The UK government's Energy Bill has undergone a significant update, with the addition of two new clauses by the House of Lords. This update means that households and businesses can now become customers of community-led local renewable energy companies, leading to a potential twentyfold growth in renewable energy generation within a decade.
Supported by 320 MPs from all parties, including 127 Conservatives, and backed by hundreds of councils, the National Trust, the Church of England and over 80 other national organisations, the reform would improve energy market competition, create tens of thousands of skilled jobs and help reduce customers' energy bills.
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“Money from energy bills would be kept local and would improve local economies across the country, while increasing local provisions for support of vulnerable customers,” says a spokesperson for the campaign group, Power for People. The group has been instrumental in lobbying for the community energy enabling clauses.
At a recent debate on the Energy Bill, MPs from all parties called on the government to stop dragging its feet and open up the huge community energy sector opportunity. Conservative MP for Buckingham, Greg Smith, commented that “It is an absurdity that the community energy sector has seen minimal growth in recent years because of energy market and licensing rules. These [clauses] seem to be straightforward, pro-competition, pro-consumer reforms. If the Minister is minded not to support them, what will he propose to open up the huge community energy sector opportunity?”
Selaine Saxby, Conservative MP for North Devon, echoed Smith's sentiment and questioned why the potential for growth in smaller-scale energy schemes had not been explored sooner. “As someone who lives somewhere sunny, windy and with a huge tide, I am still bewildered by this,” she said.
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The community energy enabling clauses were the most raised and supported component of the Energy Bill at its second reading in the House of Commons on 9th May. The changes have the potential to accelerate the construction of new clean energy infrastructure, while ensuring that money from energy bills is kept local to support vulnerable customers and boost local economies.
