New legislation introduced by the government would accelerate electricity infrastructure development, strengthen energy market regulation, and give communities greater opportunities to benefit financially from renewable power projects.
The Energy Independence Bill includes proposals affecting grid connections, commercial energy brokers, electricity market arrangements, community-owned generation, and the regulation of existing oil and gas infrastructure.
The Department for Energy Security and Net Zero intends the legislation to address operational barriers within Britain’s energy system, including lengthy infrastructure approval processes, gaps in consumer protection, and restrictions on participation in local electricity generation.
One of the main commercial measures would bring energy brokers, price comparison services, and other third-party intermediaries within Ofgem’s regulatory framework.
The government estimates that stronger oversight could save businesses more than £100m annually by tackling mis-selling, hidden commissions, and other practices that increase energy procurement costs.
Proposed powers would allow Ofgem to impose financial penalties, require compensation, and restrict operators found to have breached regulatory obligations.
Commercial energy brokers operate between suppliers and businesses purchasing electricity or gas. Greater regulatory oversight would establish more consistent standards for how these intermediaries present contracts, disclose charges, and deal with customers.
Electricity infrastructure reforms would address consent procedures, land-access arrangements, and other processes that can delay construction and reinforcement of the network.
These measures are relevant to commercial and industrial developments requiring new or upgraded grid connections. Network availability can affect when factories, data centres, housing developments, and renewable generation projects become operational.
The Bill would also provide targeted powers to change electricity market rules, network charging, and trading arrangements to improve coordination between generation and infrastructure investment.
Ministers intend to establish publicly owned Great British Grid in law through an amendment during the Bill’s parliamentary passage. The proposed body’s role forms part of wider reforms concerning electricity infrastructure development.
Communities hosting new renewable energy facilities would gain additional opportunities to share in the financial benefits of generation projects.
The legislation would enable mandatory community benefit agreements for new onshore wind and ground-mounted solar developments exceeding 5MW. These agreements would establish contributions to local communities and improve transparency over how benefits are delivered.
The government also intends to require renewable developers to offer communities ownership stakes of up to 20% in qualifying projects, giving local groups opportunities to participate in the commercial arrangements surrounding electricity generation.
Another measure would allow changes to charges imposed on electricity stored and subsequently exported to the grid. The reforms are intended to support battery storage and vehicle-to-grid technology, although their eventual financial effects will depend on the detailed charging arrangements.
Ofgem would receive stronger enforcement powers over energy companies, including measures designed to improve accountability and provide redress when regulatory obligations are breached.
Separately, the Bill proposes ending new exploration licences for oil and gas fields while allowing continued production from existing licensed areas.
A proposed framework for Transitional Energy Certificates would support further production from previously explored resources and established infrastructure. The government estimates that the arrangements could enable production of approximately 60 million additional barrels of oil.
The reforms also include stronger local authority powers concerning energy efficiency requirements in rented properties, extending enforcement provisions to address non-compliance.
The Bill has completed its introduction to Parliament but has not become law. Several significant measures, including the statutory establishment of Great British Grid, require amendments or further implementation arrangements.
The legislation therefore sets out a proposed framework for changes across energy procurement, infrastructure investment, regulation, and generation, with the final obligations dependent on its progress through Parliament.
