The Energy Independence Bill

The Energy Independence Bill provides a “major overhaul of Britain’s energy system” according to DESNZ.

Within it, new laws will pave the way to scrap gas standing charges and allow communities to take a stake in clean energy projects, alongside reforms to speed up grid connections. The Bill will also put the decision to shift 75 per cent of domestic Renewables Obligation costs from energy bills to public spending (that is tax) on a lasting legal footing.

It also controversially enhances a commitment to issue no new oil and gas licences to explore new fields in the North Sea, although new Transitional Energy Certificates will enable further production in already explored areas, including through existing infrastructure. This could unlock around 60 million barrels of oil. (Hands up if you see an inconsistency here.)

Under the legislation introduced to Parliament the Bill is a pathfinder for greater changes in the future, but even so, it is quite significant in itself.

The Bill will address charges on electricity stored and returned to the grid that might discourage the use of surplus renewable power. The Bill will enable these charges to be removed, helping households and businesses benefit from batteries, electric vehicle-to-grid charging and cheaper electricity when there is an abundance of clean electricity generation.

Other parts of the Bill will give local authorities stronger powers force landlords to meet energy efficiency standards, including fines of up to £30,000, establishing the Warm Homes Agency in law, requiring developers of project of over 5MW to offer communities up to a 20 per cent stake in new renewable projects, alongside mandatory community benefits and creating Great British Grid (yes, another Great British XXX) through an upcoming amendment, alongside reforms to speed up electricity infrastructure and help homes and businesses connect faster.

The Bill will also strengthen Ofgem’s duties, remit and enforcement powers and the Bill will bring energy brokers and price comparison services under Ofgem regulation.



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