Department for Energy Security & Net Zero

Great British Energy (GBE) is currently developing its schemes and projects for 2026/27 and beyond, which includes criteria for upcoming grants and loans.

GBE will set out further funding options in summer 2026.

Great British Energy (GBE) is currently developing its schemes and projects for 2026/27 and beyond, which includes criteria for upcoming grants and loans.

GBE will set out further funding options in summer 2026.

Great British Energy (GBE) is currently developing its schemes and projects for 2026/27 and beyond, which includes criteria for upcoming grants and loans.

GBE will set out further funding options in summer 2026.

In developing the Local Power Plan, DESNZ and Great British Energy (GBE) engaged with Local Government and the community energy sector. GBE will continue to use these existing forums and build their own relationships, such as through conferences, events, workshops.

GBE will produce a “community energy in a box” toolkit to support people – including those new to community energy – by providing guidance on awareness raising, project origination and project development support as well as standardised documents and templates.

Where the generator is found to be non‑compliant with the conditions of public support, enforcement action is available, including the withholding of subsidy and contract termination. The Low Carbon Dispatchable Contract for Difference (LCD CfD) contains various rights of termination for the contract Counterparty (LCCC) in the event the Generator (Drax) breaches key obligations. This includes the ability to terminate the CfD in the event of repeated and material breaches of the sustainability requirements. For the full text setting out the LCD CfD Termination rights, see Termination - Part 12 (p.186) here: Low Carbon Dispatchable Contracts for Difference Terms and Conditions - Low Carbon Contracts. Any such action would be taken on the basis of evidence and in line with the relevant statutory and contractual frameworks.

We have set out our expectation that all duty bearers, including Departments and arm’s-length bodies, follow the law as clarified by the Supreme Court ruling and seek specialist legal advice where necessary. The Prime Minister has underlined this recently.

The Equality and Human Rights Commission has submitted a draft Code of Practice on services, public functions and associations to Ministers, and we are reviewing it with the care it deserves. This will provide further guidance to duty bearers.

Government has allocated up to £5 billion to the new Warm Homes Fund (WHF) to make investments in and loans to the home upgrade sector. We will launch a Call for Evidence early in 2026 to identify where in the market the WHF can deliver the greatest impact, which could include supporting local energy cooperatives or community-led home upgrade schemes.

As part of our proposed partnership approach with local government for the delivery of home upgrades, community energy groups and other local stakeholders will play an important role in area-based delivery.

Additionally, the new Warm Homes Agency, which will be operational from 2027, will play a pivotal role in supporting local partnerships.

The Government is determined to double the pace at which we slash fuel poverty. DESNZ will publish new fuel poverty statistics on 26 March.

As a result of decisions taken in the Budget, energy bills are set to fall by 7% or £117 from April. The expansion of the Warm Home Discount means nearly 6 million households are now eligible for the discount. We will continue to provide this until 2030/31.

We also made a £15 billion investment in the Warm Homes Plan. £5 billion of this is going to low-income and fuel poor households, initially delivered through the Warm Homes: Social Housing Fund and Warm Homes: Local Grant. This is made up of £4.4 billion in direct capital grants and an initial £600 million from the Warm Homes Fund, our new strategic investment facility.

Our plans to introduce minimum energy efficiency standards in the private and social rented sectors will deliver long lasting change with around 650,000 households lifted out of fuel poverty.

The Government is determined to double the pace at which we slash fuel poverty. DESNZ will publish new fuel poverty statistics on 26 March.

As a result of decisions taken in the Budget, energy bills are set to fall by 7% or £117 from April. The expansion of the Warm Home Discount means nearly 6 million households are now eligible for the discount. We will continue to provide this until 2030/31.

We also made a £15 billion investment in the Warm Homes Plan. £5 billion of this is going to low-income and fuel poor households, initially delivered through the Warm Homes: Social Housing Fund and Warm Homes: Local Grant. This is made up of £4.4 billion in direct capital grants and an initial £600 million from the Warm Homes Fund, our new strategic investment facility.

Our plans to introduce minimum energy efficiency standards in the private and social rented sectors will deliver long lasting change with around 650,000 households lifted out of fuel poverty.

The government is committed to delivering on our Mission to make the UK a Clean Energy Superpower. Where necessary, and subject to parliamentary time, we intend to pursue the primary legislative changes needed to deliver on this Mission. We will set out our plans in due course.

