Overview

The Government has created new scope for local authorities to sell electricity which has been produced from renewables, by amending legislation which restricted this. The Local Government (Miscellaneous Provisions) Act 1976 gives local authorities in England and Wales power to sell heat but, except in prescribed cases, prohibits them from selling electricity which is not produced in association with heat.

That restriction prevented local authorities from selling to the national grid power produced from schemes using solar power, wind generation or hydropower. In 1976 there was little expectation of local authorities being involved in the energy generation market but the situation is now clearly very different and Government targets to combat climate change are unlikely to be met unless local authorities are encouraged to enter the renewables market.

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