The Energy Act 2023 has received Royal Assent, outlining a plan to transform the UK’s energy system by strengthening energy security, delivering net-zero and maintaining reasonable pricing.

At the heart of the Act is the need to increase competition in Great Britain’s onshore electricity networks, through a new tender process – reducing costs for network operation and development.
A specific merger regime for energy networks will also be created under the Competition and Markets Authority. This will minimise the risk of mergers between energy network companies having detrimental effects on consumers.

There are also new measures for Energy Smart Appliances to prioritise safety and give consumers the confidence to transition to smart products, helping them to manage their energy consumption and reduce their bills.

The government is expanding Ofgem’s remit to heat networks, allowing the regulator to set rules on excessive pricing and improve the quality of service for the half a million heat network consumers across the country. The Act updates Ofgem’s remit so that it considers net-zero targets as part of its everyday decisions and facilitates the first large village hydrogen heating trial – providing crucial evidence on the technology’s role in decarbonising heat.

The government is also introducing a licensing framework for CO2 transport and storage to help deliver the UK’s first carbon capture sites and is making the UK the first country to legislate for fusion regulation, driving the UK’s ambition for a prototype fusion power plant by 2040.

Establishing a new independent body – the Future System Operator – will ensure consumers can access a secure and decarbonised energy supply, key to enhancing the country’s energy security. The FSO will be responsible for systems in the gas and electricity network developing efficiently and keeping consumer bills low.

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