Subsidy Control Act 2022

Laws and Policies

CCLW

CCLW national policies

Subsidy Control Act 2022 (Schedule 2: Energy & Environment Principles)

Approved

This document sets the UK's subsidy control regime (replacing the EU regime).&nbsp;<br><br>Part 2 of the Act imposes requirements that apply to the giving of subsidies or the making of subsidy schemes. According to Part 2, a public authority must consider the energy and environment principles before deciding to give a subsidy (or make a subsidy scheme) in relation to energy and environment, and must not give the subsidy (or make the scheme) unless it is of the view that the subsidy is consistent with those principles.&nbsp;</div><div><br>Part 3 contains exemptions from the subsidy control requirements, notably&nbsp; for natural disasters and other exceptional circumstances and emergencies;</div><div><br>Part 4 provides for the functions of the CMA in relation to the application of the subsidy control requirements.</div><div><br></div><div>Part 5 contains provisions relating to the enforcement of the subsidy control requirements.</div><div><br>The Act has a whole schedule (Schedule 2) on environmental principles for the issuance of subsidies.&nbsp; This schedule notably states that subsidies in the form of compensation for electricity-intensive users given in the event of an increase in electricity costs resulting from climate policy instruments shall be restricted to sectors at significant risk of carbon leakage due to the cost increase.