We’re pleased to see the Energy Act 2023 receive the Royal Assent yesterday (26th October) – the first major legislation since the announcement of the British Energy Security Strategy in April 2022.
The new Bill enables deployment of innovative technologies such as heat networks development, heat pumps installations and carbon capture usage and storage – all of which have been at the forefront of Amberside Advisors’ energy transition agenda.
In addition to backing the development of low carbon energy technology, the Energy Act also introduces new responsibilities for Ofgem. Following Chris Skidmore MP’s Net-Zero Review, who recommended the change, the new legislation gives Ofgem a net-zero remit.
It also officially makes Ofgem the UK’s official regulator of heat networks, giving it additional powers to drive through the energy transition. The Act clarifies the zoning plans delivery, incentivises the heating industry to invest in low carbon heat pumps and encourages smart meter rollout.
This critical piece of legislation is a welcome step on the UK’s journey to achieve net zero targets, providing confidence to the energy sector, encouraging investment and improving customer protections. It is estimated that measures included in the Act could leverage £100bn of private investment in the sector.
“We welcome the Act receiving the Royal Assent. The regulation will hopefully help the energy sector be less reliant on the public bodies having to act as pseudo regulators, and therefore give confidence to investors and encourage private finance to boost growth. It’s encouraging to see the support for zoning delivery, ensuring heat network connections (and access to heat sources) are mandated where it makes economic sense to do so.” commented Mark Easter, Amberside Advisors’ Head of Commercial Advisory.
To read more about The Energy Act 2023, click here.