The Government has introduced sweeping energy legislation covering household gas standing charges, Ofgem enforcement, private landlords, renewable developments and North Sea exploration. The Energy Independence Bill was introduced to Parliament on 4 November 2026. Several prominent proposals will require amendments, regulations or implementation decisions before taking effect.
Gas standing charges to be abolished under Government plans
The Government proposes to remove the fixed daily gas standing charge, currently approximately £108 a year for a typical household, and transfer the underlying costs to the price paid per unit of gas. Treasury estimates suggest about 60% of gas account holders could save an average £45 annually, while some higher-usage households could pay more. Around 23 million households could be affected. Ministers have asked Ofgem to deliver the change in 2027 or as soon as possible afterwards. Targeted mitigation for some households remains to be detailed.
Renewables Obligation costs to be funded through public spending
The Bill would put the transfer of 75% of domestic Renewables Obligation costs from energy bills to the Exchequer on a lasting legal footing until March 2029. The Government estimates this has already removed approximately £90 a year from average household bills. The expenditure is shifted to public finances rather than eliminated. Powers would help ensure savings reach customers, including those on fixed tariffs.
Ofgem to gain stronger enforcement powers
The Bill would strengthen Ofgem’s consumer protection powers and bring energy brokers and price-comparison services under regulation. The Government proposes powers to impose fines, order compensation and ban rogue operators, tackling mis-selling and hidden commissions. Ministers estimate potential business savings exceeding £100 million annually, but these are projections, not realised savings.
Landlords could face penalties of up to £30,000
Local authorities would receive stronger powers to enforce energy-efficiency requirements in private rented properties, with maximum civil penalties of £30,000 for breaches of domestic regulations. The Government is pursuing an EPC C standard from 1 October 2030 subject to applicable rules and exemptions. It projects average annual energy savings of £210 for households in upgraded homes by 2030. The maximum fine is not an automatic penalty for every property currently below EPC C.
Renewable projects to provide community benefits
The Bill would enable mandatory benefit agreements for qualifying new onshore wind and ground-mounted solar projects, including schemes over 5 megawatts. Communities would help decide how funds are used. The Government also proposes broader opportunities for local people to purchase ownership stakes of up to 20% in qualifying projects. An opportunity to buy shares is not a free allocation of ownership; further rules are needed.
Great British Grid and electricity infrastructure
Ministers plan a forthcoming amendment to establish publicly owned Great British Grid in law. The legislation would also modernise grid connection, land access, consenting and electricity market arrangements. The stated aim is to accelerate connections for homes, businesses and clean energy developments while maintaining appropriate safeguards.
North Sea exploration licences to end
The Bill would stop new licences to explore previously undeveloped oil and gas fields, while allowing production under existing licences to continue. Transitional Energy Certificates would permit certain additional production in already explored areas. The Government estimates the certificates could unlock around 60 million barrels of oil and support hundreds of jobs. These are estimates and do not mean existing North Sea production will close immediately.
Fracking and smart-meter powers
The Bill would end new onshore oil and gas licences in England, including those potentially used for shale-gas fracking. It would extend smart-meter oversight powers to 2033, enable rules for smart batteries and expand powers to provide targeted energy-bill support. Further provisions address charges on electricity exported to the grid and the resilience of gas supply infrastructure.
What happens next?
The Energy Independence Bill must pass through Parliament before becoming law. The gas standing-charge changes, Great British Grid and several community-benefit measures depend on further legislative or regulatory steps. Ofgem will have a central implementation role. The actual distribution of household savings, public expenditure and impacts on energy businesses will depend on final rules and market conditions.