Summary
The Electricity Act 1989 privatised the electricity supply industry and established the regulatory framework that continues today. It created the licensing regime for generation, transmission, distribution, and supply, established the regulator (now Ofgem), and imposed duties regarding security of supply and environmental obligations.
Key Points
- Creates licensing system for electricity generation, transmission, distribution, supply (Part I)
- Establishes principal objective of protecting consumer interests (s.3A)
- Places duty on regulator to have regard to security of supply and environment (s.3A)
- Creates electricity codes including Grid Code and CUSC (s.33-34)
- Gives National Grid role as system operator (balancing supply and demand)
- Provides for competition in supply and meter point administration
Parts & Sections
Amendments History
2013 — Energy Act 2013
Introduced Electricity Market Reform including Contracts for Difference (CfD) and Capacity Market mechanisms to support low-carbon generation.