Energy Independence Bill explained: what it means for energy bills in the UK

The UK’s new Energy Independence Bill aims to change how energy is produced and priced. For households, it could mean more stable prices over time, cheaper electricity at certain times, and more support for energy-efficient homes.

Here’s everything we know about the Energy Independence Bill so far and what it could mean for your home.

What is the Energy Independence Bill?

The Energy Independence Bill is a proposed law that aims to reshape how the UK produces, supplies and manages energy.

In simple terms, it will help the government build clean energy projects faster and mean more of the country’s energy can be produced here on home soil.

The bill sets a framework for moving the UK’s energy system away from fossil fuels towards renewable and nuclear power. It will also help support longer-term energy security.

Energy Independence Bill explained

Watch our short video for more about the Energy Independence Bill and what it means for your bills.

Why is the UK introducing a new energy bill?

The Energy Independence Bill has been introduced to reduce the UK’s reliance on imported fossil fuels like gas and oil.

It will reform how the energy market operates and help to produce more energy here at home.

Recent global events have shown how quickly problems elsewhere in the world can push up wholesale energy prices. This results in higher household bills for everyone here in the UK.

The bill is designed to create an energy system that’s more secure, resilient and affordable.

How could the Energy Independence Bill affect energy bills?

The energy bill will include a range of changes to how energy is generated, regulated and priced.

We don’t know all the details yet. However, here are some of the plans the government have announced so far:

Energy system and supply

The bill aims to expand the role of renewable and nuclear in the UK’s energy mix. It will also speed up the delivery of major clean energy technologies and make important upgrades to National Grid to support this.

Regulation and oversight

There may be changes to how the energy sector is regulated. This may include tighter regulations on third-party intermediaries, such as energy brokers.

Market and pricing reforms

One idea under discussion is pricing that better reflects the availability of renewable energy. This would mean cheaper electricity for customers on windy and sunny days.

Consumer-focused measures

The bill is also expected to strengthen how people are protected from changes in energy costs. This could include targeted support for households most affected by energy price increases, particularly lower-income families.

Could electricity be cheaper at certain times?

Some of the proposals so far include lower electricity prices during periods when more renewable energy is available – like very windy or sunny days.

It’s a similar model to what we already do here at British Gas with PeakSave, where customers get half-price electricity when demand for energy is lower.

More broadly, the bill aims to reduce the UK’s exposure to global energy prices by increasing domestic production. But it’s not clear yet when this would be or how long it would take to have an impact on household bills.

What does it mean for homeowners and renters?

On top of lower energy costs, there are some other potential benefits of this new bill for households.

For homeowners, there is talk of more grants and low-interest loans to help make homes more energy efficient.

The bill could also remove fees for exporting energy back to the grid – making things like solar panels a more affordable option.

For renters, landlords will be required to invest in energy-efficient home improvements to help tenants save on their energy bills.

Will solar panels and home energy generation be affected?

The bill could increase support for renewable energy across the UK, helping to speed up the rollout of clean tech like wind and solar power.

There may also be changes to how small-scale generators, such as households with solar panels, are paid for exporting electricity back to the grid.

What role will Ofgem play?

Ofgem regulates the UK energy market. Under the Energy Independence Bill their responsibilities might be expanded. This could include overseeing more parts of the energy market – like the regulation of energy brokers as we mentioned earlier.

It’s all part of broader efforts to strengthen consumer protection and market transparency. But the exact scope of their role will depend on lots of different factors.

When could the changes happen?

The Energy Independence Bill was announced during the King’s Speech on 13th May. It will now need to pass through parliament before any changes happen. Then, once it’s been approved, measures are likely to be introduced slowly over time.

As more details about the Energy Independence Bill are confirmed, we’ll continue to share clear, up-to-date information so you can understand what it means for you bills and your home.

In the meantime, if you’d like help understanding your energy bill, take a look at our guide. And for simple, practical ways to reduce your energy use at home, explore our energy saving tips.

What you can do now

Check your current tariff

It’s always a good idea to check your current energy tariff from time to time. Just to make sure it’s still the best option for you. If you’re on a variable tariff, switching to a fixed tariff could save you money. And even if you’re on a fixed tariff already, there may be another tariff that’s the better choice for you. With British Gas, you can switch between different fixed tariffs for free.

Consider fixing vs staying variable

Fixed tariffs give you more certainty over your energy costs, which you may prefer while changes to the energy market are still up in the air. Variable tariffs are more flexible, but prices change based on wholesale energy costs. At the moment, it’s still unclear exactly how the bill will affect future energy prices. So it’s up to you whether you want price certainty right now, or to stay flexible.

Explore energy-efficiency upgrades

There are lots of ways you can save energy at home to help reduce your bills. Bigger changes, like installing solar panels or improving insulation, will make your home more energy-efficient in the long run. But there are also plenty of small, simple changes to your everyday energy habits that can add up to making a big difference.

Want to know more?

Discover lots more helpful articles to help you manage your home energy and services on The Source.