King's Speech 2026: Energy Independence Bill

Wednesday, 13 May 2026 12:28

“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...Request free trial

“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 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 and social tenants, lifting 400,000 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.

EnsuretheNorthSeaTransitionAuthorityisequippedto 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 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.”