Recently, new legislation has been enacted to boost energy security and deliver net zero.
The Energy Act 2023, which became law on October 26th, 2023, is set to support the attainment of net zero targets and to help the energy system to become more efficient in the long term.
The Department for Energy Security and Net Zero claim that this bill stands as the most significant energy legislation in a generation, establishing the foundations for the future energy system.
This measure is set to unlock £100bn in private investment for energy infrastructure, driving the expansion of employment opportunities and economic growth.
In addition, this act will contribute to creating a more competitive onshore electricity network, which will, in turn, help ensure lower energy costs. Initiatives will also speed up the progress of offshore wind energy projects, reducing carbon emissions and enhancing grid stability.
This new model is predicted to save customers up to £1bn off their energy bills by 2050, which is a positive development as energy will be much more affordable for consumers, resulting in increased financial security.
The Competition and Markets Authority will also play an important role in establishing a specific merger regime for energy networks. This will minimise the potential negative impacts of mergers between energy network companies on consumers and is projected to result in savings of up to £420m for households over the next ten years.
The UK government is additionally progressing in establishing a licensing framework for CO2 transport and storage. This will enable to UK’s first carbon capture sites to be built, which will lead to the creation of up to 50,000 jobs by 2030, boosting the economy.
With this transformative piece of legislation in effect, the UK as a nation will be one step closer to achieving a more sustainable future with their commitment to reducing carbon footprint, reaching net zero emissions by stimulating energy security.