Govt to introduce electricity reform bill - 10/05/2012

The government has announced it will bring forward a bill to reform the country's electricity market, which could help more people get cheap energy.

In yesterday's (May 9th) Queen's Speech, the coalition confirmed that overhauling the sector will be a key focus during the coming parliamentary term.

As part of her annual address to both houses of parliament, the Queen said: "My government will propose reform of the electricity market to deliver secure, clean and affordable electricity and ensure prices are fair."

The Department for Energy and Climate Change explained the move will encourage large-scale investment in new low-carbon means of generating electricity and improve the nation's energy security.

A spokeswoman at the department said the bill will be "crucial legislation" to help keep the country's lights on in a cost-effective way, while also reducing carbon emissions and boosting the economy.

Commenting on the announcement, executive director of Which? Richard Lloyd said it is essential the needs of consumers are put at the heart of the bill.

"Badly designed policies like the Carbon Price Floor, the Green Deal and the smart meter rollout could cost the consumer billions," he said, adding: "It is imperative that this is not allowed to happen with electricity market reform."

As many people are telling Which? that rising costs for gas and electricity are among their biggest financial worries, Mr Lloyd said the government should also use the reforms as an opportunity to overhaul the energy tariff system to make them simpler.

Andy Atkins, executive director of Friends of the Earth, added the prime minister must also resist pressure from the right of his own party to increase the nation's reliance on fossil fuels.

He said the government has a "once-in-a-generation opportunity" to make the UK's electricity market cleaner and more affordable, which must not be wasted on dirty energy sources such as oil and gas.

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