This week, the Energy Bill was agreed by both Houses and has now received royal assent. Want to find out more and what this means for the OGA?
What is the Energy Bill?
The Energy Bill was introduced to the House of Lords on 9 July 2015. It creates a number of changes in law designed to help drive forward the government’s energy goals and commitments. It creates the framework to formally establish the OGA as an independent regulator, taking the form of a government company (GovCo), and giving it new powers to better support the North Sea industry.
What is royal assent?
Once a bill has completed all the parliamentary stages in both the House of Commons and House of Lords, it is ready to receive royal assent. This is when the Queen formally agrees to make the bill into an Act of Parliament (law).
When royal assent has been given, an announcement is made in both Houses – by the Lord Speaker in the Lords and the Speaker in the Commons.
The Queen can give royal assent in person but this has not happened since 1854. The Queen’s agreement to give her assent to a Bill is a formality.
What’s the latest update?
Following a period of ‘Ping Pong’ (when a Bill passes back and forth between the two Houses debating amendments to the Bill), the Energy Bill was agreed by both Houses on Tuesday 10th May. It received Royal Assent on 12th May.
Why does it matter?
Now the Bill has received Royal Assent, it will become an Act (Law).
What difference will it make to the OGA’s powers?
No difference immediately. In order for OGA to become a GovCo, there are a number of regulations that need to be approved by Parliament. The OGA’s suite of powers doesn’t come into force until that point. The Government is still on track to establish the OGA as a GovCo later this year.
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