Key Facts

• The new clause empowers the Secretary of State to make regulations requiring payments to persons carrying out energy-intensive activities.
• A person can be appointed as a 'support payment administrator' with consent to carry out functions related to the scheme.
• The regulations are subject to the affirmative procedure.
• The UK has the steepest industrial electricity prices in Europe.
• Steel and chemicals manufacturing are particularly impacted.
• The British industry supercharger package aims to improve competitiveness of strategic EIIs.
• New clause 53 allows compensation on network charging costs for EIIs.
• New clause 54 establishes a levy on licensed electricity suppliers to fund the NCC scheme.
• New clause 54 provides powers to establish the EII support levy.
• A review will be conducted in 2026 to update eligible sectors based on stable post-covid and post-EU data.
• Approximately 300 firms at risk of carbon leakage due to high industrial electricity prices are expected to benefit.
• New Clause 53 introduces a levy-raising body for energy-intensive industries.
• The new clause empowers the Secretary of State to impose a levy on electricity suppliers to fund support payments as outlined in section 1.
• No powers exist for further levies on separate sectors beyond those specified.
• The UK will be the first country to accede to both the Paris Convention on third party liability and the CSC.
• Four different circumstances are anticipated where changes might be needed in domestic legislation: delivering CSC accession, accepting future amendments to the CSC, exercising an option under the CSC, and dealing with any other related matters.
• The new clause is similar in scope to powers already present in section 76 of the Energy Act 2004.
• The new clauses aim to achieve up to 10 GW of hydrogen production capacity by 2030.
• A regulated asset base (RAB) mechanism is introduced to provide long-term certainty for investors.
• Government new clause 59 defines key terms for the hydrogen transport business model.
• Government amendment 169 limits the extent of the new clauses to England, Wales, and Scotland.
• The RAB scheme aims to provide secure funding for large-scale projects like nuclear plants before they start generating revenue.
• Government new clause 71 allows the Secretary of State to repeal provisions under this part through regulations, subject to an affirmative procedure in the House.
• A relevant date is specified as December 31, 2040, and every five-year anniversary thereafter.
• Andrew disputes Alan Whitehead's suggestion that subsections (2), (3), and (4) are not connected to subsection (1).
• New Clause 60 gives the Secretary of State power, with a person’s consent, to designate someone in relation to a hydrogen pipeline project.
• Subsection (2) sets out conditions for exercising this designation power.
• New Clause 61 requires the publication of statements and procedures related to designations under NC60.
• New Clause 64 provides powers for the Secretary of State to regulate applications for gas transporter licences for hydrogen pipeline projects.
• Section 7(2) of the Gas Act 1986 grants the power to issue gas transporter licences to designated persons for hydrogen pipelines.
• Regulations under this clause are subject to negative procedure and any sums received by the Secretary of State or GEMA will be paid into the Consolidated Fund.
• The Secretary of State may modify conditions or terms of a designated person’s gas transporter licence.
• Modifications must facilitate or support the financing of hydrogen pipeline projects or promote value for money in connection with such projects.
• When making modifications, the Secretary of State must consider carbon targets and budgets under the Climate Change Act 2008.
• The new clauses are part of a larger Energy Bill [Lords].
• Clause 67 proposes consultations before modifications to gas transporter licences.
• Clause 68 gives power to make regulations about information and advice provision in connection with hydrogen transportation projects.
• Clause 69 specifies conditions for gas transporter licences for conveying hydrogen through pipes.
• Clause 70 requires the GEMA to comply with directions given by the Secretary of State to promote value for money in hydrogen pipeline projects.
• New clause 72 allows for the modification of the Gas Act 1986 in relation to hydrogen.
• Consultation with the Gas and Electricity Markets Authority (GEMA) is required before exercising this power.
• The regulations under this clause are subject to the affirmative procedure.
• The company must be limited by shares.
• It must be wholly-owned by the Crown as defined under specific paragraphs.
• Once designated, the company is exempt from the requirement to use 'limited' in its name.
• The government published the British energy security strategy in April last year.
• Great British Nuclear (GBN) will be established as a Government company under the Companies Act 2006.
• Financial assistance can be provided to GBN in various forms, subject to conditions agreed by the Secretary of State.
• Annual reports and accounts must be submitted to Parliament.
• New clauses help facilitate transfers and provide compensation when necessary.
• Pension arrangements for transferred employees are addressed.
• Great British Nuclear (GBN) was launched in March 2023.
• GBN focuses on de-risking new nuclear development by co-funding projects at the early stage and acting as an expert adviser throughout the process.
• The competitive process to select SMR technologies commenced in April 2023, with a down-selection phase aimed for autumn.
• The drawdown selection process for Great British Nuclear is ongoing.
• The formal launch of the competition will take place on July 13, 2023.
• The UK government aims to have 24 GW of nuclear power on the grid by 2050.
• The process allows companies that do not need government support to participate in SMR development.
• The Secretary of State may give Great British Nuclear directions or guidance.
• Great British Nuclear must send an annual report after each reporting year ending on March 31st.
• Great British Nuclear's accounts and reports must be sent before the end of the filing period as per the Companies Act 2006.
• The Secretary of State can make transfer schemes to move property, rights, and liabilities between GBN bodies, former GBN bodies, and other designated entities.
• Transfer schemes may include provisions for compensation, shared ownership, apportioning property, and dispensing with formalities.
• Consultation is required before making a transfer scheme.
• New Clause 82 allows the Treasury to vary tax effects for things transferred under schemes.
• New Clause 83 permits the Secretary of State to direct persons to provide necessary information or assistance for making a transfer scheme.
• New Clause 84 enables the Secretary of State to reimburse individuals for expenses incurred in preparation for designating companies under Great British Nuclear provisions.
• The new clause allows pension arrangements for Great British Nuclear that correspond or are similar to those for the Independent System Operator and Planner.
• Regulations under this section must follow a consultation process before being made, as required by paragraphs 2(5) and 3(4) of Schedule 8.
• The Secretary of State can direct trustees of qualifying pension schemes, persons exercising functions on behalf of trustees, and employers to provide specified pensions information.