King's Speech 2026: Energy Independence Bill

Energy Independence Bill

“My Ministers will therefore introduce an Energy Independence Bill to scale-up
homegrown renewable energy and protect living standards for the long term”

● As we face the second fossil fuel shock in half a decade, the lesson for the
UK is clear: we need to get off the fossil fuel rollercoaster with clean,
homegrown power we control and the electrification of our wider economy.

● The Energy Independence Bill provides the Government the powers it needs
to fight people’s corner and go further and faster to deliver clean energy.

What does the Bill do?

● Over the past year and a half, the Government has secured a record-breaking
number of renewable projects to power the equivalent of 23 million homes;
ushered in a golden age of nuclear through a world-leading Small Modular
Reactors programme and commitment to the Sizewell C nuclear project;
attracted over £90 billion in private sector investment; and taken action to
bring down energy bills by seven per cent in April 2026.

● The Energy Independence Bill is the next step in the Government's plan to
deliver clean energy, delivering transformative measures to underpin action
on three core objectives: tackling the affordability crisis and protecting
consumers; accelerating the UK’s drive for energy security; and delivering a
fair, managed and prosperous transition to clean energy.

● The Bill will:

Tackle the affordability crisis and protect consumers

○ Cut energy bills for families by placing the Exchequer funding of 75
per cent of the domestic costs of the Renewables Obligation scheme
for three years on an enduring legal basis, removing around £90 a year
of costs on average from household bills as part of the £150 reduction
in costs announced in the autumn 2025 Budget.

○ Pave the way for the Warm Homes Agency - a dedicated public body
to help deliver the £15 billion Warm Homes Plan, the biggest

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 programme of home electrification in British history, which will cut bills
and tackle fuel poverty.

○ Implement new rules to ensure landlords invest in home upgrades
that will cut bills for renters, lifting 415,000 families out of fuel poverty
by 2030.

○ Ensure Ofgem can act as a strong consumer champion with new
powers to protect families and business, including regulating energy
brokers and third-party intermediaries to stop unfair practices.

○ Expand the Government’s toolkit to protect low‑income and
vulnerable households when needed by enabling the provision of
targeted support for energy bills.

Accelerate the UK’s drive for energy security

○ Reform market, planning and regulatory frameworks to accelerate the
deployment of clean power including offshore wind, hydrogen and
smart grid technologies.

○ Speed up the build-out of vital grid infrastructure with a package of
measures to reduce unnecessary delays, including reforms to land
access rules and networks consenting.

○ Introduce powers needed to take a more strategic approach to
planning and building energy infrastructure and operate the
electricity system more efficiently.

○ Enable the removal of charges on electricity that consumers export to
the grid and allow discounted energy at times of excess generation to
give families more control over their bills and help create a more
flexible energy system.

Deliver a fair, managed and prosperous transition and good jobs in
clean energy

○ Manage existing oil and gas fields for their lifetime through legislation
to introduce Transitional Energy Certificates, and show climate
leadership by meeting the manifesto commitment not to issue new
licences to explore new fields, including delivering the
commitment to ban fracking.

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 ○ Ensure the North Sea Transition Authority is equipped to support a
fair, managed and prosperous transition, including a new statutory
objective to consider workers, communities and supply chains in its
decisions.

○ Extend employment rights and protections for offshore workers in
renewables, bringing them in line with those working in oil and gas.

○ Implement the manifesto commitment to end new coal licenses.

Territorial extent and application

● The Bill will extend to the whole of the UK. The majority of measures will apply
to England, Scotland and Wales, with some measures also applying to
Northern Ireland.

Key facts

● Global instability shows the UK must move off volatile fossil fuel
markets. The conflict in the Middle East highlights the UK’s exposure to
international fossil fuel prices. With half of the UK’s recessions since 1970
caused by fossil fuel shocks, reducing the UK’s reliance on fossil fuels will
protect our economy in the future.

● Fair pricing reform will reduce household energy bills. The Bill will unlock
the clean homegrown energy we need to protect households against volatile
fossil fuel markets and deliver a cost-effective energy system and consumer
savings through our Reformed National Pricing plan. Initial government
estimates suggest that consumers could see a gradual accumulation of
savings from 2030 onwards from Reformed National Pricing, reaching £20-40
on the typical annual dual fuel household bill by 2040.

● Clean energy deployment will cut emissions significantly. The Bill will
reinforce UK climate leadership by cutting emissions by the equivalent of
taking 550,000 cars off the road based on the current fleet.

● Clean energy investment will boost economic growth and create
high-quality jobs nationwide. The Bill will enforce delivery of the wider
domestic and non-domestic private rented sector minimum energy efficiency
standards programme, which the Government estimates could deliver up to
50,000 jobs per year to 2030 and investment of £14 billion.
● The Chief Executive of the Confederation of British Industry, Rain
Newton-Smith, said “Clear, consistent climate laws have helped make the

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UK a global leader in clean energy investment and innovation. This transition
is not only essential for tackling climate change - it’s a strategic economic
opportunity. Businesses remain committed because they understand this
transition is the backbone of a competitive, resilient economy in an uncertain
world. The science hasn’t changed but the risks of inaction have. Now is the
moment to turn that ambition into tangible benefits for every household and
business - from lower energy bills, and cleaner air, to the creation of
high-quality jobs.”

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