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GLOSSARY
A legal document enabling the donor to appoint one or more attorney or donees to make decisions on their behalf in respect of their property and financial affairs. The attorneys’ powers under a registered EPA continue after the incapacity of the donor. It has not been possible to create a new EPA since 1 October 2007.
GLOSSARY
The NDA came into existence in July 2004 when the Energy Act received Royal Assent. The Act was introduced to give the NDA its legal status and the power to fulfil its responsibilities.
GLOSSARY
Legislation containing provisions relating to the management and disposal of waste produced at nuclear installations, as well as the finances associated with the decommissioning of nuclear facilities (see FDP).
GLOSSARY
Put in place Electricity Market Reform measures to attract the investment necessary to replace current generating capacity. Includes provisions for: (a) Contracts for Difference: Long term contracts to provide stable and predictable incentives for companies to invest in low-carbon generation; (b) Capacity Market: To ensure the security of electricity supply including provisions to allow Electricity Demand Reduction to be delivered. (c) Emissions Performance Standard: To limit carbon dioxide emissions from new fossil fuel power stations. The Act also includes provisions on de-carbonisation which enable the Secretary of State to set a 2030 de-carbonisation target range for the electricity sector in secondary legislation. Following the recent adoption of the fifth carbon budget the UK is committed to securing a reduction in CO2 emissions by 57% by 2030 on 1990 levels. The Act also placed the Office for Nuclear Regulation on a statutory footing as the body to regulate the safety and security of nuclear stations and set out its purposes and functions.
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. Background At the time the Energy Act 2013 (EA 2013) came into force, and to an extent to this day, the UK faced real and serious challenges in relation to its electricity infrastructure. These included: • developing the low carbon generation capabilities necessary to meet its net zero carbon targets (as prescribed under the Climate Change Act 2008, as amended by the Climate Change Act 2008 (2050 Target Amendment) Order 2019, SI 2019/1056) • replacing existing power generation assets that are reaching the end of their lives • upgrading grid infrastructure to meet the demands put upon it by the existence of a greater proportion of intermittent and inflexible generation forms (such as wind and nuclear respectively, as distinct from conventional and nimble forms of power generation such as coal-fired turbines) and a growing population, and • achieving improvements in energy efficiency, particularly in relation to aged and inefficient building stock, to try to curtail energy demand The overall investment needed in power infrastructure has been estimated
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. The Energy Act 2016 (EnA 2016) received Royal Assent on 12 May 2016 (see Table A below for details) Background to EnA 2016 In June 2013, the former Secretary of State for Energy and Climate Change, Edward Davey, commissioned Sir Ian Wood to conduct an independent review of UK Continental Shelf (UKCS) oil and gas recovery, and in particular to consider how economic recovery could be maximised (Wood Review). Key recommendations of the Wood Review were: • government and industry should work together to develop a strategy for maximising the economic recovery from the UKCS (MER UK Strategy) • stewardship should be moved to an arm’s length body which is well resourced and funded by the industry • additional powers should be secured for that body so that it can implement the MER UK Strategy, and • it should work with industry to develop and implement new strategies on exploration and decommissioning cost reduction The MER UK Strategy was implemented via sections 9A-9I of the
NEWS
The Energy Charter Conference has approved significant decisions to modernise the Energy Charter Treaty (ECT). These include amendments to the ECT, modifications to its annexes and changes to related understandings, declarations and decisions. The Energy Charter secretariat will serve as interim depository from 2 February 2025. Provisional application of the amendments is set for 3 September 2025, with an opt-out option available until 3 March 2025. The amendments will fully enter into force after ratification by three-quarters of contracting parties. These changes represent a substantial update to the ECT framework, with potential implications for energy investment and trade relations among participating states.
NEWS
The Energy Charter Secretariat has released the International Energy Charter Annual Report 2023. The report provides a summary of the International Energy Charter’s activities and examines the Jordanian Acting Chairmanship of the Energy Charter Conference.
PRACTICE NOTES
Energy Company Obligation (ECO) replaces Carbon Emissions Reduction Target (CERT) and Community Energy Saving Programme (CESP) The Energy Company Obligation (ECO) was introduced in January 2013 to replace the Carbon Emissions Reduction Target (CERT) which ran between 1 April 2008 and 31 December 2012 and the Community Energy Saving Programme (CESP) which ran between 1 October 2009 and 31 December 2012. CERT (which replaced the Energy Efficiency Commitment) required certain gas and electricity suppliers to achieve targets for reducing carbon emissions within domestic properties and CESP aimed to reduce carbon emissions by requiring gas and electricity suppliers and electricity generators to deliver energy saving measures to domestic consumers in specific low income areas of Britain. What is the ECO? ECO works alongside the domestic Green Deal in providing support and funding for energy efficiency improvements in existing properties, but is focused on supporting the installation of energy efficiency measures in low income households and areas and those harder to treat properties, where the most effective carbon saving measures don’t meet
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. What is the ECO? The ECO is an energy efficiency scheme that requires large energy suppliers to deliver energy efficiency measures to existing domestic premises. It requires the provision of support and funding worth approximately £640m every year (in 2017 prices). Alongside the domestic green deal, it is focused on supporting the installation of energy efficiency measures in low income households and areas, and those harder to treat properties. The ECO replaced previous schemes designed to reduce carbon emissions and deliver energy savings within domestic properties—the Carbon Emissions Reduction Target and the Community Energy Saving Programme. The ECO has four policy aims: • the alleviation of fuel poverty and assisting with the achievement of fuel poverty targets • the reduction of carbon emissions • reducing the costs of meeting the UK’s renewable energy target through the promotion of energy efficiency, and • the encouragement of innovation in the industry The legislative powers to create the ECO are derived from
PRACTICE NOTES
What is the ECO? The ECO is an energy efficiency scheme that requires large energy suppliers to deliver energy efficiency measures to existing domestic premises. It requires the provision of support and funding worth approximately £1bn every year (in 2022 prices). It is focused on supporting the installation of energy efficiency measures in low income households and areas, and those harder to treat properties. The ECO replaced previous schemes designed to reduce carbon emissions and deliver energy savings within domestic properties—the Carbon Emissions Reduction Target and the Community Energy Saving Programme. The ECO has four policy aims: • the alleviation of fuel poverty and assisting with the achievement of fuel poverty targets • the reduction of carbon emissions • reducing the costs of meeting the UK’s renewable energy target through the promotion of energy efficiency, and • the encouragement of innovation in the industry The ECO is implemented through secondary legislation, the Electricity and Gas (Energy Company Obligation) Order 2022, SI 2022/875 (ECO 2022 Order). The ECO 2022 Order was amended
PRACTICE NOTES
What is the ECO? The Energy Company Obligation (ECO) is an energy efficiency scheme that requires large energy suppliers to deliver energy efficiency measures to existing domestic premises. It requires the provision of support and funding worth approximately £1bn every year (in 2022 prices). It is focused on supporting the installation of energy efficiency measures in low income households and areas, and those harder to treat properties. The ECO replaced previous schemes designed to reduce carbon emissions and deliver energy savings within domestic properties—the Carbon Emissions Reduction Target and the Community Energy Saving Programme. The ECO has four policy aims: • to deliver energy efficiency measures to a greater pool of households challenged by higher energy bills • the alleviation of fuel poverty and the achievement of fuel poverty targets • to contribute to carbon reduction targets in the domestic sector • to reduce the costs of meeting the UK’s net zero target through promoting more efficient energy use The ECO is implemented through secondary legislation, the Electricity and Gas (Energy Company Obligation)