Department for Energy Security & Net Zero

The latest official Fuel Poverty Statistics for England were published in February 2023 on gov.uk here: https://www.gov.uk/government/collections/fuel-poverty-statistics#2022-Statistics

In addition to reporting against the official fuel poverty metric for England, these statistics included an affordability measure of the number of households required to spend more than 10 per cent of their income on domestic energy. These can be found in Annex D: Affordability measures for England, of the annual report.

Affordability measure estimates are not held at sub-national level. Figures are available at sub-national level for fuel poverty under the Low-income Low energy efficiency (LILEE) metric, on gov.uk here: https://www.gov.uk/government/statistics/sub-regional-fuel-poverty-data-2023-2021-data

Data on average household electricity and gas bills are published as part of the Quarterly Energy Prices statistical series here:

https://www.gov.uk/government/statistical-data-sets/annual-domestic-energy-price-statistics

The Department collects this information at a regional level (in Tables 2.2.3 and 2.3.3) but does not hold data at the constituency level. Initial estimates for annual bills for 2023 are scheduled for publication on 21 December 2023.

Smart Energy GB is responsible for national consumer engagement on the rollout of smart meters in Great Britain. It is an independent, not-for-profit organisation fully-funded by energy companies.

Energy suppliers are responsible for leading engagement directly with their customers to encourage them to take up smart meters.

Details of major funding programmes, including those administered by local government or other local bodies, are available on Gov.uk.

The Government published how the Department for Energy Security and Net Zero’s current year budget has been allocated in the 2023-24 Main Estimate. The Government will publish the equivalent information for the 2024-25 financial year in the forthcoming 2024-25 Main Estimate. Departmental headcount figures are published each year in the Department’s Annual Report and Accounts.

The publication on 16 November of core parameters, including Administrative Strike Prices (ASPs) for the next Contracts for Difference (CfD) round, does not determine impacts on consumer bills. The ASPs are the maximum prices available for renewable electricity, with the actual price being achieved through a competitive auction process. Renewable electricity procured through the CfD continues to provide value for money for consumers by capping the price paid to generators.

My Rt hon Friends the Prime Minister and the Secretary of State will attend COP28, as well as Ministers from the following departments: Foreign, Commonwealth & Development Office, Department for Environment, Food & Rural Affairs, HM Treasury, Department for Transport, and Department for Health and Social Care.

The Prime Minister’s Trade Envoys to Bangladesh and Japan are attending COP28 as part of the UK’s wider delegation of Climate Parliamentarians.

The Government responded to the Committee’s report in June 2021 explaining that it was unable to agree to the Committee’s recommendations. That response is available to read here.

As at June 2023, there were 48 members of the Mineworkers’ Pension Scheme in Ceredigion and 13,838 in Wales as a whole. These are the most recent available figures.

Electricity network operators are private companies which build, own, and operate electricity network infrastructure. As regional monopolies, they are regulated by the

independent energy regulator, Ofgem. Ofgem uses the price control framework to set the level of investment in infrastructure for each network company and their allowable rate of return. The costs incurred in the maintenance, reinforcement, and new build of

Electricity network infrastructure are recovered mainly through electricity consumers’ bills. The price control and charging arrangements are matters for Ofgem.

On 22 November, the Government published its community benefits for transmission network infrastructure government response. Within this we confirmed our intention for eligibility for wider community benefits to be agreed on a project-by-project basis. For electricity bill discounts, we will work up further proposals on eligibility, including on proximity, and will provide an update in 2024.

I met with the Welsh Government’s Minister for Climate Change, to discuss the Transmission Acceleration Action Plan in advance of publication. Speeding up the deployment of electricity networks across Great Britain is a key shared objective and the UK Government has worked with the Welsh Government to develop the Action Plan and will continue to do so as it is implemented.

