UK Introduces Energy Independence Bill to End New North Sea Oil and Gas Licences

The United Kingdom has introduced the UK Energy Independence Bill to Parliament, landmark legislation that would end new licences to explore for oil and gas in the North Sea while promising cheaper household bills and greater public control over the energy system.

The Bill, introduced on Wednesday, 4 November, delivers on the government’s manifesto commitment to issue no new oil and gas licences for new fields, while supporting continued production from areas that are already licensed.

FAKTA: UK Energy Independence Bill at a glance

• What it is: the Energy Independence Bill, introduced to Parliament on 4 November 2026.
• North Sea: no new licences to explore new oil and gas fields; production continues in existing licensed areas.
• Transitional Energy Certificates: new certificates allowing further production in already explored areas through existing infrastructure — potentially around 60 million barrels of oil and hundreds of jobs.
• Household bills: plans to scrap gas standing charges, with around 60% of gas account holders expected to save an average of £45 a year.
• Next step: the Bill must pass through Parliament, including first reading, amendments and royal assent, before becoming law.

What the UK Energy Independence Bill Means for the North Sea

Under the Bill, the North Sea Transition Authority would lose the power to grant new licences for exploring new oil and gas fields. The government describes its approach as pragmatic: ending new exploration while backing production from fields that already hold licences.

New Transitional Energy Certificates would allow companies to produce more from areas that form part of, or sit next to, an existing field and are linked by existing infrastructure. The government says this could unlock around 60 million barrels of oil and support hundreds of jobs.

Oil and gas will remain part of Britain’s energy mix for decades to come, the government said, backed by a £2 billion Energy Wealth Fund and a North Sea Jobs Service to support workers and investment in future industries. The Bill would also end new licences for onshore oil and gas fields in England, including licences that could be used for shale-gas fracking.

Cheaper Bills and Stronger Consumer Protections

The Bill builds on last week’s Budget. The government will bring forward amendments to scrap standing charges on household gas bills, ending the daily charge paid even when no gas is used. Around 23 million households would gain greater control over their energy costs.

It would also put on a lasting legal footing the decision to shift 75% of domestic Renewables Obligation costs from energy bills to public spending, protecting savings already delivered to households. The shift has already removed around £90 a year from average household bills, according to the government.

The energy regulator Ofgem would receive tougher powers to crack down on rogue energy companies and bosses, including over unfair bonuses, while energy brokers and price comparison services would come under regulation to tackle mis-selling and hidden commissions — a change expected to save businesses around £100 million a year.

Homes, Communities and the Grid

The Bill would establish the Warm Homes Agency in law to help families access support for insulation and clean heating, and give local authorities stronger powers against landlords who fail energy efficiency standards, with fines of up to £30,000. Upgraded rented homes are expected to save households around £210 a year by 2030.

Developers would be required to offer communities up to a 20% stake in new renewable energy projects, alongside mandatory community benefits, so local people share in the rewards. A publicly owned Great British Grid company would be established in law through an upcoming amendment, alongside reforms to speed up electricity connections.

Employment protections would also be extended to offshore renewable and low-carbon workers beyond UK territorial waters, closing gaps in minimum wage, unfair dismissal and working-time rights.

Reaction to the Bill

Prime Minister Andy Burnham said the changes would “bring bills down for good, give families greater security and put Britain back in control of its energy future.” Energy Secretary Miatta Fahnbulleh described the Bill as a “first downpayment on fixing a broken system, protecting consumers from unfair costs and putting the public back in control.”

North Sea Transition Authority chief Stuart Payne welcomed the legislation, saying the regulator “stands ready to get to work” on the changes. Oceana UK executive director Hugo Tagholm called the Bill “a victory for our ocean.” The Conservatives, by contrast, have criticised the legislation as dangerous, arguing it risks Britain’s economic and energy position.

Reports of the Bill’s introduction also noted that it does not itself decide the future of the contested Rosebank field off Shetland. The Bill will now go through first reading before amendments and, if passed, royal assent.

For more coverage from the region, see Watan News International’s Europe news section.