The Energy Bill has today passed into law having received Royal Assent.
Central to the Bill is the government’s Electricity Market Reform (EMR) package which can now swing into action after passing this final legislative hurdle.
By guaranteeing clean energy producers a minimum price for the electricity they supply (known as Contract for Difference), the aim of EMR is to unlock the £110bn of private investment needed by 2020 to replace ageing fossil fuel generation capacity.
The Department of Energy and Climate Change (DECC) estimates that the measures will create over 200,000 jobs in the renewables sector and reduce carbon emissions by 20 million tonnes – 25 percent of current annual household emissions.
Energy secretary Ed Davey said: “We have driven the Energy Bill through Parliament on time to send out a clear signal to investors and industry. We have delivered the certainty they need and confirmed Britain’s position as one of the most attractive countries in the world to invest in energy generation.
“We are now able to build on the measures already in place to deliver cleaner energy, affordable bills, energy security and the creation of thousands of skilled green jobs across the UK.”