LONDON (dpa-AFX) - Families and businesses in UK will benefit from a fairer energy system, cheaper bills and greater public control under landmark legislation introduced to Parliament Wednesday.
Building on last week's Budget, the government will bring forward amendments to the Energy Independence Bill to support plans to scrap standing charges on household gas bills, ending the daily charge paid even when no gas is used.
The move will give around 23 million households greater control over their energy costs, with around 60% of gas account holders expected to save an average of £45 a year, according to the Department for Energy Security and Net Zero.
The Bill will also put the decision to shift 75 percent of domestic Renewables Obligation costs from energy bills to public spending on a lasting legal footing, protecting savings already delivered to households.
It follows last week's Budget, which announced a £100 payment for up to 20 million households in England this winter, and further reforms to prevent unnecessary policy costs being added to energy bills.
Prime Minister Andy Burnham said, 'For too long, families have paid the price for an energy system that isn't working for them. Bills are too high and events around the world can send costs soaring. That's why we've taken immediate action to help people with energy bills, with £50 off the annual price cap and our new £100 energy payment for 20 million households. And this Bill will make the changes needed for the long-term: protecting people when energy companies let them down, giving communities a stake in the power produced on their doorstep, and building more cheap, green power here at home.'
'Together, these changes will bring bills down for good, give families greater security and put Britain back in control of its energy future,' he added.
Other measures in the Bill include stronger consumer protections and putting power in local hands.
The Bill gives Ofgem tougher powers to crack down on rogue energy companies and bosses, including unfair bonuses, while regulating energy brokers to tackle mis-selling and hidden commissions, expected to save businesses around £100 million a year.
The Bill requires developers to offer communities up to a 20% stake in new renewable projects, alongside mandatory community benefits so local people share in the rewards.
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