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Energy Bill completes passage through Parliament

25 October 2023

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The Energy Bill was given Royal Assent on Thursday 26 October and is now an Act of Parliament (law).

The Energy Bill aims to increase energy reliability, while supporting the UK's climate change commitments and minimising consumer costs, by leveraging investment in clean technologies and maintaining the safety, security and resilience of energy systems.

Consideration of amendments 

The bill was considered by the House of Lords between 6 July 2022 and 24 April 2023 before passing to the House of Commons. The Lords then considered the first round of Commons amendments on 11 September.

Community energy supplies

During the first round of ‘ping pong’ in the Lords, members agreed to insert an alternative section into the bill which requires the government to consult and report on barriers to local community energy supplies, and present its findings to Parliament.

This clause was removed in the House of Commons on Wednesday 18 October on the grounds that the government has already committed to consulting on barriers to community energy schemes and the introduction of a set timeframe is detrimental to this cause.

Following the debate on Tuesday 24 October, members of the Lords accepted the Commons disagreement and the outstanding issue was resolved.

Catch up

Explore further information

Read background on the bill in the House of Lords Library Energy Bill briefing.

What's happened so far?

Consideration of amendments day one: Tuesday 12 September 

Members of the Lords considered Commons changes (amendments) to the bill on 12 September.

Lords divisions

There were three divisions (votes) on proposed changes to the bill.

Energy performance statement

During the Lords consideration of the bill, members inserted a new clause into the bill which required the government to produce a national action plan for warmer homes and businesses.

This clause was then removed in the House of Commons.

Lords members proposed and voted on an alternative clause, which requires the government to present parliament with an energy performance statement for the standard of future homes in England.

Members voted 191 in favour and 216 against, so the new clause was not inserted into the bill.

Prohibition of new coal mines

In their report stage consideration of the bill, members of the Lords agreed to a new clause which prohibited the opening of new coal mines by either the Coal Authority or its successors.

After this was removed by MPs in the Commons, Lords members voted to insist the clause remain a part of the bill.

Members voted 186 in favour and 214 in against, so the clause was not reinstated.

Community energy supplies

Again in report stage, Lords members agreed a new clause which provides framework to support the growth of Community and Smaller-scale Energy Schemes, including export guarantees.

This clause was also removed in the House of Commons, with MPs reiterating the stance that the government has already committed to consult on the barriers the energy sector faces when developing projects.

Lords members voted on an alternative amendment, which requires the government to consult and report on those barriers to local community energy supplies, and present its findings to parliament.

Members voted 208 in favour and 205 against, so the new clause was agreed and inserted into the bill.

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Third reading: Monday 24 April

Third reading is a chance for members to ‘tidy up' a bill, making small changes to ensure it is effective.

No changes were suggested ahead of third reading. Members discussed the progress of the bill at the conclusion of its Lords stages.

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Report stage day two: Monday 17 April

Report stage is an extra chance for members to closely scrutinise elements of the bill and make changes.  

Proposed changes   

Members speaking on day two of report stage put forward amendments (PDF) (changes) to the bill to be discussed. 

The amendments covered topics including:

  • powers to introduce social energy tariffs
  • the role of energy authorities in delivering the future energy system
  • reducing the effects of offshore wind on marine habitats.

Lords divisions

There were four divisions (votes) on proposed changes to the bill. 

Stopping new coal mines

The House voted on an amendment preventing any new coal mines being opened by the Coal Authority or its successors.

Members voted 197 in favour and 194 against, so the change was made.

Low-carbon heating

Members voted on a change requiring the government to bring forward an action plan with deadline proposals for energy efficient and low carbon heating for homes and non-domestic properties.

Members voted 227 in favour and 194 against, so the change was made.

Ofgem responsibilities

Members also voted on a change to ensure that meeting the UK's net zero targets becomes a specific part of Ofgem's general responsibilities.

Members voted 208 in favour and 182 against, so the change was made.

Community and small-scale energy schemes

The House voted on a suggested change to provide a framework to support the growth of a Community and Smaller-scale Electricity Export Guarantee Scheme.

Members voted 197 in favour and 186 against, so the change was made.

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Report stage day one: Tuesday 28 March

Proposed changes   

Members speaking at report stage put forward amendments (PDF) (changes) to the bill to be discussed. 

The amendments covered topics including:

  • duty of the Gas and Electricity Markets to assist in the delivery of Net Zero
  • payments to energy market participants
  • appointment of a hydrogen production allocation body.

Vote on supplier levies

There was also one division (vote) on a proposed change to the bill.

The amendment aims to restrict government powers to placing levies only on gas shippers, and not gas or electricity suppliers, in order to protect household consumers from the financial responsibility.

Members voted 170 in favour and 160 against, so the change was made.

Catch up

Committee stage day six: Monday 16 January

Proposed changes

Members speaking on day six of committee stage put forward amendments (PDF) (changes) on subjects including:

  • strategic priorities of the government's energy policy
  • gas and oil production
  • energy storage targets.

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Committee stage day five: Monday 19 December

Proposed changes

Members speaking on day five of committee stage put forward amendments (PDF) (changes) on subjects including:

  • heat networks and their energy sources
  • protection for consumers that use heat networks, such as district heating schemes
  • community energy generation
  • energy smart appliances.

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Committee stage day four: Wednesday 14 December

Proposed changes

Members speaking on day four of committee stage put forward amendments (PDF) (changes) on subjects including:

  • establishing a new nuclear site licensing regime
  • limiting temperature increase to 1.5 degress celcius as in the Glasgow Climate Pact 2021
  • a competitive tender process for electricity.

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Committee stage day three: Monday 12 December

Proposed changes

Members speaking on day three of committee stage put forward amendments (PDF) (changes) on subjects including:

  • requiring plans for low-carbon heating of homes that cannot have heat pumps
  • adding 'blue hydrogen' to low-carbon heat schemes
  • incentivising low-carbon transport.

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Committee stage day two: Wednesday 7 September

Proposed changes

Members speaking on day two of committee stage discussed amendments (changes) on subjects including carbon capture, the use of hydrogen and the storage of gas in the UK.

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Committee stage day one: Monday 5 September

Proposed changes

Members speaking on day one of committee stage discussed amendments (changes) to the bill covering the affordability, cleanliness, resilience and security of UK energy, including:

  • net zero 2050 targets
  • clearly setting out the purpose of the bill and legislating for a strategy and policy statement
  • energy storage and carbon capture
  • the economic regulator and its relationship with the Secretary of State.

Catch up

Second reading: Tuesday 19 July

Members discussed the main issues in the bill during the second reading debate, including:

  • safety, security and resilience of the UK’s energy system
    the challenge of climate change
  • investment in clean technologies and reducing the UK’s dependency on global fossil fuel markets
  • electric vehicle charging points
  • smart meter rollout and energy efficiency in housing
  • disposal of radioactive waste and clean-up of the UK’s decommissioned nuclear sites
  • offshore wind projects
  • carbon capture usage and storage
  • heat network zoning in England.

Members speaking

Lord Callanan (Conservative), Minister for Business, Energy and Corporate Responsibility, opened the debate and responded on behalf of the government. 

Members speaking included: 

Find out more about the issues discussed: catch up on Parliament TV or read the Lords Hansard transcript.

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