Department for Energy Security & Net Zero

DESNZ has assessed the adequacy of take-up of the Industrial Energy Transformation Fund (IETF) through the Evaluation of the Industrial Energy Transformation Fund (alongside the IETF Benefit Report), published on 29th of January 2026.

The evaluation found that the IETF was viewed by the majority of beneficiaries as an attractive offer by grant recipients and has supported the deployment of mature industrial decarbonisation technologies at scale. It found that most projects delivered by grant recipients would not have proceeded in the absence of IETF support, and that the fund filled a gap in capital expenditure support for these types of initiatives, allowing companies to take on more risk with feasibility studies and non-core technology projects.

The Government and Ofgem continuously monitor the non-domestic energy market to ensure that good outcomes are being delivered for all consumers.

Recently, the Secretary of State and Ofgem’s Interim CEO wrote to non-domestic supplires and Third-Party Intermediaries (TPIs) to set out their expectations on how consumers should be supported during the current energy price volatility.

The Government and Ofgem have collaborated to deliver a range of interventions in response to the findings of Ofgem’s non-domestic market review and the Government plans to directly regulate TPIs, by appointing Ofgem as regulator when parliamentary time allows. This will protect non-domestic consumers from exploitative and harmful practices employed by some TPIs.

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The government recognises that capital costs are a significant barrier for businesses looking to electrify. The government remains committed to supporting electrification for the non-domestic sector and addressing barriers to investment.

Eligible businesses can receive grants of £7500 towards the cost of purchasing and installing heat pumps through the Boiler Upgrade Scheme, and last week (21 April) we announced an increase to £9,000 in grant support for those properties heated by oil and LPG.

We are also continuing to develop policies to bring down electricity costs relative to gas for the non-domestic sector as well as reducing initial capital costs for electrification. We intend to consult on options to reduce costs and make low carbon heat the economically rational choice for a wider range of businesses in due course. Stakeholders will have a voice in shaping future electrification policy.

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The Data Communications Company (DCC) is the organisation responsible for the smart metering network in Great Britain, and is obligated to provide smart meter network connectivity to at least 99.25% of premises across GB. The Government is working closely with the DCC to ensure that smart meter connectivity can be extended to the small minority of unserved properties in all regions, including rural areas, as soon as reasonably possible.

One such solution, currently being rolled out, is Virtual WAN (VWAN) which involves using customers’ broadband connection (with consent) to carry smart metering communications.

The Data Communications Company (DCC) is the organisation responsible for the smart metering network in Great Britain, and is obligated to provide smart meter network connectivity to at least 99.25% of premises across GB. The Government is working closely with the DCC to ensure that smart meter connectivity can be extended to the small minority of unserved properties in all regions, including rural areas, as soon as reasonably possible.

One such solution, currently being rolled out, is Virtual WAN (VWAN) which involves using customers’ broadband connection (with consent) to carry smart metering communications.

Energy re-sold to non-domestic tenants is a commercial matter between those two businesses dependent on their contract terms. Landlords in these situations have a legal duty to regularly inform their tenants of how much energy they have used and the price they have been charged for that energy.

The Government recognises that leasehold ownership can create additional complexity, as many must secure consent from freeholders before installations can proceed. The Warm Homes Plan committed to working with relevant organisations on how to remove barriers to low carbon heating installations in leasehold properties.

Announced on 21 April, the Government will consult this summer on expanding permitted development rights to make heat pump installation easier, including amending siting restrictions and seeking views on enabling more installations in flats.

The Warm Homes: Local Grant and Boiler Upgrade Scheme provide funding to support property owners, including leaseholders, to transition to low‑carbon heating.

Consumer protection rules are a matter for Ofgem, as the independent regulator. The Department continues to work closely with them to take forward the recommendations from the 2024 Non-Domestic Market Review, such as expanding access to the Energy Ombudsman and the development of a new regulatory regime for Third Party Intermediaries, such as energy brokers.

As part of its Consumer Confidence programme, Ofgem has developed consumer outcomes for all consumers, both domestic and non-domestic. These clarify the consumer outcomes Ofgem wants the sector to deliver and how they will be embedded into its regulatory framework.

