Energy Independence Bill to cut energy bills and boost consumer protections

5 November 2026

The government has introduced the Energy Independence Bill, legislation aimed at cutting household energy bills, strengthening consumer protections and expanding community ownership of renewable energy projects across the UK.

Introduced to Parliament on Wednesday 4 November, the Energy Independence Bill builds on measures announced in last week’s Budget and includes reforms to energy costs, consumer rights and the UK’s energy infrastructure.

One of the key proposals is the removal of daily standing charges on household gas bills, which consumers pay regardless of how much gas they use. The government estimates that around 23 million households could benefit, with approximately 60% of gas account holders saving an average of £45 a year.

The Bill would also make permanent the transfer of 75% of domestic Renewables Obligation costs from energy bills to public spending. The government says this measure has already reduced average household energy bills by around £90 a year.

Prime Minister Andy Burnham said the legislation would protect energy consumers and give communities a greater role in energy production.

The proposed reforms would strengthen Ofgem’s powers to act against energy companies and regulate energy brokers, including measures to tackle mis-selling and hidden commissions. The government estimates these changes could save businesses more than £100 million a year.

Local authorities would gain greater powers to enforce energy efficiency standards in privately rented homes, with fines of up to £30,000 for breaches. The government expects energy efficiency improvements to deliver average annual savings of £210 by 2030.

Under the renewable energy proposals, developers of new projects would be required to offer local communities a stake of up to 20%, alongside mandatory community benefits.

The legislation would also establish the publicly owned Great British Grid in law and introduce reforms designed to accelerate electricity infrastructure development and grid connections.

As part of changes to UK energy policy, the Bill would end the issuing of new licences for oil and gas exploration in the North Sea while allowing production to continue in existing licensed areas. New Transitional Energy Certificates could support further production in already explored areas, potentially unlocking around 60 million barrels of oil.

The government says the Energy Independence Bill will support the transition to cleaner energy while maintaining energy security, protecting jobs and helping households manage energy costs.