The Energy Security Bill explained – from the Queen’s Speech

On Wednesday 11 May, the Queen’s Speech was delivered which announced that an Energy Security Bill will be introduced at some point over the next parliamentary session.

What is the Energy Security Bill and what does the Government state the benefits will be?

What are the main elements of the Energy Security Bill?

Video Transcripts

What is the Energy Security Bill?

The Bill will deliver the commitments in the British Energy Security Strategy and the Ten Point Plan for a Green Industrial Revolution. The commitments are designed to build a more secure, homegrown energy system that is cleaner and more affordable. This applies mainly to Great Britain, with some provisions extending and applying across the UK

What does the Government state the benefits will be?

The government has outlined that it thinks the benefits of the Bill would be to:

  • Maintain a safe and secure energy supply
  • Protect consumers against global price fluctuations and unfair pricing
  • Increase our energy security by supporting a low-carbon energy system
  • Reduce our dependence on gas over the long term
  • Enable the extension of the price cap beyond 2023
  • Regulate the head networks sector
  • Attract billions in private investment
  • Supports tens of thousands of new, skilled jobs across the UK
  • Develop Carbon Capture Usage and Storage industry
  • Develop hydrogen industry

What are the main elements of the Energy Security Bill?

Government

  • Give Government the power to give directions to, require information from, and provide financial assistance to core fuel sector businesses to ensure resilience and continuity of fuel supply.
  • Establish a new Future System Operator whose job will be to provide strategies oversight across electricity and gas systems. This will help drive progress towards net zero, energy security and minimising consumer costs.

Supply

  • Extend the energy price cap to prevent suppliers from overcharging consumers.

Hydrogen and Carbon Capture

  • Introduce state-of-the-art business models for low carbon hydrogen. To enable the first ever large-scale hydrogen heating trial to better understand its roll of heat decarbonisation in 2026
  • As well as, introduce state-of-the-art business models for Carbon Capture Usage and Storage transport and storage, and industrial carbon capture

Heat

  • Provide a new market standard and trading scheme for electric heat pumps to support the industry to step up investment in growing the consumer market for these assets.
  • Appoint Ofgem as the new regulator for heat networks to ensure fair pricing and a reliable supply.

Wind

  • Introduce competition in Britain’s onshore electricity networks. This will encourage investment, encourage innovation and enable savings.

Nuclear

  • Facililate the safe, and cost-effective clean up of the UK’s legacy nuclear sites, ensuring the UK is a responsible nuclear state.
  • Create a pro-innovation environment for fusion energy

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