Key Facts

• Amendment proposed (this day): 95 in clause 119.
• Amendments 96 and 97 aim to include certain distribution systems in the functions of the ISOP.
• New clause 37 proposes an advisory board of at least eight independent energy figures for the ISOP.
• Clause 121 sets out three main objectives for ISOP: net zero emissions, security of supply, and efficiency.
• The definition of 'relevant activity' includes hydrogen and carbon capture technologies.
• Clause 122 requires ISOP to facilitate competition where possible.
• ISOP's role includes promoting the coordinated operation of electricity and gas grids.
• Net zero targets require a comprehensive approach across multiple policy areas.
• The Secretary of State is the sole shareholder of ISOP and appoints the board chair.
• The clause imposes a duty on the ISOP to provide requested advice, analysis or information to the Government or Ofgem.
• Clause 130 grants the ISOP power to request necessary information for fulfilling its functions from relevant parties.
• Clause 131 obligates the ISOP to keep under review policy initiatives and developments in the energy sector.
• Part 5 of the Bill governs gas and electricity industry codes.
• Clause 140 allows the Secretary of State to identify documents critical for energy systems operation.
• A new governance framework will be established with code managers accountable to Ofgem instead of industry parties.
• The current process for updating rules was designed post-privatisation when incremental changes were expected from the industry.
• There is a lack of incentive for the industry to make rule changes contrary to their own interests, even if beneficial for consumers or strategic priorities.
• Ofgem will be empowered to drive strategic change across 11 energy codes.
• Clause 148 requires the Gas and Electricity Markets Authority (GEMA) to publish a strategic direction statement setting out its objectives and priorities.
• Clause 149 mandates that the Secretary of State must lay a report before Parliament on the progress made by GEMA in implementing its strategic direction.
• The clauses aim to enhance transparency and oversight over code governance in the energy sector.
• Clause 148 places a duty on the GEMA to publish an annual strategic direction statement about the codes.
• Clause 149 allows for the transfer of this duty from the GEMA to the ISOP via regulations if deemed appropriate in the future.
• Clauses 150 to 153 empower the GEMA to modify codes directly and issue directions to IT system operators under specific conditions.
• Regulations under Part 5 will be technical in nature focusing on direct selection options.
• The regulations established under part 5 will follow the negative procedure rather than affirmative as proposed by Alan Whitehead.
• Clauses 156 to 158, Schedules 10, 11, and 12 are agreed upon standing part of the Bill.
• Ofgem published a decision in December 2022 on accelerating onshore electricity transmission investment.
• The ASTI programme identifies strategic network challenges up to 2030.
• Projects outside the system may be of less strategic significance but are still important.
• Clause 160 sets out mechanisms for enabling competitive tenders in onshore electricity networks.
• Schedule 13 of the Bill outlines these mechanisms.
• The electricity network strategic framework estimates an additional £100 billion to £240 billion is needed by 2050.
• Clause 161 and schedule 14 establish a special mergers regime for energy networks.
• The new regime could save consumers up to £420 million over ten years.
• Multi-purpose interconnectors combine electricity interconnectors with offshore wind transmission connections.
• Clause 162 introduces a definition for multi-purpose interconnectors in the Electricity Act 1989.
• Clause 163 requires publication of standard conditions for multi-purpose interconnector licences by the Secretary of State.
• Clause 164 mandates certification by Ofgem to ensure independence from electricity generation and supply activities.
• Clause 165 enables the Secretary of State to grant MPI licences to existing operators with relevant licences.
• Clause 166 allows future amendments to current laws to accommodate multi-purpose interconnectors as needed.
• Clause 167 introduces schedule 15 for minor and consequential amendments to ensure proper legal framework.
• Multi-purpose interconnectors enable more flexible use of energy from sources like offshore wind in the North Sea.
• Current regulations restrict interconnectors to being simple two-way connectors between jurisdictions.
• Clause 168 clarifies that electricity storage is a distinct subset of generation under the Electricity Act 1989.
• The new definition includes storage as energy converted from electricity and stored for reconversion, providing legal clarity.
• The current exemption in the ECO scheme is for suppliers with fewer than 150,000 domestic customer accounts.
• The proposed buy-out mechanism will require secondary legislation to establish details.
• The clause allows the Secretary of State and Scottish Ministers to set criteria for approving third parties and purposes.
• The smart meter roll-out rate is 55% after nine years of operation.
• There are regional divergences in the roll-out, making it difficult to achieve uniform coverage.
• Urban environments and areas near strong radio technology installations pose significant challenges for installing smart meters.
• The current roll-out has failed to achieve full smart mode operation for many meters.
• Only 28.1 million out of 31.3 million installed meters are operating in smart mode.
• A guaranteed roll-out target is proposed for at least 70% penetration by 2025.
• Hundreds of millions of litres of water entered the gas system.
• 3,000 properties experienced water ingress.
• Some meters measure cubic metres while others measure cubic feet.
• Cadent replaced faulty gas meters but did not provide smart meters.
• The incident led to a decline in the number of smart meters in the constituency.
• Some constituents received bills of £5,000 as a result.
• More than 32.4 million homes in the UK now have smart meters.
• Over 12 million SMETS1 meters are connected to the Data Communications Company’s network.
• Energy suppliers have binding installation targets for smart meters until the end of 2025.
• Regulatory powers related to smart metering will expire on November 1, 2023, and clause 170 seeks to extend these until November 1, 2028.
• The roll-out is expected to reduce energy system management costs by up to £10 billion annually by 2050.
• The purpose of the smart meter programme was to achieve full coverage in the shortest time.
• Early consultations were conducted by the previous Labour Government but no legislation was passed until after the Conservatives took power for two years.
• The MP expresses disappointment with the current state and progress of the roll-out.