Energy Act 2010

Act of Parliament

House	Act	Date
	Energy Act 2010 c.27 | PDF version, 301KB	09.04.2010

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Latest news on the Energy Act 2010

Following agreement by both Houses on the text of the Bill it received Royal Assent on 8 April. The Bill is now an Act of Parliament (law).

Summary of the Energy Act 2010

The Bill follows on from the low carbon transition plan, published in July 2009. This plan aims to deliver emissions cuts of 34 per cent from 1990 levels by 2020 and of 80 per cent by 2050, while maintaining security of supply, maximising economic opportunities and protecting vulnerable consumers. The Bill will deliver some of the primary legislation required by the plan.

Key areas

• introduces a carbon capture and storage incentive to support the construction of up to four UK demonstration projects, to be chosen in a competition
• provides for mandatory social price support to reduce energy bills for the most vulnerable. This would replace the current voluntary agreement which expires in 2011
• increases the powers of the regulator, Ofgem, to deal with exploitation of electricity distribution constraints by generators
• increases Ofgem’s power to fine companies
• clarifies Ofgem’s objectives on tackling climate change, ensuring secure energy supplies and the role of measures other than competition in protecting the interests of consumers
• gives the Secretary of State the power to ban cross-subsidy between gas and electricity accounts

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