The Energy Bill will seek to improve energy efficiency and to encourage low-carbon energy production. It also sets out how Britain's energy supplies will be made more secure. It is unlikely to be introduced until after the summer recess.

Chiefly, the Bill will create a "Green Deal" for domestic and business energy users, allowing them to take out loans to improve energy efficiency in their home and pay these off from the savings that result. Creation of a “smart grid” and the rolling-out of smart meters across the country will also be part of this focus on greater efficiency.

The Bill will also seek to reform energy markets, with the aim of delivering security of supply and fair competition. This is likely to involve some change to Ofgem's remit. Energy companies will be required to provide more information on energy bills for consumers, to ensure fair access to energy supplies.

Carbon emissions from coal-fired power stations will be regulated by the Bill, most likely through the emissions performance standard that both coalition parties have previously argued for.

Exploration of North Sea oil and gas fields, particularly those which are smaller and more difficult to reach, will be aided by the Bill. Vital infrastructure in the region will be made available to all companies.

Finally, a Green Investment Bank will be created to support investment in low carbon projects, although details have not yet been finalised on the funding and nature of this facility.