The government has confirmed that there will be both an Energy Bill and a Flood and Water Management Bill in the legislative programme for the coming Parliamentary session. Both bills were highlighted in the Queen's Speech today after the State Opening of Parliament.
The energy legislation will require mandatory social price support (possible in the form of a bill rebate) to help vulnerable households and help combat fuel poverty. It will also make clear that Ofgem must include the reduction of carbon emissions and the delivery of secure energy supplies in the regulator's assessment of the interests of consumers.
As well the watchdog will be expected to "step in proactively" to protect consumers as well as considering longer term actions to promote competition.
In addition Ofgem will be given additional powers to tackle market exploitation where companies take advantage of constraints in the electricity transmission grid. Its powers will be further strengthened by extending the time limit from 12 months to five years within which Ofgem can impose financial penalties for breaches of licence conditions.
A key element of the bill will be the new incentive on suppliers designed to support the construction of up to four commercial-scale CCS demonstration projects in the UK.
Central to the water bill will be moves to clearly define responsibilities for managing all flood risks. Local authorities would have legal responsibility for surface water flooding. Other measures would mean that so-called Sustainable Drainage Systems (Suds) would have to be considered for new developments to help prevent surface run-off overloading the sewer system. The bill would also change and improve the safety regulation of reservoirs and give water companies new powers over non-essential domestic uses of water during periods of water shortage.
The government has also signaled that the sustainability duty that applies to the Environment Agency would be extended to other bodies managing flood risk. The interests of water customers would be further protected through proposals for a special administration regime, in line with other utility sectors. As promised water companies would be able to operate concessionary schemes relating to surface water drainage charges, protecting community groups from unaffordable rises in their bills.
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