The most significant piece of energy legislation in the UK’s history has become law this month (Thursday 26 October 2023), laying the foundations for an energy system that is ‘fit for the future’.
The Energy Act 2023 has received Royal Assent and is designed to transform the UK’s energy system by strengthening energy security, supporting the delivery of net zero and ensuring domestic and business energy bills are affordable in the long-term.
The Act includes a number of major changes. Each is intended to create a more efficient energy system that can uphold the growing number of electrified technologies being added as the nation moves towards impending net zero targets.
It is hoped that the Act will deliver a more efficient energy system in the long-term, helping to keep energy costs low. It aims to do this by increasing competition in Great Britain’s onshore electricity networks, through a new tender process – reducing costs for network operation and development. This new model is expected to save consumers up to £1billion off their energy bills by 2050.
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. A smart electricity system could reduce system costs by up to £10 billion a year by 2050.
The government is expanding the remit of Ofgem (the energy regulator) to heat networks, thereby allowing the them to set rules on excessive pricing and improve the quality of service for the half a million heat network consumers across the country.
Energy Security Secretary Claire Coutinho said: “The Energy Act is the largest piece of energy legislation in a generation. It will boost investment in clean energy technologies and support thousands of skilled jobs across the country.
“The Act also supports our new approach to make sure that families don’t feel a disproportionate financial burden as we transition to net zero, and forms a central part of our efforts to keep people’s bills affordable in the long-term.”
She added the Act will help the government deliver net zero by 2050 in a pragmatic, proportionate and realistic way. It updates Ofgem’s remit so 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.
How can Priva support energy efficient landlords?
Priva supports regulatory changes that focus on energy efficiency, and the move towards smarter and more connected ways to improve building performance – including our own cloud-based solutions that will boost the efficiency and sustainability of commercial buildings.
We welcome conversations with commercial landlords, FMs, commercial real estate operators or managers who want to make their buildings more energy efficient, smarter and intelligent. Drop us line if you’d like to discuss your energy challenges.
Read more of Priva UK’s blogs about energy efficiency legislation – including the MEES deadline (and the scale of the EPCs / MEES challenge for commercial landlords).