The setting of the Typical Domestic Consumption Values, for both gas and electricity, is a matter for Ofgem as independent regulator. Ofgem assesses and normally reviews the values every two years using updated figures to reflect observed energy consumption among households. The lowering of values this year reflects a long-term trend of reducing household consumption. The Government will continue to work closely with Ofgem and monitor household consumption, especially in the context of increased energy costs and wider cost of living pressures.

Decisions on the price cap methodology are for independent regulator Ofgem. The cap limits the amount energy suppliers can charge for each unit of gas and electricity, as well as the maximum standing charge consumers pay for access to the grid. The law requires Ofgem to ensure the cap level reflects the underlying efficient costs of supplying energy. The default tariff cap does not reduce prices below what it costs to serve customers, including the costs of purchasing wholesale gas and electricity.

The Government recognises the challenges posed by cost-of-living pressures, including the impact of energy bills, and is already providing extensive financial support to households. This includes a package of support to assist households and individuals with rising costs of living that will total over £104 billion, or £3,700 per household on average, over 2022-2025.

Millions of vulnerable households across the UK are receiving up to £900 in further Cost of Living Payments this year.

These payments are in addition to established financial support in Great Britain, including the Warm Home Discount, Winter Fuel Payment and Cold Weather Payment. Decisions on established financial support in Northern Ireland are devolved to the Northern Ireland Executive.

Ofgem regularly publishes data on households in debt and arrears, here:

https://www.ofgem.gov.uk/publications/debt-and-arrears-indicators

The Government understands the challenges that are posed by cost-of-living pressures that includes energy bills and the impact of debt. Energy prices have fallen significantly with the price cap more than halving from £4,279 in January 2023 to £1,834 since the start of October 2023.

This coincides with the £900 cost-of-living payment being provided by the Government across 2023/24, which has increased from the £650 provided the previous year. The Government continues to closely monitor energy prices and will keep support schemes under review.

DESNZ has responsibility for the measurement of fuel poverty in England. The latest

estimates of fuel poverty in England are available

https://www.gov.uk/government/collections/fuel-poverty-statistics

Fuel poverty is a devolved matter and different metrics of fuel poverty are used in the Devolved Administrations. The latest fuel poverty estimates for Northern Ireland, published by the Northern Ireland Housing Executive are available here: Estimates of fuel poverty in Northern Ireland in 2020 and 2021 (nihe.gov.uk)

The Secretary of State's role is to set out the planning policy in National Policy Statements, updated versions of which were laid before Parliament and published last week, and then decide on applications on the basis of all the relevant considerations in each case. It is not the role of the Secretary of State to choose the location of a project.

Co-location is not a requirement for a planning application, but, as set out in the Government's National Policy Statements, applicants are encouraged to work collaboratively with other developers and should demonstrate good design. They should also consider opportunities to maximise co-location possibilities for their projects where this may mitigate the impact on communities or the environment.

The decommissioning of all offshore wind turbines, including blades, is a legal obligation for the owners and their plans must be approved by the Secretary of State. Full removal of all offshore renewable energy installations is the default position and installations should be designed and constructed to facilitate that.

For onshore wind turbines and blades, when a local planning authority grants planning permission this will typically include conditions for decommissioning, such as returning a site to its previous state.

In both cases, all waste should be disposed of in accordance with the waste hierarchy.

The decommissioning of wells is important to enable the safety and integrity of the well to protect the marine environment. The relevant regulators, Offshore Petroleum Regulator for Environment and Decommissioning (OPRED), HSE and NSTA continue to work together to ensure well decommissioning is progressed in accordance with the relevant safety and environmental regulations and standards.

The UK has already seen floating solar PV projects, such as at the Queen Elizabeth II Reservoir. The Government welcomes more proposals, as large scale deployment of all solar types will be needed to achieve its 70GW target by 2035.

Floating solar is eligible for support under the Contracts for Difference scheme.

The joint Government/Industry Solar Taskforce is looking at further actions to unlock deployment across a wide range of solar types, including floating solar.

