The Energy Independence Bill, introduced to Parliament on Wednesday (November 4), is expected to give around 23 million households greater control over their energy costs, with around 60 per cent of gas account holders expected to save an average of £45 a year.
The new law is designed to help families and businesses benefit from a "fairer energy system", cheaper bills and greater public control. It follows the Labour Party Budget delivered by Chancellor Healey last week, which included plans to scrap standing charges on household gas bills.
Long-term changes to energy costs
The Bill will also put the decision to shift 75 per cent of domestic Renewables Obligation costs from energy bills to public spending on a lasting legal footing, protecting savings already delivered to households.
Prime Minister Andy Burnham said: "For too long, families have paid the price for an energy system that isn’t working for them. Bills are too high and events around the world can send costs soaring."
He added: "That’s why we’ve taken immediate action to help people with energy bills, with £50 off the annual price cap and our new £100 energy payment for 20 million households."
Consumer protections and community benefits
Energy Secretary Miatta Fahnbulleh said: "Energy is an everyday essential. No one should have to worry about being ripped off by rogue companies or see bills driven up by price shocks thousands of miles away."
The government shared that other measures in the Bill include stronger consumer protections, giving Ofgem tougher powers to crack down on rogue energy companies and bosses, including unfair bonuses, while regulating energy brokers to tackle mis-selling and hidden commissions, expected to save businesses around £100 million a year.
Local authorities will receive stronger powers to tackle rogue landlords who fail to meet energy efficiency standards, including fines of up to £30,000, supporting plans to save households in upgraded rented homes around £210 a year by 2030.
Building infrastructure and local ownership
The Bill establishes the Warm Homes Agency in law to help families access support to improve their homes and cut heating costs. Developers will be required to offer communities up to a 20% stake in new renewable projects, alongside mandatory community benefits.
A publicly owned Great British Grid will be established in law through an upcoming amendment, alongside reforms to speed up electricity infrastructure and help homes and businesses connect faster.
