Extending the core fuels regulatory regime to the gas sector
Published 4 November 2026
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Factsheet relating to the Energy Independence Bill.
Summary
As the government delivers clean homegrown energy we control, gas will continue to play an important role in our energy system. This measure gives the government the powers it needs to identify risks in the midstream gas sector and, where necessary, require industry to take action to maintain and improve resilience.
Why are we legislating?
Equivalent powers already apply in the fuel sector. These measures amend a comparable framework by extending it to the midstream gas sector, ensuring a consistent approach to identifying and addressing resilience risks.
What are the government’s objectives with this measure?
This measure is a vital step in this government’s objective to strengthen energy security. By supporting a secure and resilient gas system, it helps underpin economic growth and protect households and businesses from the higher costs that can result from supply disruptions.
The measure is designed to strengthen the resilience of the midstream gas sector and the LPG supply chain. The midstream gas sector is responsible for processing and injecting gas into the national gas network, where it is then distributed for use in homes and industry. LPG is a general term for liquefied propane and butane which are used as fuels for a range of uses including home heating (serving approximately 180,000 homes in the UK), industrial and commercial purposes, and to a lesser extent transport.
How will this measure deliver these objectives?
The measure will provide 3 key powers to the Secretary of State.
Direction making power
The Secretary of State will be able to direct gas and LPG facilities to respond to disruption and address risks to continuity of supply. Similar requirements may also be set through regulations for groups of operators where appropriate. Any intervention would need to be fair, reasonable and justifiable.
Information powers
These powers will enable the Secretary of State to request routine and ad hoc information and impose a duty to report incidents. The information required from industry will be limited to what is necessary and government will aim to work with industry to minimise any administrative burden incurred.
Financial assistance power
The financial assistance power allows the government to provide financial support to improve the resilience of the midstream gas sector and protect continuity of gas and LPG supply. It would only be used in rare and exceptional circumstances where intervention would have significant financial implications for industry. Any support would be provided at the Secretary of State discretion in line with subsidy control rules and other relevant requirements.