Energy Independence Bill Proposes Bill and Grid Changes

The Energy Independence Bill proposes changes to household energy costs, industry oversight and electricity infrastructure. Parliament’s record shows that it was introduced and received a first reading in the Commons on 4 November 2026. Its scope also covers heat networks, hydrogen power, offshore workers’ employment rights and North Sea petroleum activity.

The Department for Energy Security and Net Zero said planned amendments would abolish household gas standing charges, payable each day regardless of consumption. The government estimates that around 23 million households could have greater control over costs, with approximately 60% of gas-account holders saving £45 annually on average.

According to the department, the bill would provide a statutory basis through March 2029 for publicly funding three-quarters of domestic Renewables Obligation costs. The government puts the existing arrangement’s reduction in average household bills at about £90 annually; that arrangement currently needs renewal at six-month intervals.

The department said separate provisions would authorise the Secretary of State to create support schemes using secondary legislation. Options include discounts, adjustments to usage rates or standing charges, relief from account debt, and energy-efficiency products or advice. Direct payments would be possible where credits to bills cannot be used. Assistance and eligibility would depend on future schemes, with the government stating that the powers are intended to cover households outside the statutory fuel-poverty definition.

For privately rented housing, the department said councils would receive additional energy-efficiency enforcement powers, including civil penalties capped at £30,000 for domestic breaches. Its forecast of average annual savings of about £210 applies to upgraded rented homes when the planned Energy Performance Certificate C requirement starts on 1 October 2030.

Under the department’s description of the bill, Ofgem would gain additional enforcement and consumer-protection powers, while energy brokers and price-comparison services would come under regulation. Proposed powers include setting standards, directing compensation, imposing fines and banning operators. The government estimates that tackling broker mis-selling and undisclosed commissions could reduce business costs by more than £100 million a year.

The department said electricity-market provisions, called Reformed National Pricing, would allow coordinated revisions to licences and industry codes, the market’s binding rules. It said these powers would support adjustments to network charges and to balancing and trading arrangements, enabling the system operator to match demand with supply in real time.

A planned amendment would establish Great British Grid under public ownership, according to the government. Proposed revisions to permissions, land access and infrastructure procedures are intended to accelerate network building and connections, while preserving safeguards for communities, landowners and the environment.

For new ground-mounted solar and onshore wind developments exceeding 5 megawatts, the government proposed enforceable community-benefit agreements with minimum contributions and more transparency. It also said developers would have to offer communities an ownership share of up to 20% in new renewable developments.

The department’s North Sea proposals would stop new exploration licences for oil and gas but retain arrangements for managing existing offshore fields. Transitional Energy Certificates could authorise further production in qualifying circumstances involving existing fields, nearby areas linked to licensed fields, and incidental production. They would not authorise exploration in North Sea areas that are currently unlicensed.

* This article is based on publicly available information at the time of writing.