Money Wellness
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category iconcost of living
calendar icon26 Oct 2023

New laws passed to make UK’s energy greener and more affordable

The Energy Act 2023 has become law today (Thursday 26 October). According to the government, the new legislation will:

  • make energy more affordable and the UK more energy independent
  • help unlock £100bn of private investment in energy infrastructure meaning more jobs  
  • boost the development of offshore wind helping the UK meet its commitment to achieve net zero by 2050

How will the Act create cheaper, greener energy?

The government says the Act will achieve all this by:

  • increasing competition in Great Britain’s onshore electricity networks though a new tender process that will cut costs for network operation and development. The new model is forecast to save customers up to £1bn off their energy bills by 2025.
  • creating a merger regime for energy networks that will reduce the risk of mergers between energy network companies hurting customers. It is predicted to save households up to £420 million over the next ten years.
  • introducing new measures to promote energy smart appliances. This is expected to reduce system costs by up to £10bn a year by 2050.
  • expanding Ofgem’s powers so that it can set rules on heat networks and prevent excessive pricing and improve the quality of service for half a million customers across the country.
  • achieving smart meter rollout by 2028. The government claims this could save households £5.6bn.

Extra protection for energy customers

Ofgem CEO Jonathan Brearley welcomed the new legislation. He said:

“Consumers have faced a huge number of challenges in recent years, with high energy prices and cost-of-living pressures. The Act will give extra protection for existing and future customers, while powering the journey to net zero at the lowest possible cost to households and businesses.”

Avatar of Rebecca Routledge

Rebecca Routledge

A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.

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