Lord Offord of Garvel (Con)

My Lords, these regulations represent an essential step in ensuring the continued security of electricity supply in Great Britain. This SI builds on the work initiated by the previous Conservative Government, which reviewed electricity market arrangements in 2022. The task in hand is to amend the existing provisions of the Energy Act 2013 following the UK’s withdrawal from the European Union and align our national electricity market with the post-Brexit reality. These amendments are crucial to ensure that the capacity market can continue to operate effectively and flexibly in a changed regulatory environment. As we transition towards a low-carbon energy future, securing a reliable electricity supply requires robust mechanisms that incentivise investment in reliable and flexible energy sources. The amendments introduced by these regulations are intended to bolster the capacity market’s role in supporting the security and reliability of electricity supply in a period of evolving energy needs and shifting market conditions. These changes enable the UK to pursue an independent course, while ensuring that the capacity market continues to provide the stability and security our energy grid requires. By revoking outdated EU provisions, the UK can define its own market mechanisms that better reflect national priorities, including transition to a low-carbon energy future and enhancing energy resilience across Great Britain.