We welcomed the publication of the Energy Bill on November 29, 2012 which will implement the key aspects of Electricity Market Reform as articulated in the 2011 White Paper
We believe that the Bill demonstrates a real commitment to create the right conditions to give the UK a secure, affordable and low-carbon energy supply for the future.
The EMR proposals dominate the Energy Bill and contain provisions for the Government’s proposals from the White Paper, namely:
- Contracts for Difference (CfD) – long-term contracts between a CfD counter-party and eligible generators, funded by contributions from licensed electricity suppliers to provide stable and predictable incentives for companies to invest in low-carbon electricity generation
- Investment contracts – long-term contracts broadly similar to CfDs to enable early investment in advance of the CfD regime coming into force
- Capacity Market – to ensure security of electricity supply
- Emissions Performance Standard – to limit carbon dioxide emissions from new fossil fuel power stations
EDF Energy believes that the Energy Bill can provide the legal certainty required for robust and durable CfDs, with a single Government-owned counterparty which will offer stability and value for customers, as well as long term assurance for investors. EDF Energy also welcomes confirmation that there will be a Capacity Market which will help maintain security of supply.
Following the normal parliamentary scrutiny process, the Government’s indicative EMR Roadmap expects Royal Assent of the Energy Bill towards the end of 2013. We will continue to work with the Government and other stakeholders to ensure it becomes legislation as soon as possible.