Energy Bill: Commencement

This article was originally published in Energy Bill Summary Impact Assessment and is reproduced with permission from the publisher.

The Energy Bill is in its final stages. At the time of writing, the final amendments made in the House of Commons are being considered, with Royal Assent expected to follow shortly. When the Energy Bill receives Royal Assent, it will become law. However, not all parts of it will come into force and become operational from that date, so we have summarised the timetable for commencement of the key clauses below by reference to the three pillars of the Bill, based on the last published version.

Pillar 1: Liberating private investment in clean technologies

The most recently published version of the Bill envisages large sections of the (soon-to-be) Act, including those relating to the licensing of carbon dioxide capture, transport and storage, the Chapter on Great British Nuclear, as well as hydrogen production, licensing, and conversion trials entering into force two months from the date the Act receives Royal Assent.

Pillar 2: Reforming our energy system and protecting consumers

The latest version of the Bill key sections relating to the mergers of energy network enterprises and related CMA duties enter into force the day the Act receives Royal Assent. This also includes provisions relating to:

• heat networks (in which heating, cooling or hot water is supplied to multiple premises or buildings); and
• energy savings opportunity schemes (whereby obligations are imposed on applicable businesses to audit, report, and reduce greenhouse gas emissions).

The principal objectives of the Secretary of State for Energy Security and Net Zero (the “SoS”) and of the Gas and Electricity Markets Authority, which are protecting the interests of transport and storage network users, protecting the interests of consumers, and promoting the efficient and economic development of transport and storage networks, come into force 2 months after the Act receives Royal Assent, along with:

• amendments to the Electricity Act 1989 to support the enablement of competitive tendering for electricity projects;
• electricity support payments to support energy-intensive industries and the associated levy;
• provisions relating to the energy performance of premises; and
• powers for directions to be made to scheme administrators of Energy Savings Opportunity Schemes and financial assistance to them by SoS.

Pillar 3: Ensuring the safety, security and resilience of the energy system

The Chapter on offshore wind electricity generation, including environmental provisions and consultation procedure, is currently anticipated to enter into force two months after the Act receives Royal Assent, along with the regulation-making power for the implementation of the Convention on Supplementary Compensation for Nuclear Damage.

Other provisions, for example, provisions relating to the Independent System Operator and Planner, multi-purpose interconnectors and fuel sector resilience, will enter into force at a time to be specified by the SoS in regulations.