The Energy Act 2023, the most comprehensive energy legislation in the UK’s history, received Royal Assent on Thursday, 26th October.
It aims to make the UK self-reliant in the energy sector while boosting private investment and employment opportunities.
One of the key aspects of the Act is its focus on cost efficiency. By fostering competition in onshore electricity networks through a new tender process, it is anticipated that consumers could save up to £1 billion on energy bills by 2050.
To safeguard consumers further, a specific merger regime for energy networks is being established to prevent negative impacts on households.
This initiative is projected to save households approximately £420 million over the next decade.
The Act also encourages the use of Energy Smart Appliances, with an emphasis on safety, which could reduce system costs by up to £10 billion annually by 2050.
Expanding the regulator Ofgem’s scope to cover heat networks will ensure better pricing and service quality for approximately half a million consumers.
Energy Security Secretary Claire Coutinho said: “The Energy Act is the largest piece of energy legislation in a generation. It will boost investment in clean energy technologies and support thousands of skilled jobs across the country.
“It lays the foundations for greater UK energy independence, making us more secure against tyrants like Putin, and helps us to power Britain from Britain.”
Ofgem Chief Executive Officer Jonathan Brearley said: “Consumers have faced a huge number of challenges in recent years, with high energy prices and cost of living pressures.
“The Act will give extra protection for existing and future customers, while powering the journey to Net Zero at the lowest possible cost to households and businesses.”