Energy Policy - The UK Energy Bill of 2012/23 - Essay Example

The UK Energy Bill Report The UK Energy Bill of 23 The energy Bill of aims at the de-carbonization of the UK as wellas reforming the market for electricity. The bill enables the state to set a target to be met for the de-carbonization of the electricity sector by 2030. On the other hand, the reforms on the electricity market encompasses: contracts for difference (CFD) aimed at luring companies to invest in the low carbon energy generation; capacity market to securitize the supply of electricity aimed at reducing the demand for electricity; and Conflict of Interest and Contingency Arrangement to ascertain that institution that deliver the schemes are purposely fit. In addition, the reform advocates for contracts of investments especially long term contracts so as to enhance early investment before the CFD regime. The power purchase agreement is also embedded in the reform to enable access to the market while on the renewable transitional, the arrangements for the mandated scheme is catered for. The provision for limitation of carbon emission has not been left out in the provision of Emission Performance Standard (EPS) (2). The other acts in the bill entail regulation of nuclear, strategy and policy statement, and consumer protection. The regulation of nuclear power plants is aimed at providing safety and security. Furthermore, the consumer protection act minimizes the number of tariffs on energy to the locals. The act enables the Ofgem to extend its licensing to other parties besides the enforcement power on Ofgem to supervise the energy business that contravene licensing conditions on electricity and gas. If consumers suffer from the breach the Ofgem provides redress. Finally, the consumer protection act amended the legislation on energy conservation and warm homes (2). Criticism of the bill The bill did not elaborate more so on the consumer protection how to deal with the menace of the ever increasing fuel prices. It failed to provide regulations on the big energy firms whose dominance have apparently hampered competition. Kevin (1) questions where the locals’ money go to in the energy sector. He illuminates that in each household the average yearly bill for gas and electricity is approximately 1,270 pounds yet the payment is pegged on the consumption and payment method. Las year the average prices for electricity for UK was forth highest in the G7 member nations. In comparison to the US, their prices for electricity and gas were the lowest. The diagram below illustrates the pricing of gas in the 15 EU countries and US. The soaring prices have left more questions than answers such as: the margin of profits the energy firms realize from the domestic consumer; where the consumers’ money for consumption of energy are channeled to; and the likely implications of freezing of prices. Besides the above mentioned concern, a scheme for subsidy by the nation of the renewable entailed in the contract for difference is likely to have an influence of the initiative on European carbon minimization or reduction. The probability of investors injecting capital into solar or wind sector on the basis of energy trade schemes with the concept of contract for difference is low. Moreover, if the price of carbon fall the there is likelihood that the companies will burn coal to the maximum (4). The EU and international bodies’ legislation to be met The EU target for the emission of the greenhouse gases (GHGs) by 2020 has been set at approximately 30%. The union also has other directive schemes such as the Emission Trading Scheme aimed at sub optimizing the emission of the above mentioned gases and issuance of efficient energy especially from the intensive industry. The International Sustainability Energy Organization (ISEO) advocates for renewable energy and efficiency of the energy. The body has set a target where countries are mandated with the task of ensuring that there is sufficient supply of energy in a bid to meet the needs of both the developed and non-developed countries. The UK bill highlighted above does not illuminate at all the various strategies that the UK seeks in the international diplomacy to assist the third world countries. ISEO (3) reports that The ISEO also advocates for not only efficiency of energy but also the tackle the issue of climate change which has persistently continued to consume the globe. The bill did not illustrate as per the standards set by EU, ISEO, and WMO among other international bodies on the other measure the UK government was putting in place to eradicate emission of the greenhouse gases besides the emphasis on carbon reduction. The science of climate change in the contemporary society Yan (5) explains that climate change is a gradual process in that there is no absolute certainty on its onset. Most researches have shown that greenhouse gases are the great drivers of the phenomena. These gases result into global warming which after a longer period of time results into climate change. However, a research conducted by researchers from China and the US on albedo and evapotranspiration reveal that deforestation in large scale is likely to accelerate climate change. In addition, it would have implications in the production of food in the global arena. Albedo and evapotranspiration are the sole drivers of influencing changes in the local temperature. Forestry play a crucial factor in the local climate and if left unattended to will eventually result into disaster. There is little comprehension of the local impact on the changes of forest cover by management practices. The science behind this insinuation is that in terms of albedo, the forests have dark surface. Dark surfaces lower the albedo (sun’s radiation reflected from the surface of the earth) thus little reflection of solar radiation though the forests absorb more of the radiation. Consequently, this results into warming. However, the forest more rainwater after which it is transpired as water vapour thus resulting into evapotranspiration. Evapotranspiration leads to cooling. The mechanism of cooling and warming through evapotranspiration and albedo can be incorporated into the management practices that are aimed at finding solutions to climate change. Technologies that could help prevent carbon emission and climate change There have been remarkable technologies that are used to tap the renewable sources of energy that are environmentally friendly as these technologies eradicate emission of green house gases holistically. For instant, the solar energy is tapped using solar concentrator or solar PV devices which in turn can be used for electricity distribution. The solar concentrators have surfaces that concentrate energy from the sun thus providing the energy used for heating purpose. On the other hand, the solar PVs have photovoltaic cells that have semi-conductor layer. Exposure of this device into sunlight results into the layers producing electric energy. The wind devices are also being used to convert wind into energy such as electric. In addition to the above mentioned, there is also a technological device called biogas digest which attempts to tap energy form wastes such as dead organisms. The key priorities that the new bill should address Kevin (1) points out that there are several issues in the bill that can be amended for the betterment of not only the consumers but also the energy sector so as to encourage investment in the renewable sources. The Contract for difference is likely to hamper investors from investing in the renewable energy sources as well as the already existing industries may continue using coal to produce energy. In addition, more legislation on consumer protection act should be review by sieving the already existing provisions in the screen of reality so as to protect the consumers from the soaring prices of gas and electricity. The amendment should be in such a way that the big six energy provides in the country are regulated in a manner that allows competition in the sector. Reference List: (1) P. Kevin. Energy bills: Where does my money go? 2014 (online). Available http://www.bbc.com/news/business-24238708 (Accessed: 2nd April 2015) (2) ISEO.Energy Law and Sustainability Development. 2015 (online). Available http://www.uniseo.org/legal.htm (Accessed: 2nd April 2015) (3) P. Vern, P. Energy Bill amendment could boost green construction. 2013. Available http://www.building.co.uk/sustainability/sustainability-news/energy-bill-amendment-could-boost-green-construction/5050066.article (Accessed: 2nd April 2015) (4) A. Amy & G. Emma. Energy bills: Could you cut your bills by switching and where are the best deals? (online).Available http://www.thisismoney.co.uk/money/bills/article-1607475/Energy-bills-As-prices-rise-winter-really-worth-switching-best-fixed-rate-deals.html (Accessed: 2nd April 2015) (5) L. Yan et al. Local cooling and warming effects of forests based on satellite observations. Nature Communications 6: 6603 DOI: 10.1038/ncomms7603, 2015 (online). Read More