We are building on the outcomes of Ofgem’s 2024 report into the non-domestic market, and subsequent actions to improve practices: Non-domestic market review: decision | Ofgem

The Government and Ofgem continuously monitor the non-domestic energy market to ensure that there is a competitive market that is able to drive good outcomes for all consumers.

The Government also plans to directly regulate Third-Party Intermediaries (TPIs), by appointing Ofgem as the regulator when parliamentary time allows. A regulated TPI market will drive pro-consumer competition between energy brokers and deliver better outcomes for energy consumers.

Since 2024, Ofgem’s requirement for a contract’s principal terms to clearly display any broker fees has applied to all non-domestic consumers.

However, the Government is aware that some rogue brokers continue to exploit consumers through excessive hidden commissions and other predatory sales tactics. That is why the Government plans to stamp out this exploitative behaviour, by appointing Ofgem to directly regulate Third-Party Intermediaries (TPI), including energy brokers, when parliamentary time allows.

Ofgem data, as of 31 March, shows that around 10–12% of businesses are on deemed contracts: Managing business energy costs in an uncertain market | Ofgem.

Under Ofgem’s regulations suppliers must take all reasonable steps to ensure the terms of deemed contracts are not “unduly onerous”, including where revenue derived from deemed contracts significantly exceeds the supplier’s costs.

The Government is working closely with Ofgem on reforms to strengthen protections and transparency in the non-domestic energy market, including the role of intermediaries. Businesses should check contract end dates, discuss renewal terms early, and compare offers to avoid being placed on out-of-contract rates, and secure good value contracts.

Ofgem is the independent regulator for gas and electricity markets in Great Britain.

Ofgem’s regulatory regime sets out the requirements which non-domestic energy suppliers are required to adhere to. This includes a requirement that non-domestic consumers are treated fairly and set standards around billing and customer protection. These are further underpinned by the Retail Energy Code, which licenced suppliers are required to comply with.

In addition, the Secretary of State for Energy Security and Net Zero and Ofgem’s interim CEO recently wrote to non-domestic suppliers and energy third party intermediaries to set out their expectations as to how non-domestic customers should be supported during this period of price volatility.

The Secretary of State meets regularly with a wide range of stakeholders, where they discuss a variety of issues.

Small businesses have been able to access the Energy Ombudsman since December 2024. Ofgem’s Complaints Handling Standards require energy suppliers to have suitable complaints processes for small business consumers and to signpost the Energy Ombudsman when matters have not been resolved.

To further ensure that consumers are protected when things go wrong, we are proposing to strengthen the position of the Energy Ombudsman. This will allow consumers to have access to fairer and faster redress and will ensure that decisions made by the Ombudsman are implemented on time and in full.

The government’s primary focus is on ensuring energy is affordable for all businesses, and that the right protections are in place for them in the energy market.

Suppliers and their representatives must follow strict rules regarding debt recovery practices and meet expectations to treat their customers fairly, as per Ofgem’s supplier licence conditions. In 2023, Ofgem reaffirmed their expectations in a letter to all suppliers on the treatment of non-domestic customers during debt management and disconnection.

The Government is providing funding for the Boiler Upgrade Scheme, increasing each year to 2029/30. Currently, the grant available for air source heat pumps and ground source heat pumps is £7500 and for air-to-air heat pumps is £2500. A one-year increase to £9000 for properties heated by oil or LPG was announced on 21 April.

Specific funding for owners of commercial premises may be available through local schemes. Businesses can search for local grant and advice schemes on the finance and support for businesses page on gov.uk.

The UK Business Climate Hub also provides support to non-intensive industries.

The government is providing significant funding to catalyse progress on industrial decarbonisation, including £9.4 billion in capital funding for carbon capture, usage and storage and £500 million to support hydrogen infrastructure.

We are also continuing to develop policies to bring down electricity costs relative to gas for the non-domestic sector, including industry, and intend to consult on options. Further details will be set out in our new forthcoming plan for industrial decarbonisation in due course.

It has not proved possible to respond to this question in the time available before Prorogation. I will correspond directly with the noble Lord.

It has not proved possible to respond to this question in the time available before Prorogation. I will correspond directly with the noble Lord.

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It has not proved possible to respond to the hon. Member in the time available before Prorogation.