Energy Act 2004

Energy Act 2004
Act of Parliament
coat of arms
Parliament of the United Kingdom
Long titleAn Act to make provision for the decommissioning and cleaning up of installations and sites used for, or contaminated by, nuclear activities; to make provision relating to the civil nuclear industry; to make provision about radioactive waste; to make provision for the development, regulation and encouragement of the use of renewable energy sources; to make further provision in connection with the regulation of the gas and electricity industries; to make provision for the imposition of charges in connection with the carrying out of the Secretary of State's functions relating to energy matters; to make provision for giving effect to international agreements relating to pipelines and offshore installations; and for connected purposes.
Citation2004 c. 20
Territorial extent 
Dates
Royal assent22 July 2004
Commencementvarious
Other legislation
Amends
Amended by
Status: Amended
Text of statute as originally enacted
Revised text of statute as amended
Text of the Energy Act 2004 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

The Energy Act 2004 (c. 20) is an act of the Parliament of the United Kingdom concerned with nuclear power, renewable and sustainable energy and energy regulation. Royal assent was granted on 22 July 2004.

Provisions

The act established the Civil Nuclear Constabulary. The act also established the Nuclear Decommissioning Authority.

The act contained measures to simplify regulations and to provide investor confidence in relation to marine renewable energy.

The act placed a duty on Ofgem to have regard to sustainable development.

Microgeneration was defined as the generation of electricity or heat from co-generation or renewable sources with an electrical capacity of less than 50 kW by the act.

Section 184

Section 184 creates a scheme to reduce the cost of electricity distribution in areas with high electricity distribution costs. The AAHEDC scheme specifically covers the north of Scotland, currently the only area which receives assistance. Part of the tariff covers Shetland, and the remaining tariff covers the rest of the north of Scotland area. Tariffs for the scheme are published by 15 July each year but they take effect retrospectively from the preceding 1 April. The scheme is operated by National Grid Electricity System Operator (ESO), the national transmission system operator, a subsidiary of National Grid plc. The tariff in 2022/23 is 0.040670p per kwh.

Part 4

Section 198 - Short title, commencement and extent

The following orders have been made under this section:

Notes

  1. ↑ Section 198(1).
  2. ↑ Section 198(3)–(4)
  3. ↑ Section 198(2).
  4. ↑ Section 198(1).

References

  1. ↑ Energy Act 2004: Introductory Text
  2. ↑ "Defend, deny, recover – The vital role of the Civil Nuclear constabulary". Defence Business. Retrieved 20 January 2026.
  3. ↑ "Nuclear clean-up cost up to £56bn". BBC News. 11 August 2005. Retrieved 3 August 2026.
  4. ↑ Todd, Paul (May 2012). "Marine renewable energy and public rights". Marine Policy. 36 (3): 667–672. doi:10.1016/j.marpol.2011.10.020.
  5. ↑ Grubb, Michael; Hinder, Ben; Dye, Laura; Nixon, Hannah (October 2025). "Regulatory Impact Assessment in the energy transition era: insights from the UK experience". Utilities Policy. 96 101943. doi:10.1016/j.jup.2025.101943.
  6. ↑ Keirstead, James (August 2007). "Behavioural responses to photovoltaic systems in the UK domestic sector". Energy Policy. 35 (8): 4128–4141. doi:10.1016/j.enpol.2007.02.019. ISSN 0301-4215. Archived from the original on 16 April 2024.
  7. 1 2 National Grid ESO, Charging Statement: Assistance for Areas with High Electricity Distribution Costs Scheme, effective from 1 April 2022, accessed 31 August 2022
  8. ↑ National Grid ESO, Assistance for Areas with High Electricity Distribution Costs (AAHEDC), accessed 31 August 2022

Sources