The Government recognises that many households, particularly in rural and off‑gas‑grid areas, rely on heating oil as their primary source of heat. We continue to monitor heating‑oil supply chains ensuring households can access fuel when needed. Households using heating oil benefit from wider cost‑of‑living support, including electricity bill reductions announced in the Autumn Budget, and the Warm Home Discount, which provides eligible households with £150 off energy bills until 2030/31. Through the Warm Homes Plan, households can access Boiler Upgrade Scheme grants, and the Government has consulted on alternative low‑carbon options for properties where heat pumps may not be suitable.

The Government’s Warm Homes Plan will deliver growth to our economy, good jobs for our communities, and opportunities for innovation. The number of additional jobs supported in energy efficiency and clean heating is projected to be up to 180,000 by 2030. The Plan outlines the actions the government is taking to support retrofit skills development including launching the £8 million Warm Homes Skills Programme, extending the Heat Training Grant by allocating a further £21 million until March 2029, and establishing a Workforce Taskforce to facilitate the transition to a diverse, skilled and resilient workforce for existing workers and new entrants.

None of this funding was allocated for Hinchingbrooke Hospital.

We are building the evidence base to determine if blending into the transmission network meets the required safety standards, is technically feasible, economic, and supports government’s broader strategic and net zero ambitions. This consultation will help inform the case for and volume of transmission-level blending.

Ofgem is responsible for investigating compliance. In 2024 Ofgem concluded an investigation into Drax’s reporting for the period April 2021 to March 2022. Its investigation included a review of over 3,000 documents. The investigation did not find evidence that Drax had failed to comply with sustainability requirements or had received subsidy payments incorrectly. However, Ofgem identified an absence of adequate data governance and controls and Drax agreed to make £25m voluntary redress payment.

In September 2025 Ofgem and Drax appointed Forvis Mazars to conduct an independent audit of Drax’s annual profiling data and associated reporting across its global supply chain.

The Capacity Market is our main tool for ensuring security of electricity supply and has already successfully secured the electricity capacity GB consumers need out to 2028/29. Interconnectors are part of the capacity mix that it secures. Like all technologies that participate in the Capacity Market, they are de-rated to reflect their expected contribution to security of electricity supply under periods of system stress. In the case of interconnectors, de-rating is based on consideration of expected flows and technical availability.

The Climate Change Act (2008) sets out how government must consider both adaptation and mitigation when designing the pathway to net zero by 2050, through Climate Change Risk Assessments, National Adaptation Programmes and when setting Carbon Budgets.

As set out in the Government's response to the CCC's 2025 adaptation response, where relevant the Government is ensuring climate adaptation and net zero are integrated into research and policy, ensuring we are cutting emissions while building climate resilience. This will include during the process of driving policy action to meet the seventh carbon budget.

Fuel Finder requires all petrol filling stations in the UK to publish prices in a consistent, open format. By increasing price transparency, this increases pressure on fuel retailers to compete strongly to attract consumers by lowering their prices or improving their services at the forecourt, including in areas where competition has historically been weaker, such as rural areas.

The Competition and Markets Authority will continue to monitor and scrutinise fuel prices to assess how well competition is working.

The Government requires installers participating in government heat pump schemes to be certified under the Microgeneration Certification Scheme (MCS).

MCS has required installers to provide a minimum of two years’ cover through Insurance Backed Guarantees, increasing to six years under the reformed MCS.

MCS holds information on installer insurance and checks are carried out to ensure that installers hold appropriate cover.

The Government is closely monitoring the implementation of MCS’ scheme reforms, which will include measures to support consumers even if installers are no longer trading.

Several pilots are running to better understand how we can support SMEs to reduce energy demand, bills and carbon.

The Pilot Business Energy Advise Service, providing energy audits and grants in the West Midlands, could have annual saving of £24m in bills and 51,000 tonnes of carbon based on all recommendations being implemented.

The ZCS Hospitality Trial, will support c600 hospitality SMEs through online carbon and energy reduction tools, with potential to save over £3m in bills and 2,700 tonnes of carbon annually.

The British Business Bank’s pilot Green Growth Guarantee Scheme will facilitate up to £30m of investment in green tech for SMEs and help understand SME appetite for green finance.

