Building on last week’s Budget, today, the government announced it will bring forward amendments to the Energy Independence Bill to support plans to scrap standing charges on household gas bills, ending the daily charge paid even when no gas is used.
The move will give around 23 million households greater control over their energy costs, with around 60% of gas account holders expected to save an average of £45 a year.
The Bill will also put the decision to shift 75% of domestic Renewables Obligation costs from energy bills to public spending on a lasting legal footing, protecting savings already delivered to households.
It follows last week’s Budget, which announced a £100 payment for up to 20 million households in England this winter, and further reforms to prevent unnecessary policy costs being added to energy bills.
Prime Minister Andy Burnham said, “For too long, families have paid the price for an energy system that isn’t working for them. Bills are too high and events around the world can send costs soaring.
“That’s why we’ve taken immediate action to help people with energy bills, with £50 off the annual price cap and our new £100 energy payment for 20 million households. And this Bill will make the changes needed for the long-term: protecting people when energy companies let them down, giving communities a stake in the power produced on their doorstep, and building more cheap, green power here at home
“Together, these changes will bring bills down for good, give families greater security and put Britain back in control of its energy future.”
Energy Secretary Miatta Fahnbulleh said, “Energy is an everyday essential. No one should have to worry about being ripped off by rogue companies or see bills driven up by price shocks thousands of miles away.
“Today is a first downpayment on fixing a broken system, protecting consumers from unfair costs and putting the public back in control.
“Through this Bill, we will build a clean energy future which people feel in their pockets, households and communities, ensuring support reaches those who need it most.”
Other measures in the Bill include:
- Stronger consumer protections: Giving Ofgem tougher powers to crack down on rogue energy companies and bosses, including unfair bonuses, while regulating energy brokers to tackle mis-selling and hidden commissions, expected to save businesses around £100 million a year.
- Warmer homes for renters: Giving local authorities stronger powers to tackle rogue landlords who fail to meet energy efficiency standards, including fines of up to £30,000, supporting plans to save households in upgraded rented homes around £210 a year by 2030.
- Making home upgrades easier: Establishing the Warm Homes Agency in law to help families access support to improve their homes and cut heating costs.
- Putting power in local hands: Requiring developers to offer communities up to a 20% stake in new renewable projects, alongside mandatory community benefits so local people share in the rewards.
- Building a stronger grid: Establishing publicly owned Great British Grid in law through an upcoming amendment, alongside reforms to speed up electricity infrastructure and help homes and businesses connect faster.
The Bill will also address the government’s pragmatic approach to the North Sea, by ending new licences to explore new oil and gas fields while supporting continued production from existing licensed areas.
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 and support hundreds of jobs.
The government says oil and gas will remain part of Britain’s energy mix for decades to come but it is committed to a fair transition, backed by the £2 billion Energy Wealth Fund and North Sea Jobs Service, supporting workers and investment in the industries of the future.
