Key Facts

• New clause proposed to amend sections of the Gas and Electricity Acts related to emissions and climate change duties.
• The amendment aims to align with net zero target for 2050 and five-year carbon budgets under the Climate Change Act 2008.
• Clause 270 prohibits new coalmines in six months after Bill passage.
• The debate is focused on whether to open new coal mines in the UK.
• A former COP26 President and the chair of the Climate Change Committee have expressed concerns about the environmental impact of opening new coalmines.
• 85% of the coal from a proposed mine would be exported due to its high sulphur content, making it unsuitable for UK steel industry use.
• Brown supports deploying renewables like pumped-storage hydro.
• He argues against opening new coalmines in the UK while supporting onshore wind deployment.
• He has tabled a clause to set up a just transition commission and another for net zero impact assessments.
• The UK is increasing shipping emissions by exporting coal to Germany.
• Opening new mines would likely increase global CO2 emissions by about 400,000 tonnes annually.
• The speaker represents a former coalmining area that has struggled with economic recovery and environmental impacts from pit closures.
• Community energy schemes account for just 0.5% of the UK’s electricity but could potentially increase to around 10% within ten years.
• A study in Newmilns aims to install solar panels on a brownfield site to reduce local industry bills and make the town net zero.
• The government is committed to updating Ofgem’s duties through new clause 52.
• Ofgem’s CEO, Jonathan Brearley, supports the net zero duty as it aligns with climate and security goals.
• Anticipatory investment will be allowed under the measure.
• Government is considering other options to address issues faced by community energy groups.
• Coal’s share of UK electricity supply has declined from almost 40% in 2012 to less than 2% in 2021.
• The £315 million industrial energy transformation fund helps businesses with high energy use to cut their energy bills and carbon emissions.
• The ISOP will be based on existing capabilities of National Grid Electricity System Operator and National Grid Gas.
• Schedule 7 sets out principles for transfer schemes including consultation requirements and time-limited powers for regulations.
• Government amendment 19 includes the Treasury in the list of persons that can make regulations under the Bill.
• Amendment 20 clarifies annulment procedures for financial regulations under schedule 7 paragraph 9.
• Ofgem has produced a consultation titled “Funding the transition to a Future System Operator”.
• The full costs of the transition could amount to approximately £392 million according to Utility Week.
• Clauses 132 to 139 provide for the consolidation of various agencies' responsibilities into ISOP.
• Schedule 7 addresses compensation issues related to the transfer arrangements.
• The compensation for the transfer may work its way into standing charges on electricity bills.
• The ISOP will be funded by Government and supported by network balancing charges determined through a price-control mechanism.
• No increase in customers’ bills is expected as a result of establishing the ISOP.
• Clause 136 ensures that when carrying out functions in relation to ISOP, the Secretary of State and Ofgem must have regard to their principal objective and general duties as defined in existing Acts.
• Clause 137 introduces schedule 9 containing necessary amendments for integrating ISOP into the energy system regulated by Ofgem.
• Government amendment 18 is consequential on amendment 20, ensuring financial regulations made under schedule 7(9) are subject to negative procedure and approved by the House of Commons alone.
• Government new clause 9—Retention of information and samples.
• Government new clause 10—Preparation and agreement of information and samples plans.
• Government new clause 28—Interpretation of Chapter.
• Government new schedule 2—Carbon storage information and samples: appeals.
• New clauses define powers for NSTA to regulate carbon storage activities.
• Clauses establish requirements for licensees to retain information and samples.
• Public disclosure of information is allowed after a specified period.
• NSTA can issue sanction notices including enforcement, financial penalties, or operator removals.
• The new clauses aim to provide NSTA with powers to require carbon storage licensees to retain and report information and samples.
• Samples are stored by the British Geological Survey in Nottinghamshire and become publicly accessible upon disclosure.
• Changing the OGA's name to NSTA would necessitate addressing all instances where OGA is mentioned in primary and secondary legislation.
• The responsible person must prepare an information and samples plan before or after a licence event.
• Licence events include changes in control, identity of operators, transfers of rights, surrenders, expiries, terminations, and revocations.
• The OGA may prepare the plan if agreement is not reached with the responsible person.
• New Clause 13 imposes a requirement on licensees and exploration operators to appoint an individual responsible for monitoring compliance with carbon storage obligations.
• The OGA can issue notices requiring the provision of carbon storage information or samples from licensees and other holders.
• There are prohibitions against disclosing protected material by the OGA, except in accordance with specific conditions laid out in subsequent clauses.
• New Clause 17 outlines enforcement notices which require compliance within a specified period.
• New Clause 18 introduces financial penalty notices with penalties capped at £1 million.
• New Clause 19 covers revocation notices under the OGA's authority.
• New Clause 20 addresses revocation notices in carbon storage licensing.
• New Clause 21 covers operator removal notices requiring licensees to remove non-compliant exploration operators.
• New Clause 22 mandates that the OGA must issue sanction warning notices before proposing to give sanction notices.
• New Clause 22 allows the OGA to publish details of sanctions but restricts publication if it is commercially sensitive or not in the public interest.
• New Clause 23 limits the OGA's ability to issue multiple sanction notices for the same failure.
• New Clause 24 enables the OGA to withdraw sanction notices and notify relevant parties.
• New Clause 25 gives the OGA powers to require information from individuals during investigations into potential sanctions.
• New Clause 26 introduces an appeals process for decisions related to sanctions and information requirements.
• New Clause 28 establishes procedures for OGA's enforcement decisions regarding sanction notices.
• New Clause 29 enables the Secretary of State to designate a counterparty for hydrogen transport revenue support contracts.
• New Clause 30 provides directions for offering contracts to eligible hydrogen transport providers.
• New Clause 31 pertains to designation of hydrogen storage counterparties.
• New Clause 32 relates to directions for offering contracts with eligible hydrogen storage providers.
• New Clause 52 amends the principal objectives under climate change legislation.