What is the Energy Independence Bill? 

Written By Isabella Gornall

By Jade Pallister, Director of Energy and Infrastructure

The Energy Independence Bill is a highly anticipated bill of the King’s Speech – currently planned for 13th May 2026. The Bill was the brainchild of Alan Whitehead who (now a Lord) is Minister of State in the Department of Energy Security and Net Zero (DESNZ). Seahorse understands that this Bill will be: 

  • Similar size, if not bigger, than the Energy Act 2023. 

  • Include a narrative focus on “cutting bills and protecting consumers”. 

  • Cover energy policy developed over the last 18 months. 

  • A ministerial priority, although it is t competing with other bills for parliamentary time.  

In DESNZ, there is a collective view that the Middle East conflict cements the Clean Power Mission and the need to deliver measures to cut costs and protect consumers through this Bill.  

Energy Independence Act: Manifesto Commitments 

The Labour 2024 General Election manifesto notes that an Energy Independence Act “will establish the framework for Labour’s energy and climate policies”. Ed Miliband remains at the helm of the Department, meaning the commitments in the manifesto give a good indication of the avenues of the Bill. The manifesto committed that: 

  • Labour will maintain a strategic reserve of gas power stations to guarantee security of supply.  

  • Labour will not grant new coal licences and will ban fracking for good. 

  • Labour will strengthen the regulator to ensure it can hold companies to account for wrongdoing, require higher standards of performance, and ensure there is automatic customer compensation for failure. 

  • Labour supports the introduction of a carbon border adjustment mechanism 

  • Labour will not issue new licences to explore new oil and gas fields. 

  • Labour will reform standing charges. 

  • Labour will invest in carbon capture and storage, hydrogen and marine energy. 

Key DESNZ policy linked to Energy Independence 

In addition to the manifesto commitments, Seahorse has been closely engaging with DESNZ, Ofgem, and NESO over the last 18 months across the following areas: 

  • Reformed National Pricing  

  • Strategic Spatial Energy Plan 

  • Energy Digitalisation and Smart Data changes 

  • Oil and Gas Licence changes 

  • Creation of Warm Homes Agency 

  • New subsidy schemes for technologies 

  • Planning and consenting frameworks 

  • Replacement of ECO  

What environmental and energy policies require primary legislative change? 

In UK practice, energy-sector change often splits across primary legislation (Acts of Parliament) and a large “stack” of secondary delivery mechanisms including statutory instruments, regulator-led licence modifications, and industry code modifications. 

Primary legislation is usually needed to: 

  • Amend existing high-level Acts of Parliament (such as the Electricity Act 1989 or Marine and Coastal Access Act 2009) 

  • Impose new taxes or levies 

  • Establish entirely new licensing regimes 

  • Impose legally binding prohibitions 

  • Change the core duties/powers of independent regulators 

  • Establish institutional arrangements, enforcement roles, or cost-recovery mechanisms 

As such, many areas listed here will require primary legislation; like a package of regulator/consumer-protection strengthening measures, a statutory “delivery engine” for REMA, a durable statutory ban on fracking (and possibly new coal licensing), while others could be delivered through market mechanisms and regulatory instruments.  

A “no new oil and gas licences” policy does not necessarily require primary legislation if it remains a policy choice, however it has a stronger weight and resilience to future changes of Government position, if embedded in law.  

How and why to engage in the Energy Independence Bill process 

The Bill is at an early stage of development. Engaging with its passage through Parliament is a key opportunity to shape policy outcomes, embed climate and nature protections in law, and accelerate market reform. Success depends on early engagement, a clear understanding of how the Bill can deliver desired outcomes, and the ability to act quickly once it is introduced. 

Seahorse has supported several bills in the past and is already engaging with relevant DESNZ teams, MPs and Peers. If you would like to seek advice on the Bill and engagement please email jpallister@seahorseenvironemntal.co.uk  

Isabella Gornall
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