Installers participating in government clean heat schemes, including the Domestic Renewable Heat Incentive (DRHI) and Green Homes Grant Voucher Scheme (GHGVS), must be Microgeneration Certification Scheme (MCS) certified. MCS is responsible for setting and upholding technical standards for small scale renewable technologies, and accredited installers are subject to annual audits and site‑based assessments.

Annually for the DRHI, approximately 400 randomly selected, and up to 250 risk-based site audits occur.

GHGVS installers required suitable TrustMark qualifications. TrustMark conducts site audits, but the department does not hold statistics on this.

Billing issues, for both domestic and non-domestic customers, are a matter for Ofgem as the sector regulator. Ofgem’s licence conditions require suppliers to take all reasonable steps to reflect accurate meter readings in bills or statements sent to customers where these have been provided by a customer or obtained by the supplier.

We are rolling out smart meters to smaller businesses, and our latest data shows that almost two thirds of meters in non-domestic premises are smart or advanced meters. Smart meters enable accurate billing by automatically recording energy use in every half-hour period, allowing bills based on actual rather than estimated usage.

Since December 2024, Small and Medium Enterprises (SMEs) with fewer than 50 employees have been able to access free support to resolve issues with their energy supplier through the Energy Ombudsman. This means that 99% of British businesses can now access this service with outcomes ranging up to £20,000 in financial awards. We consulted in late 2025 on measures to strengthen the Ombudsman’s tools for ensuring suppliers implement decisions in a timely manner.

Billing issues, for both domestic and non-domestic customers, are a matter for Ofgem as the sector regulator. Ofgem’s licence conditions require suppliers to take all reasonable steps to reflect accurate meter readings in bills or statements sent to customers where these have been provided by a customer or obtained by the supplier.

We are rolling out smart meters to smaller businesses, and our latest data shows that almost two thirds of meters in non-domestic premises are smart or advanced meters. Smart meters enable accurate billing by automatically recording energy use in every half-hour period, allowing bills based on actual rather than estimated usage.

Since December 2024, Small and Medium Enterprises (SMEs) with fewer than 50 employees have been able to access free support to resolve issues with their energy supplier through the Energy Ombudsman. This means that 99% of British businesses can now access this service with outcomes ranging up to £20,000 in financial awards. We consulted in late 2025 on measures to strengthen the Ombudsman’s tools for ensuring suppliers implement decisions in a timely manner.

The department does not collect this data.

For the DRHI installers were required to be members of the Microgeneration Certification Scheme (MCS)and a Chartered Trading Standards Institute approved Consumer Code, which provided routes for complaints handling and alternative dispute resolution. Access to redress in cases of installer insolvency depends on individual circumstances.

For the GHGVS consumers were required to seek advice from a suitably qualified TrustMark registered installer before they applied for a voucher. Consumers are entitled to remediation by their installer or, failing that, the insurance-backed guarantee, or using the TrustMark dispute resolution process to seek redress

The department’s role is limited to signposting consumers to appropriate sources of support, such as the Consumer Code, MCS or independent advice services.

The Department for Energy Security and Net Zero employs one Director with responsibility for human resources across DESNZ. In addition, Ofgem, a Non‑Ministerial Department, employs one Director with responsibility for human resources. Of these two Directors, both hold professional Human Resources qualifications from the Chartered Institute of Personnel and Development or an equivalent professional body.

We keep the Contracts for Difference scheme under review and consult on potential reforms ahead of each allocation round. We have also introduced the Clean Industry Bonus which allows for other factors such as supply chain investments to be taken into account as part of the process.

The UK's National Wealth Fund (NWF) has estimated that its portfolio of investments will deliver an additional 6.4 GW of clean energy generation capacity across solar, wind, nuclear, and other technologies. A significant portion of this comes from the Fund's commitment of up to £36.6 billion for the Sizewell C nuclear power station, which is projected to provide 3.2 GW of additional low-carbon baseload generation capacity by the mid-2030s.

NWF is also investing in the storage and transmission capacity needed to enable additional generation capacity, including investments to deliver 7 GW of distributed storage and 4 GW of transmission upgrades.

NWF recently provided investment in the Pentland Floating Offshore Wind Farm; a 92.5 MW demonstrator project to prove out a technology which has the potential to deliver 24 GW of clean generation capacity in Scotland alone. This investment was provided alongside Great British Energy (GBE).

