This Act establishes a legislative framework for "decarbonisation" of energy producing plants and delivering secure, affordable and low carbon energy. It gives the Secretary of State a power to set or amend a decarbonisation target range, which is a target range for the level of carbon intensity of the electricity generation sector in the United Kingdom. The Act principally provides with respect to a Electricity Market Reform to: ensure the future security of electricity supplies, drive the decarbonisation of our electricity generation, and minimise costs to the consumer. A specific contract, the contract for difference (CFD), provides developers of eligible low carbon electricity generation with a long term contract that provides for a stable revenue stream which facilitates investment in low carbon. The Act further regulates the electricity market to mitigate future risks to the security of electricity supplies and to ensure fair competition. The Act also establishes the Office for Nuclear Regulation and, sets out the purposes of the Office and provides powers to the Secretary of State to make nuclear regulations so the legislative framework can allow for flexibility in the regulation of the nuclear industry and for the regime to react effectively in this evolving area.
United Kingdom of Great Britain and Northern Ireland · 2013-12-18