On 4 November the government introduced the Energy Independence Bill to Parliament.
The government has described the Energy Independence Bill as ‘a down payment on longer-term reforms that will fix Britain’s broken energy system’. Its main purpose is to bring down bills for all energy customers by accelerating the transition to cheaper renewables and making consumer protections stronger. It’s a huge piece of legislation, so we’ve pulled out the key points relevant to businesses.
Making flexibility fairer
The government recognises that flexible electricity consumption is key to managing demand and keeping system costs down. That’s why the Demand Flexibility Service rewards businesses for using electricity at quieter times. But suppliers currently face charges on the electricity they re-export to the grid – which of course they pass on to customers. The Energy Independence Bill recognises that these charges are unfair and provides the Secretary of State with the power to remove them. That’s good news for businesses who export energy from their battery storage or carry out vehicle-to-grid charging with their EV fleets.
Stronger enforcement of buildings rules
The Minimum Energy Efficiency Standards (MEES) require buildings in England and Wales to have a certain level of energy efficiency before they can be rented out. For commercial buildings, the minimum standard is currently E or above. In June 2026 the government announced that large commercial buildings will have to reach EPC B by 2031. The standards should help businesses in rented premises to reduce energy costs – but enforcement has been the missing piece of the puzzle up to now. The Energy Independence Bill includes measures giving local authorities stronger powers to enforce the rules on commercial landlords.
Energy broker regulation
The Energy Independence Bill appoints Ofgem as the regulator for third-party intermediaries (TPIs), such as energy brokers and price comparison websites. The government recognises that the complexity of the energy retail market creates a “knowledge gap” between TPIs and consumers. This means that TPIs play a very important role – but without proper regulation, unscrupulous TPIs can use this to profiteer. The government hopes that regulation will “transform the energy broker market for smaller businesses”. As a responsible TPI, Sustainable Energy First welcomes this move to regulate our industry.
Capped connection charges in heat network zones
For non-residential buildings with the potential to connect to a heat network, the Bill attempts to strike a balance between covering the connection costs and protecting the business from excessive charges. It does this by capping the charge for businesses to connect. The exact sum isn’t set, but it must be “no higher than the building’s alternative heating technology”.
Extension of smart meter rollout
The Energy Independence Bill extends the government’s powers to steer the smart meter rollout from 1 November 2028 to 1 November 2033. This is necessary so the government can keep setting policy to support the rollout. Smart metering helps energy consumers access more accurate billing and a wider range of tariffs, as well as making it possible to participate in demand flexibility.
Installers must register green assets
Companies installing “distributed energy assets” like rooftop solar or EV chargepoints will be legally obliged to register these assets with the Distribution Network Operator (DNO). Currently registration rates are low, which makes it harder for DNOs to plan how the network is used. Giving DNOs better data to work with could save the taxpayer hundreds of millions of pounds in avoided network investment costs.
The Energy Independence Bill is currently awaiting its second reading in the House of Commons. We don’t expect it to gain Royal Assent before the end of 2026. As ever, the Energy Advice Hub will keep you updated on developments relevant to business energy.
