The Energy and Climate Change Committee is conducting pre-legislative scrutiny of the government’s draft legislation on energy.
The document sets out the proposals, which Energy Secretary Amber Rudd claims would increase competition and help consumers get a good deal by keeping prices down and ensuring they are protected.
They would also enable the government to drive “timely delivery” of smart meters, provide Ofgem with powers that support the introduction of next-day switching as well as enable “competitive tenders” for some onshore electricity assets, she adds.
Ms Rudd states: “Nearly a quarter of the average household electricity bill in 2014 was made up of the cost of transporting electricity from the place that it was generated to the customer. Extending Ofgem’s powers to enable competitive tendering for onshore electricity assets could bring new players into the market, encourage innovation and bring significant savings to consumers.”
The Committee is inviting responses on whether the proposals are sufficient to achieve the government’s aim of increasing competition in the market and reducing costs for consumers.
It is also seeking to find out if there are any relevant omissions from the draft legislation, “particularly in relation to the measures on supply and switching and competitive tendering”.
“The Committee intends to publish a report in April so that the Department of Energy and Climate Change has time to consider its recommendations and if appropriate, reflect them in the final legislation,” it said.
Views are sought in writing by 11th February 2016.