Dec. 12 (Bloomberg) -- The U.K. Parliament passed an energy bill to restructure the electricity market by establishing long- term contracts guaranteeing the price paid to generators for low-carbon power.
The bill passed its final parliamentary hurdle late yesterday after members of the upper chamber, the House of Lords, voted to reject an amendment that sought to curb carbon emissions from old coal-fired power plants, according to a statement today on Parliament’s website. That vote brought the Lords in line with the House of Commons.
“The bill will be given royal assent and become law,” according to the Parliament website. It didn’t provide a date for when the law will be given royal assent.
Provisions in the law will help the government spur the 110 billion pounds ($180 billion) of investment it says is needed to replace aging power plants and upgrade the power grid. Along with the contracts-for-differnence designed to boost renewables and nuclear power, the bill also introduces a market for spare generation capacity that would benefit gas-fired stations.
--Editors: Reed Landberg, Tony Barrett