Electricity is a key commodity and this is why there is a Electricity Amendment Bill 2021 going through the Houses of Parliament. This Bill may well affect your electricity supply and the way you pay for it every month. One concern that many people have is that the rise in fuel prices may see an increase in their monthly electricity bills. The amended Bill will no doubt take some of the strain from the energy companies by increasing regulation on gas and electricity suppliers.
This Bill also includes a ban on the amount of Renewable Energy certificates that companies are able to issue. The aim of this Bill is to create a situation where there is little or no use of energy from alternative sources. This is one measure that the Government wants to take in order to reduce the pressure on the already strained electricity supplies. It is understood that without these sorts of certificates, companies will be unable to invest in renewable energy schemes.
A ban may also come into force on the use of certain fuels in residential homes. For example, the Bill states that any fuel which causes more smog than others may be banned. An obvious restriction on wood burning stoves and other items that produce large amounts of smoke would also be enforced. This Bill also aims to end the ‘greenwash’ effect where energy suppliers try to promote green forms of energy as much as possible. By cutting back on the amount of green energy use in homes, it may help to reduce the pressure on the environment.
However, the Government has stressed that this Bill should not affect the pricing structure of electricity provided by British Gas. As it is the regulated company, it is guaranteed that electricity prices will remain at current levels. Although this may well please customers who have seen their electricity bills spiral over the past year, it may not please the energy suppliers who are fighting to maintain their profit margins. They may decide to pass on some of the costs associated with the Electricity Amendment Bill.
Other measures included in the Electricity Bill could see a rise in the minimum cost of electricity. There may also be an increase in the fixed rate of tariffs for certain periods. In some cases, there may be an increase in the percentage of shares that companies pay to the Government every year. Whichever way you look at it, there is no doubt that electricity prices are set to rise yet again in the next year.
Electricity suppliers will be looking to protect their market share, and are likely to offer some sort of concession on electricity prices. If this bill gets through the House of Commons, it is likely that they will get a deal that they can negotiate with the Libdem leader over. It is however vital that before a deal is agreed, the full facts of how electricity will be regulated are known by the suppliers.