The UK Government has introduced the Energy Independence Bill with the aim of reforming the energy system with “affordability at its heart” alongside clean power plans.
Following the Budget, the UK Government said it will bring forward amendments to the Bill to support plans to scrap standing charges on household gas bills, ending the daily charge paid even when no gas is used.
The move will give around 23 million households greater control over their energy costs, it claimed, with around 60% of gas account holders expected to save an average of £45 a year.
The Bill will also put the decision to shift 75% of domestic Renewables Obligation costs from energy bills to public spending on a lasting legal footing, protecting savings already delivered to households.
Other measures in the Bill include:
- Giving Ofgem tougher powers to crack down on rogue energy companies and bosses
- Giving local authorities stronger powers to tackle rogue landlords who fail to meet energy efficiency standards
- Establishing the Warm Homes Agency in law
- Requiring developers to offer communities up to a 20% stake in new renewable projects
- Establishing publicly owned Great British Grid in law through an upcoming amendment
The Bill will also continued production of oil from existing licensed areas in the North Sea. New Transitional Energy Certificates will enable further production in already explored areas, including through existing infrastructure.
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.
“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. And this Bill will make the changes needed for the long-term: protecting people when energy companies let them down, giving communities a stake in the power produced on their doorstep, and building more cheap, green power here at home.
“Together, these changes will bring bills down for good, give families greater security and put Britain back in control of its energy future.”
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.
“Today is a first downpayment on fixing a broken system, protecting consumers from unfair costs and putting the public back in control.
“Through this Bill, we will build a clean energy future which people feel in their pockets, households and communities, ensuring support reaches those who need it most.”