EDF is the lead investor at Hinkley Point C and they have provided a target date for commercial operations for Unit Reactor 1 of June 2027, with Unit Reactor 2 following a year later in June 2028. Both units have a risk of a delay of 15 months. We expect Sizewell C to be generating power from the mid-2030s, subject to ongoing project development and the timing of a Final Investment Decision.

I refer the hon. Member to the answer I gave on 14 September 2023 to Question UIN 198552.

There is a range of funding available to the community energy sector. This includes the new £10m Community Energy Fund, as well as UK growth funding such as the UK Shared Prosperity Fund, worth up to £2.6bn for investment in places. Community energy groups can access these through working with local authorities.

The Government aims to open applications to the Community Energy Fund as soon as possible.

My right hon. Friend the Secretary of State has regular discussions with Cabinet colleagues, including how Government can support landlords to improve the energy efficiency of homes.

The Government is spending £6.6bn this Parliament and a further £6bn to 2028 on making buildings cleaner and warmer. Plus, an estimated £5bn is to be delivered through the Energy Company Obligation and the Great British Insulation Scheme up to March 2026.

The Government has launched a brand-new eligibility tool on our ‘Help for Households’ GOV.UK page that will help people find the support available to them via the Home Upgrade Grant and the Great British Insulation Scheme.

The Government reads publications from the International Energy Agency with interest and will consider the contents of its latest report carefully. As recognised in the report, the oil and gas industry is well placed to scale up some of the key technologies needed to reach net zero such as hydrogen, carbon capture, and offshore wind.

The Government recognises the important roles that renewables developers, contractors and suppliers play in contributing to the achievement of its net zero targets.

The Government has provided significant additional funding for renewable energy projects this autumn. Provisions include support via the next Contracts for Difference Allocation Round, funding for renewables manufacturing, and investment tax measures.

The Government is actively working with the Community Energy Contact Group on the content and timetable for a consultation on barriers for community energy projects. Whilst the Government hopes to publish the consultation as soon as possible, until these discussions have concluded it is not possible to outline a definitive timeline.

Increasing the proportion of biomethane in the gas grid is a practical and cost-effective way of reducing carbon emissions. It can be used flexibly across different end uses with the potential to help decarbonise heating, transport, power generation and agriculture.

The Green Gas Support Scheme (GGSS) provides tariff support for biomethane produced and injected into the gas grid. The Department recently announced an extension to the scheme to 31 March 2028. The Government will consult on introducing a policy framework to follow this to facilitate continued growth of the market and is carrying out research and evaluation to support policy development.

This information is not held centrally by the department. DESNZ is a new department, so the risk is unlikely to be recorded.

The accounting systems track IT spend, but do not capture the level of detail readily to identify spend on Infrastructure or legacy systems. Determination of legacy IT will require more work; the Legacy Risk Assessment will be prepared and submitted to Cabinet by the end of the current Financial year. Currently, within our centrally managed digital function, there is no legacy IT of any material size or value.

The evidence to support the claim that underground lines can be up to 10 times more expensive than overhead lines comes from an independent 2012 report endorsed by the Institution of Engineering & Technology called “Electricity Transmission Costing Study”, which can be found at https://www.theiet.org/impact-society/factfiles/energy-factfiles/energy-generation-and-policy/electricity-transmission-costing/ (also attached).

The Social Housing Decarbonisation Fund (SHDF) is a 10-year, £3.8bn 2019 manifesto commitment. £6 billion of new Government funding will be made available from 2025 to 2028 in addition to the £6.6 billion allocated in this Parliament to energy efficiency and clean heat in buildings. Conversations are continuing with HM Treasury to assess SHDF’s share of the £6bn to be made available from 2025 to 2028, and provide long-term funding certainty, support the growth of supply chains and ensure we can scale up our delivery over time.

The Government frequently assesses the merits of energy cost support policies and the impacts various policy ideas would have on the most vulnerable households.

The Government is continuing to provide targeted support for vulnerable households as prices come down. In 2023-24 the Government is already providing additional cost of living payments of up to £900 to households on means-tested benefits, £300 to pensioner households, and £150 to those on eligible disability benefits.

