Country:United Kingdom
Policy status:Superseded
Date Effective:2010
Policy Type:Policy Support>Strategic planning
Policy Target:
Policy Sector:Framework Policy
Agency:Department of Energy and Climate Change (DECC)

The main elements of the Energy Act 2010 are:

  • Provision for the introduction of the "Green Deal" pay-as-you-save scheme;
  • Carbon capture and storage (CCS) incentive;
  • Delivering a financial support mechanism that will bring forward up to four commercial-scale demonstration projects on coal-fired power stations, and will permit the retrofit of additional CCS capacity to those projects (should it be required at a future point);
  • Mandatory social tariff support;
  • Reducing the energy bills of more of the most vulnerable energy users by increasing the level of spending by energy companies on social support above current levels (rising from GBP150 million in 2010-11 to GBP300 million by 2013-14) and giving greater guidance on the types of households eligible for future support;
  • Clarifying Ofgem's remit;
  • Making it clear that Ofgem must consider reducing carbon emissions and delivering secure energy supplies as in the interest of consumers, and step in proactively to protect the consumer interest as well as considering longer term actions to promote competition;
  • Tackling market power exploitation;
  • Giving Ofgem additional powers, through the introduction of a Market Power Licence Condition, to prevent companies exploiting market power resulting from constrained capacity in the electricity transmission system leading to raised costs for consumers.

Other measures are:

  • Requiring the Government to prepare regular reports (every 3 years) on the progress that has been made on the decarbonisation of electricity generation in Britain and the development and use of CCS;
  • Allowing the Government to set the period within which energy companies must inform customers of changes to their gas and electricity tariffs (currently at an unacceptable 65 working days);
  • Extending the time limit within which Ofgem can impose financial penalties on energy suppliers for breaches of licence conditions from 12 months to 5 years;
  • Enabling action to be taken against certain types of cross-subsidy between gas and electricity.
Related policies:Energy Act 2004 , Energy Act 2008
This record is superseded by:Electricity Market Reform (EMR)
Related Documents:

In order to download full text of the UK Energy Act 2010 please, click here.

Last modified: Thu, 30 Jul 2015 11:03:37 CEST