The British government introduced the Energy Independence Bill to Parliament on November 4, delivering its manifesto commitment to issue no new oil and gas licences to explore new fields in the North Sea. New Transitional Energy Certificates will instead enable further production in already explored areas, including through existing infrastructure, which the government says could unlock around 60 million barrels of oil and support hundreds of jobs. The bill also ends new onshore oil and gas licences in England, including licences that could be used for shale gas fracking.
The consumer measures are the political core. Amendments will scrap standing charges on household gas bills, the daily charge paid even when no gas is used, giving around 23 million households greater control, with about 60 percent of gas account holders expected to save an average of 45 pounds a year. The bill puts the shift of 75 percent of domestic Renewables Obligation costs from energy bills to public spending, worth about 90 pounds a year off an average bill, on a lasting legal footing to March 2029. It follows a Budget payment of 100 pounds for up to 20 million households in England this winter and 50 pounds off the annual price cap.
Regulation tightens alongside. Ofgem gains tougher powers against rogue energy companies and executives, energy brokers and price comparison services come under Ofgem regulation against mis-selling and hidden commissions, a change the government estimates could save businesses more than 100 million pounds a year, and local authorities gain stronger enforcement powers on rented home efficiency, with fines up to 30,000 pounds and an expected saving of about 210 pounds a year by 2030 in upgraded homes.
For energy development, developers must offer communities up to a 20 percent stake in new renewable projects with mandatory community benefits, publicly owned Great British Grid will be established in law, and grid connection processes will be reformed to speed connections. Prime Minister Andy Burnham framed the package as bringing bills down for good; Energy Secretary Miatta Fahnbulleh called it a first down payment on fixing the system. Oil and gas remain part of the mix for decades on the government’s own account, backed by a 2 billion pound Energy Wealth Fund for the transition workforce.