Guidance

Energy Independence Bill overview

Published 4 November 2026

Factsheet relating to the Energy Independence Bill.

Summary 

Energy is an everyday essential. Yet for too long families and businesses have paid the price for an energy system that is not working in their interests.

When global fossil fuel prices spike, bills rise. When homes are poorly insulated, people pay more than they should to keep warm. And when markets do not work fairly, consumers can be left without the protections they deserve.

The Energy Independence Bill is about fixing that.

The Bill introduces a package of reforms to build an energy system that works for consumers: delivering a fairer deal for households and businesses, helping people cut their energy use through warmer homes, making sure communities benefit from local energy projects, and securing more homegrown clean power so Britain is less exposed to volatile global fossil fuel markets.

Together, these measures will help put more money in people’s pockets, strengthen energy security and support good jobs and investment across the country.

What are the government’s objectives in legislating? 

Deliver a fairer deal for consumers

Consumers should have confidence that the energy system is working in their interests.

The Bill strengthens the role of Ofgem as a consumer champion, equipping the regulator with tougher powers to protect households and businesses, crack down on unfair practices and keep pace with a rapidly changing energy market.

It also gives government greater flexibility to support vulnerable households when needed and locks in measures that reduce costs on bills.

Upgrade homes and empower communities

The best way to cut energy bills is to upgrade, electrify and insulate homes to ensure they are more energy efficient.

The Bill enables delivery of the Warm Homes Plan, helping millions of people live in warmer homes that are cheaper to heat, meaning they are less vulnerable to rising energy costs.

The Bill formally recognises the role local communities play in the clean energy transition. It ensures communities hosting new onshore wind and ground-mounted solar projects benefit directly through the provision of community benefit funds that can be used flexibly according to local needs. It also raises the ambition of our plans to give local people opportunities to take a shared ownership stake in projects near them, by expanding the projects that could be in scope and enabling communities to buy a larger share.

Together, these measures help more communities participate in and benefit from the clean energy transition - putting wealth, power and ownership back in the hands of working people.

Deliver homegrown clean energy we control

The only way to protect people from future fossil fuel price shocks is to generate more of our own clean power here in Britain.

The Bill removes barriers to building the clean power infrastructure we need, from new energy generation to vital grid upgrades, helping build a more secure, resilient and efficient energy system.

By accelerating the transition to homegrown energy, the Bill will help break Britain’s dependence on global fossil fuel markets and provide greater long-term stability for consumers.

How does the Bill deliver these objectives?

The estimated net social benefit from this primary legislation is £3.2 billion. Secondary legislation needed to fully implement the Bill’s measures is expected to unlock a further £19.3 billion of net social benefits, taking the total estimated net present social value to £22.6 billion.

For further information on individual measures, see Energy Independence Bill: factsheets.

Deliver a fairer deal for consumers

The Bill will:

• cut energy bills for families by placing the exchequer funding of 75% of the domestic costs of the Renewables Obligation on an enduring legal basis, removing around £90 a year of costs on average from household bills as part of the £150 reduction announced at the 2025 Autumn Budget
• strengthen Ofgem’s duties, remit and enforcement powers so it can act faster against wrongdoing and secure stronger redress when households and businesses are let down, transforming the regulator into a consumer champion
• bring energy brokers and price comparison services under Ofgem regulation, with powers to set consistent standards, order compensation, impose fines and ban rogue operators. This could save businesses more than £100 million a year in costly mis-selling and hidden commissions
• expand government’s ability to design and deliver targeted support with energy costs for low-income and vulnerable households when required
• enable the removal of charges on electricity exported to the grid and enable cheaper electricity at times of excess generation, giving households greater control over their energy costs

Upgrade homes and empower communities

The Bill will:

• pave the way for the Warm Homes Agency to help deliver the Warm Homes Plan, the biggest programme of home upgrades in British history
• strengthen powers to support local authorities to enforce the Minimum Energy Efficiency Standards in the domestic and non-domestic private rented sector
• require operators of new clean energy infrastructure to contribute to community benefit funds, ensuring local communities directly benefit from hosting new onshore wind and and ground-mounted solar projects
• raise the ambition of plans to mandate community shared ownership in local renewable energy projects, allowing people to more directly feel the benefits of projects in their area and generating revenues which can be spent on local priorities, like supporting schools, services and social clubs. Communities will be able to buy a larger ownership stake in a greater number of projects
• require large electricity suppliers to engage with and offer commercial services to Community Energy Groups, ensuring these groups can access the services they need to be able to sell their energy and supporting the growth of the community energy sector

Deliver homegrown clean energy we control

The Bill will:

• reform market, planning and regulatory frameworks to accelerate the deployment of clean power including offshore wind, hydrogen and smart grid technologies
• modernise outdated consent and land-access processes to speed up the delivery of critical grid infrastructure and connect clean power, homes and businesses more quickly, while maintaining protections for landowners, communities and the environment
• introduce powers to support a more strategic approach to planning, building and operating energy infrastructure across Britain
• end new oil and gas licensing to explore new fields and support the management of existing fields for their lifetime by introducing Transitional Energy Certificates, providing certainty as the North Sea transitions
• implement manifesto commitments to end new coal licensing and ban fracking
• strengthen the role of the North Sea Transition Authority to support a fair, managed and prosperous transition for workers, communities and supply chains – at the same time extending employment protections for offshore workers in renewable energy
• increase system resilience by strengthening powers relating to the midstream gas sector and the Liquid Petroleum Gas supply chain, reducing the risk of supply disruptions to consumers and the wider economy