GBE will play a key role alongside the National Wealth Fund in driving the private investment needed to deliver our Clean Energy Mission, with an ambition to deliver at least 15 GW in clean energy generation and storage capacity by 2030 - enough to power the equivalent of almost 10 million homes.

The Government is aware of the growing interest in private offtake agreements, particularly from energy-intensive sectors, and will explore options brought forward by privately led projects that supporting such arrangements as part of the Advanced Nuclear Framework.

Carbon capture, usage, and storage (CCUS) is essential for fully decarbonising clinker production within the cement sector, which is critical for producing foundational materials for the UK economy.

40% of the UK’s cement and lime is produced in Derbyshire and Staffordshire. The Peak Cluster would therefore significantly contribute to the region’s decarbonisation.

Together, the Peak Cluster and Morecambe Net Zero project stated in a recent study that they could create and safeguard 13,000 jobs. This includes:

• Over 2,000 existing jobs in the cement and lime industry

• Around 300 new jobs created at manufacturing sites

• 1,200 temporary jobs created for the construction of the pipeline and capture facilities

Government works closely with industry, regulators and other stakeholders to continually improve and maintain the resilience and reliability of electricity infrastructure, networks and assets. This is to reduce vulnerabilities and ensure an effective response to actual or potentially disruptive incidents. Energy resilience is a top priority for Government which is why my Department will publish an Energy Resilience Strategy in 2026.

Carbon capture, usage and storage is integral to decarbonising the cement sector’s production of clinker and making the sector competitive in a net zero economy.

Government has signed the UK’s first industrial carbon capture contracts with Heidelberg Materials UK’s Padeswood cement works, showing our commitment in this regard. In addition, the National Wealth Fund has made a £28.6 million equity investment in Peak Cluster.

Furthermore, DESNZ in partnership with Innovate UK is supporting the Advance Market Commitment (AMC) for next-generation low-carbon concrete. This initiative aims to accelerate the scale up and adoption of low carbon concrete solutions through creating a guaranteed market for these products. Industry supporters who have made commitments include Scottish Water, Ramboll, Derwent London, Atkins Realis UK, and Heathrow.

There is already 2.8GW of pumped storage hydropower (PSH) on the GB electricity system, which is a form of Long Duration Electricity Storage (LDES). The government agrees that GB needs more LDES, which is why the Clean Power 2030 Action Plan envisages an expansion of capacity of 1.2 to 3.2 GW by 2030 compared to today’s level and also why the National Electricity System Operator (NESO) has published advice that 2.7 to 7.7 GW more LDES is required by 2035 compared to today’s level. In October 2024, this government brought in the LDES cap and floor investment support scheme to deliver new LDES capacity. The scheme is being delivered by Ofgem and is technology neutral (and so could support a number of LDES technologies, including those referenced in the questions). Ofgem plans to consult this spring on the LDES projects it is minded to grant a cap and floor scheme to from its first LDES allocation round.

There is already 2.8GW of pumped storage hydropower (PSH) on the GB electricity system, which is a form of Long Duration Electricity Storage (LDES). The government agrees that GB needs more LDES, which is why the Clean Power 2030 Action Plan envisages an expansion of capacity of 1.2 to 3.2 GW by 2030 compared to today’s level and also why the National Electricity System Operator (NESO) has published advice that 2.7 to 7.7 GW more LDES is required by 2035 compared to today’s level. In October 2024, this government brought in the LDES cap and floor investment support scheme to deliver new LDES capacity. The scheme is being delivered by Ofgem and is technology neutral (and so could support a number of LDES technologies, including those referenced in the questions). Ofgem plans to consult this spring on the LDES projects it is minded to grant a cap and floor scheme to from its first LDES allocation round.

I can confirm that I have not seen any statements (redacted or otherwise) made by the Drax former company Secretary Brett Gladden.

In April 2025 we shortlisted 27 projects to remain in the Hydrogen Allocation Round 2 (HAR2) process. We have now finished due diligence and cost assurance on these projects.

Projects which pass will enter an Invite to Offer stage where we will award contracts to successful projects.

We hope to move into this stage soon and aim to award contracts in 2026.

The measures taken in the Autumn Budget reduce the cost of electricity and therefore benefit all households with a domestic electricity meter, including those not on the gas grid. In addition, on 30 January, we announced the continuation of the Warm Home Discount scheme until 2030/31, providing around 6 million eligible households with the £150 rebate on their energy bills each winter.

