Open Letter to the Secretary of State

November 2026

The Rt Hon Miatta Fahnbulleh MP

Secretary of State for Energy Security and Net Zero

Department for Energy Security and Net Zero

55 Whitehall

London

SW1A 2HP

 

Dear Ms Fahnbulleh

Enabling community energy schemes to sell locally

 

We welcome the Government’s intention to enable communities to sell clean energy locally, as stated in Parliament by Michael Shanks on 15th July last year and by Katie White on 2nd June this year.1

Reducing the UK’s dependence on unstable fossil fuel imports and embracing home-produced clean power is a vital step in tackling the cost of living and delivering energy security. Community energy, where local people organise to set up and run renewable energy generation schemes, has remarkable potential to contribute to this.

Community energy currently generates less than 0.5% of the UK’s electricity. Growth is being blocked by outdated energy market rules, with smaller schemes prevented from supplying power directly to local customers by insurmountable costs and burdens.

Enabling local selling would unlock community energy’s potential. Schemes would receive a fair price for the energy they generate, which, according to an Environmental Audit Committee inquiry, could see the sector grow twentyfold within ten years.2

In June, the Energy Security and Net Zero Committee recommended that ‘the Government produces, within six months, a regulatory framework to allow community energy generators to sell electricity to local consumers’. Over 100 Local Authorities, 110 national organisations, 1,100 community organisations nationwide also back this reform.3

Since 2023, when the Local Electricity Bill was introduced by a cross party group of MPs, the former and current Governments have been promising to address the market rules which hold community energy back. Whilst we welcome the financial support provided to the sector, we urge you to end the delay and enable local supply for community energy schemes, so that communities can benefit from the remarkable growth potential of locally produced clean power.

 

Yours sincerely

Lord Alton of Liverpool, Crossbench Peer

Baroness Bennett of Manor Castle, Green Peer

Lee Barron, Labour MP

Siân Berry, Green MP

Baroness Boycott, Crossbench Peer

Kirsty Blackman, Scottish National Party MP

Wendy Chamberlain, Liberal Democrat MP

Danny Chambers, Liberal Democrat MP

Sarah Champion, Labour MP

Ellie Chowns, Green MP

Victoria Collins, Liberal Democrat MP

Carla Denyer, Green MP

Neil Duncan-Jordan, Labour MP

Richard Foord, Liberal Democrat MP

Pippa Heylings, Liberal Democrat MP

Chris Hinchliff, Labour MP

Wera Hobhouse, Liberal Democrat MP

Kim Johnson, Labour MP

Ben Lake, Plaid Cymru MP

Graham Leadbitter, Scottish National Party MP

Rachael Maskell, Labour MP

Brian Mathew, Liberal Democrat MP

Edward Morello, Liberal Democrat MP

Dr Simon Opher, Labour MP

Brendan O’Hara, Scottish National Party MP

Al Pinkerton, Liberal Democrat MP

Adrian Ramsay, Green MP

Joshua Reynolds, Liberal Democrat MP

Bell Ribeiro-Addy, Labour MP

Roz Savage, Liberal Democrat MP

Liz Saville-Roberts, Plaid Cymru MP

Jim Shannon, Democratic Unionist Party MP

Hannah Spencer, Green MP

Zarah Sultana, Your Party MP

Sir Desmond Swayne, Conservative MP

Lord Teverson, Liberal Democrat Peer

Nadia Whittome, Labour MP

Sir Jeremy Wright, Conservative MP

Martin Wrigley, Liberal Democrat MP

Claire Young, Liberal Democrat MP

 

 

Footnotes:

1 “We are absolutely determined to do it. He is right to make the point about delivering clean power that benefits local communities, so that they can buy it locally and really see the benefit of hosting it. That is exactly what we are determined to do and we will continue to work to make it happen.” – Michael Shanks MP, as Parliamentary Under Secretary of State for Energy Security and Net Zero, Energy Security and Net Zero Oral Answers to Questions, House of Commons, 15th July 2025

“We are pursuing [direct local selling] through the Local Power Plan, and we intend for that to happen.” – Katie White MP, as Parliamentary Under Secretary of State for Energy Security and Net Zero, Energy Security and Net Zero Oral Answers to Questions, House of Commons, 2nd June 2026

2 Environmental Audit Committee, ‘Technological Innovations and Climate Change: Community Energy’, 2021

3 A full list of supportive Local Authorities and organisations is here: powerforpeople.org.uk/the-local-electricity-bill/support