This is alongside existing and ongoing energy bills support for the most vulnerable that includes the:

• Warm Home Discount providing a £150 rebate on electricity bills for up to three million households in most need this winter;
• Winter Fuel Payment, worth between £250 - £600;
• Cold Weather Payment, a £25 payment for vulnerable households on qualifying benefits, is also available to help with the cost of bills when the weather is or expected to be unusually cold.

The Government published its response to the Climate Change Committee’s 2023 Progress Report on 26 October 2023, which can be found here: https://www.gov.uk/government/publications/committee-on-climate-change-2023-progress-report-government-response

The Government is continuing to provide targeted support for vulnerable households as prices come down. In 2023-24 the Government is already providing additional cost of living payments of up to £900 to households on means-tested benefits, £300 to pensioner households, and £150 to those on eligible disability benefits.

This is alongside existing and ongoing energy bills support for the most vulnerable that includes the:

• Warm Home Discount providing a £150 rebate on electricity bills for up to three million households in most need this winter;
• Winter Fuel Payment, worth between £250 - £600;
• Cold Weather Payment, a £25 payment for vulnerable households on qualifying benefits, is also available to help with the cost of bills when the weather is or expected to be unusually cold.

The Department’s Generation Costs Report 2023 is regularly updated based on externally reviewed evidence. These external reports are also published in the Energy Generation Cost Projections collection on GOV.UK.

The 44 £/MWh is based on cost and technical assumptions from an externally reviewed evidence base and internal modelling. These are shown in the technical annex to the report.

The Department’s Generation Costs Report 2023 is regularly updated based on externally reviewed evidence; these external reports are also published containing detailed description of underlying assumptions.

The 61% net load factor assumed for offshore wind plants commissioning in 2025 is derived from DESNZ modelling of wind turbine load factors. This calculation combines a theoretical turbine power curve (power output as a function of wind speed, modelled using turbine technology parameters including rotor swept area and hub height) with historic site-specific Virtual Met Mast (VMM) hourly wind speed data sourced from the UK Met Office.

The UK has decarbonised more than any other economy. Between 1990 and 2021, the UK reduced its emissions by 48%. The UK works through COP and other forums to advocate for faster decarbonisation.

The UK is committed to spend £11.6bn on International Climate Finance (ICF) in those countries most affected by climate change. This includes a tripling of funding for climate adaptation from £500m in 2019 to £1.5bn in 2025.

In the published International Development White Paper, the UK announced that it will aim for more than half of all bilateral aid to go to least developed countries.

Local Authorities applied for funding under Phase 2 of the Home Upgrade Grant within the bid window of September 2022 to January 2023, and were able to begin delivering installs of energy efficiency measures from April 2023. The timeframe for the assessment of homes and installation of energy efficiency measures will depend on the relevant local authority, but all projects should be completed by March 2025.

COP28 will be judged by whether it leads to a step change in ambition and action to keep the 1.5 ° in reach. We will set out more detail on these priorities in a Written Ministerial Statement before COP28.

HMG is backing new Nuclear with £1.2bn committed to support Sizewell C, completed the SMR competition initial down-selection, thanks to the newly established Great British Nuclear, and investing up to £75m in our Nuclear Fuel fund, in addition to the £385m already provided through our Advanced Nuclear Fund.

We are aware of the challenges that vulnerable consumers are facing this winter.

This is why further to additional cost of living support of up to £900, we are delivering targeted energy support through the Warm Home Discount, Winter Fuel and Cold Weather payments.

The UK is a global leader in offshore wind and attracts investment from all over the globe. Our ambition of 50GW by 2030 is world leading as we have a strong pipeline of projects and the world’s five largest operational offshore windfarms.

We are stimulating investment and creating new jobs and making £960 million available for a Green Industries Growth Accelerator to support green manufacturing alongside £160m to kick start investment in port infrastructure. Industry has supported our action with Renewable UK’s CEO welcoming this Government’s strong commitment to the sector.