The Department keeps heating oil prices and market conditions under review and produces official statistics on petroleum and crude oil prices, including prices of gas oil and standard grade burning oil on a monthly basis which can be found here.

Ofgem’s supplier license conditions and other legal protections have not sufficiently protected non-domestic consumers from exploitative and harmful practices by some Third-Party Intermediaries (TPIs). That is why last year, the Government announced its plans to directly regulate TPIs, by appointing Ofgem as regulator when parliamentary time allows.

The Department does not collect data on smart meter installations at a constituency level. The latest statistics are available here:

https://www.gov.uk/government/statistics/smart-meters-in-great-britain-quarterly-update-september-2025.

The Government is working closely with the Data Communications Company (DCC) - the licensed body responsible for providing communication and data services for smart metering in Great Britain - and energy suppliers to ensure smart meter connectivity can be extended to currently unserved properties in all regions as soon as reasonably possible. One solution currently being trialled will involve a Virtual Wide Area Network (VWAN) - a new option that, with their consent, uses customers’ broadband connections to carry smart metering communications.

The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently. The creation of Great British Energy will help us to harness clean energy with less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030.

In the short-term, the Government wants to provide businesses with better protection from being locked into unfair and expensive energy contracts, and more redress when they have a complaint. That’s why the Government has decided to regulate Third-Party Intermediaries (TPIs), such as energy brokers. This will improve consumer outcomes and enhance consumer protections for non-domestic consumers, particularly charities and small businesses. Regulation will be introduced once parliamentary time allows.

This Government is transforming the apprenticeships levy into a new growth and skills levy, backed by £725 million additional investment, which will deliver greater flexibility to employers and learners in England and support the industrial strategy.

To support SMEs in all sectors to take on apprentices, the government will fully fund apprenticeship training for non-levy paying employers (essentially SMEs) for all eligible people aged under 25 from the next academic year. This change will make it easier for those employers to engage with apprenticeships by cutting costs and reducing bureaucracy for both them and their training providers.

As set out in the Clean Energy Jobs Plan, DESNZ works closely with the Department for Work and Pensions and Skills England to ensure the skills system, including apprenticeships, delivers the workforce needed for our clean energy mission.

The estimates are published in Ofgem’s Annex 4 (policy cost allowance methodology - https://www.ofgem.gov.uk/sites/default/files/2025-11/Annex-4-policy-cost-allowance-methodology-v1.22.xlsx).

This Government is transforming the apprenticeships levy into a new growth and skills levy, backed by £725 million additional investment, which will deliver greater flexibility to employers and learners in England and support the industrial strategy.

To support SMEs in all sectors to take on apprentices, the government will fully fund apprenticeship training for non-levy paying employers (essentially SMEs) for all eligible people aged under 25 from the next academic year. This change will make it easier for those employers to engage with apprenticeships by cutting costs and reducing bureaucracy for both them and their training providers.

As set out in the Clean Energy Jobs Plan, DESNZ works closely with the Department for Work and Pensions and Skills England to ensure the skills system, including apprenticeships, delivers the workforce needed for our clean energy mission.

National Energy System Operator (NESO) is an operationally independent public body and manages their own pension arrangements. The Department does not hold detailed information on NESO’s defined contribution pension scheme. There is some information available publicly in NESO’s latest annual report and accounts.

The Government’s Warm Homes Plan (WHP) - which represents the biggest ever investment in home upgrades, is an offer for every household.

Park home residents can apply for support via a range of Government schemes including the Warm Homes: Local Grant, and ECO4 - which Government intends to extend until the end of the year, subject to Parliamentary approval. All eligible households in England and Wales can benefit from the expanded Boiler Upgrade Scheme, funded with £2.7 billion to 2030. BUS provides grants up to £7,500 to help households with the upfront costs of installing heat pumps and biomass boilers. In addition, the 0% VAT rate on heat pumps installations offers further financial support.

We are also working with the finance sector to make a range of low-cost finance solutions available to homeowners, with Government backing a total loan portfolio of £2 billion, including up to £1.7 billion from our new Warm Homes Fund.

Residents who are not directly supplied with electricity may also be eligible for support with their bills through the Park Homes Warm Home Discount scheme.