- Electricity Market Reform and the Energy Bill
- December 12, 2012
- Law Firm: Norton Rose Canada LLP - Montreal Office
On 29 November 2012, the Energy Bill was introduced into Parliament, taking forward the Electricity Market Reform process that has been ongoing since 2010. It follows from the draft Energy Bill and pre-legislative scrutiny process that started in May 2012.
The Energy Bill will entrench into primary legislation the tools that are required to deliver the Government objectives of decarbonising generation, ensuring security of supply and ensuring affordability for consumers.
The implementation of the Energy Bill will profoundly reform the electricity sector in Great Britain. It should encourage the development of a wider energy mix, including nuclear and renewables generation but also gas generation, whilst controlling cost and foster much needed investment in new generation.
The legislative process will now run its course with the aim that the bill should receive Royal Assent by the end of 2013. In the meanwhile, the Government will continue to negotiate with stakeholders to develop the implementation details.
Our leading energy practice in London of over 70 dedicated energy lawyers has been following the EMR since its inception. We have brought together our specialists in renewables, nuclear and conventional power to analyse the potential impact the EMR will have on the market in the UK.
These pages consider the key aspects that are relevant to the energy sector and discuss the key changes that have been introduced since May 2012 and key issues that should be considered by industry participants.
The Energy Bill 2012 briefing series
Together with the Energy Bill, a raft of documents was published on 29 November providing greater policy details on the measures proposed. These include:
- Energy Bill
- Energy Bill Policy Overview
- FiT with CfDs: Operational Framework
- FiT with CfDs: Heads of Terms
- Capacity Market: Design and Implementation Update
- Institutional Framework: Delivering the EMR
- EMR delivery plan: decision making process for CfDs and the Capacity Market
- Indicative EMR implementation roadmap
- Government Response to the House of Commons Energy and Climate Change Select Committee Report
These documents build on the analysis and details that had been released in May 2012 with the Draft Energy Bill and on which we commented extensively. We have reviewed the newly released documentation and highlighted in this Energy Bill 2012 briefing series the key changes that have been made to the May 2012 proposals and the risks and issues that remain:
- CfD Operational Framework: ten key aspects
- CfD Heads of Terms: ten discussion points to move the CfD forward
- FID enabling process and investment contracts - update
- Capacity Market - an update on the design and implementation
- RO Transition - update
- Emission Performance Standards - update
- Nuclear Regulations and the Office for Nuclear Regulation