The Government’s Energy Bill received Royal Assent earlier this month and passed into law. The new Energy Act creates the framework to formally establish the Oil and Gas Authority as an independent regulator (taking the form of a Government company), so that it can act with greater flexibility and independence.

The OGA’s new powers include: access to external meetings; data acquisition and retention; dispute resolution; and sanctions.

The Energy Act also makes local communities the primary decision-makers on new onshore wind-power developments, and it brings forward the early closure of the Renewables Obligation subsidy scheme for new onshore wind developments in Britain. Over the past few months, the House of Lords had been battling the House of Commons over amendments to the Bill that would have extended the ‘grace period’ for the early closure.

The bill required projects to have obtained planning permission by 18 June in order to be eligible for the subsidy. An amendment tabled by Lord Grantchester would have granted eligibility to projects that had not received planning permission by the cut-off date but had already secured “democratic local consent”.

This amendment was defeated in the Commons, as was a second amendment extending eligibility to projects that went on to receive planning permission within three months of the cut-off date. On the evening of 17 May, the Lords gave in to the will of the Commons, voting down a third attempt to introduce an amendment. With no more amendments outstanding, the bill received Royal Assent and became law the following day.

Energy Secretary Amber Rudd (pictured) said: “The Energy Act is a vital part of our plan to ensure our families and businesses have access to secure, affordable and clean energy supplies they can rely on, while keeping bills down.

“By strengthening the OGA and giving it powers to drive greater collaboration and efficiency in the industry, this Act shows that the broad shoulders of the UK are committed to helping our oil and gas industry attract investment, support jobs and remain competitive for the future.”