  3. "Energy Act 2013". UK Parliament. Retrieved 19 June 2015.
  4. "Energy Act 2013".
  5. "Energy Bill amendment could boost green construction". Building.co.uk. Retrieved 26 February 2013.
  6. ""Once in a generation" UK Energy Bill falls short of expectations". Commodities Now. Archived from the original on 8 April 2013. Retrieved 26 February 2013.
  7. "Sticking point? -- The 2030 decarbonisation target debate". Cornwall Energy. Retrieved 23 September 2015.
  8. "Hopes for green investment boost from Energy Bill amendment" . Retrieved 26 February 2013.