The Energy Prices Act 2022: A barrier to net zero?

Abstract

This legislative note evaluates the recently introduced Energy Prices Act 2022, particularly with respect to the impact that it might have on the renewables industry and the UK's ability to meet its climate change targets through the installation of renewable energy technology. The Act comes at a time where the UK and many other countries are gripped by both a global energy crisis and a cost of living crisis which has resulted in significant struggles, with some households in the UK being forced to choose whether to heat and power their homes or pay for food. The Energy Prices Act 2022 was introduced to reduce the financial burden of energy bills, and also to limit the profits made by low carbon generators. Since the enactment of the Act, further developments have been made in both of these fields. This legislative note will evaluate the contents of the Act itself, along with the further developments which have taken place and will analyse the potential impact that these changes could have on the renewables industry.