To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to his Answer of 19 June 2019 to Question 264294, if he could clarify where in Part 1 of the Electricity Act 1989 (Exemptions from Prohibition) provision is set out for Ofgem to have consideration of decarbonisation.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has of made of the legal enforceability of the guidance on environmental and social policies he is empowered to issue under Part 1 Section 4AB of the Gas Act 1986 and Part 1 Section 3B of the Electricity Act 1989.
Ofgem has a statutory duty to have regard to guidance on social and environmental matters issued by the Secretary of State when carrying out its functions, as set out in Part 1 Section 4AB of the Gas Act 1986 (GA86) and Part 1 Section 3B of the Electricity Act 1989 (EA89). The Parliamentary procedure for this guidance is also set out in Section 3B EA89 and Section 4AB GA86.
Under subsection 1A of section 3 of the EA89 and subsection 1A of section 4AA of the GA86 respectively, Ofgem’s principal objective is to protect the interests of existing and future consumers, including their interests in the reduction of emissions of targeted greenhouse gases.
To clarify the response of 19 June, it is not section 5 but subsection 5 of Part 1, section 3A and 4AA of the EA89 and GA86 respectively that sets out Ofgem’s statutory duty to have regard to the effect on the environment of the generation, transmission, distribution or supply of electricity and gas.