Energy in the UK 'Queen's Speech'

Energy in the Queen's Speech

Quick reaction from Helmsley Energy:

Key Takeaways for Energy:

• A new Energy Security Bill focused on energy supply, new technologies and costs to consumers.

• A Bill will establish a UK Infrastructure Bank with a mandate to support the Net Zero transition.

• A 'Levelling Up' Bill will create new fiscal, strategic planning and consenting rules for local authorities.

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What will the UK's Energy Security Bill include?

• Establish the Future System Operator, spinning the body out from National Grid.

• Create subsidies and frameworks for hydrogen and Carbon Capture and Storage technologies

• Reform retail markets, extending the energy price cap in a new iteration.

• Help low-carbon heating by regulating heat networks, trialling large-scale hydrogen and creating standards for heat pumps.

• Assurances for energy security - reforming liquid fuel security measures and possibly reconsidering strategic gas reserves.

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Comment from Helmsley Energy

Benedict McAleenan, Helmsley Energy Managing Partner, said:

"Although the Energy Security Bill is prompted by the Ukraine crisis, UK energy markets have long needed an update.

Alongside the 'Review of Electricity Market Arrangements', the Bill could lead to the biggest year of change for UK energy in a decade."

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Rosa Stewart, Senior Advisor at Helmsley Energy, said:

"The Energy Security Bill will provide crucial direction for the management of the electricity system, through establishing a Future System Operator.

This new dedicated body takes over functions from National Grid, focusing on navigating the grid through a rapid energy transition.

This is one of the most significant changes in recent memory and will be key to the success and pace of the UK’s Net Zero ambitions.”

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Jamie Horton, Consultant at Helmsley Energy, said:

"Legislating on new business models for low carbon hydrogen and carbon capture will be a big move towards rolling out these key technologies at scale.

This will be one of the world's first frameworks for industrialising CCS and hydrogen, both of which are considered vital for combatting climate change.

A key challenge is going to be sequencing. For hydrogen, businesses are expected to bid for these business models in 2023, but not all regulations will be in place until 2025. Government needs to keep up momentum on several fronts."

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