Department for Energy Security & Net Zero

The Department is aware of the volume of data centre projects in the connections queue, and on 12 March, published a consultation on measures to manage oversubscription and secure capacity for viable data centre projects, while meeting the needs of the energy system. These include increasing financial requirements on data centres to obtain or retain a connection agreement and moving to a strategically aligned process for data centre connections in future.

The consultation also asks about the impact of flexible connection agreements on data centres to further secure system operability and protect consumers from unnecessary costs while supporting timely connections.

Ofgem's Call for Input draws on data collected by the National Energy System Operator (NESO) in which 140 prospective data centres self-reported their presence in the pipeline for connections. 19 of these were located in Scotland. However, these responses were voluntary and represent developer intent rather than confirmed deliverability. NESO is undertaking further work to validate the results including issuing a mandatory Information Request Notice to demand connection customers on 11 March.

The Government, NESO and Ofgem have worked together with industry to identify specific actions to support an increase in large non-domestic consumer-led flexibility, setting those actions out in the Clean Flexibility Roadmap, published in 2025.

Data centres, like other non-domestic users, can play a role in being flexible with their usage, generating system benefits that will help all energy users. Government is currently consulting on whether some categories of large demand users should be required to provide a minimum level of demand flexibility as a condition of connection.

On electric vehicle uptake, the Department for Transport has not assessed the potential impact of current electricity costs on the rate of uptake, and it is too early to determine how changes in fuel and electricity prices may influence electric vehicle adoption. The Department for Transport will monitor closely and remains fully committed to the ZEV transition.

On energy pricing, Ofgem are reviewing how we could recover energy system costs from consumers (including consumers who own electric vehicles) in ways that are fairer and more efficient through their Cost Allocation and Recovery Review. DESNZ are working closely with the regulator on this.

The Impact Assessment does not identify significant consumer price impacts and finds that compliance costs for domestic maritime operators are modest relative to their overall operating costs, with fuel and carbon costs forming only one part of total running costs. These findings are consistent with international evidence showing changes to ferry ticket prices in the low single digit range under equivalent carbon pricing.

The Government will review the maritime element of the United Kingdom Emissions Trading Scheme in 2028 to ensure that its impacts remain accurate, proportionate and fully assessed as the sector continues to decarbonise.

The Government is in frequent communication with the UK and Ireland Fuel Distribution Association (UKIFDA) to monitor heating oil supply and pricing. We are aware that some customers are experiencing delays or difficulties in receiving heating oil deliveries; this was due to an increase in demand. This has now reduced, and industry are reporting that demand has returned to the normal level expected for this time of year.

The Prime Minister confirmed £53 million of immediate support for those most exposed to changing heating oil prices on Monday 16 March.

The Warm Homes: Local Grant and Warm Homes: Social Housing Fund support eligible households– including in rural areas and off gas grid to upgrade their homes, with measures including insulation, solar, batteries, and heat pumps.

All eligible households in England and Wales can benefit from the Boiler Upgrade Scheme (BUS) to support low-carbon heating installations, funded with £2.7 billion to 2030. There is a strong uptake of BUS grants in rural areas, with 49% of all grants given to rural properties to date.

Additionally, the government has consulted on alternative heating solutions to ensure every household has a suitable low-carbon option. The consultation is now closed. A government response will follow in due course.

The Government remains committed to supporting those households most affected and to addressing the rising costs linked to the ongoing conflict in Iran.

The Energy Secretary welcomes the Competition and Market Authority’s comprehensive examination of the heating oil industry to ensure customers are treated fairly. Wholesale prices for heating oil have risen more sharply than for LPG and concerns in the heating oil sector were raised immediately. The CMA will apply its person-centred, needs-based approach as appropriate, and its general operating principles extend to addressing any potential concerns in the LPG market. The Government will continue to monitor the situation and will not tolerate profiteering or unfair practices.

As part of the Chancellors announcement on 16 March, £53 million has been made available to assist low-income families facing rising fuel costs. Households using LPG will be eligible for the £27 million of this support available in England, which will be distributed by local authorities through the Crisis and Resilience Fund (CRF) from 1 April.

Price gouging will not be tolerated. That is why the Chancellor has written to the Competition and Markets Authority (CMA) to ask it to remain vigilant on heating oil prices and support action to tackle unjustified price increases.

Wholesale prices for heating oil have risen more sharply than for LPG and concerns in the heating oil sector were raised immediately. The CMA will apply its person-centred, needs-based approach as appropriate, and its general operating principles extend to addressing any potential concerns in the LPG market. The Government and the CMA will not hesitate to take action if companies are found to have breached consumer protection laws.

The Department continues to monitor the UK kerosene supply chain as part of its wider monitoring of the security of supply of fuels. The UK benefits from a diverse supply base, including domestic production and imports which are complimented by well‑established distribution networks.

While global market conditions can affect prices, the Government currently has no concerns with the supply of heating oil, and continues to monitor risks closely and engage with industry to ensure the continuity of supply is maintained. Airports maintain stocks of bunkered aviation fuel to support their resilience. We are continuing to monitor the situation with industry.

The Department of Energy Security and Net Zero closely monitors live fuel stock levels to ensure we have an accurate picture of the supply situation, and current indications show that petrol station forecourts across the UK remain well stocked. We also maintain regular engagement with industry, who confirm that the road fuel supply chain is operating across the UK as normal.

The Government does not measure stock levels at individual forecourts so localised concerns will not always show on our data. However, the government continues to liaise with industry to closely monitor the situation and will act should the situation require it.

The Department works closely with the International Energy Agency to monitor oil and gas markets, including risks arising from disruption around the Strait of Hormuz. The IEA has published a range of potential measures as advice to governments across the world. These are recommendations rather than requirements.

The Government has no current plans to implement the measures suggested and will continue to work with industry and international partners to safeguard energy security.

Information on the heating fuels used by households is published by the Office for National Statistics and the Devolved Administrations. For more information, please see here - Constituency data: Households off the gas grid - House of Commons Library

The Government has made £53 million of additional support available to help low-come households who use heating oil. In England this has been allocated to Local Authorities via the Crisis and Resilience Fund (CRF). Households should apply to their local authority and provide any evidence that is requested.

The scope and schedule of a Generic Design Assessment is set by the Requesting Party. By far the biggest influences on schedule, and hence cost, are the maturity and stability of the design, and the quality and timeliness of the Requesting Party’s submissions. Prior engagement with the UK regulators, and access to relevant information and judgements from overseas regulators are other notable factors in determining schedule and cost.

The Government assessed the implications of extending the UK Emissions Trading Scheme to domestic maritime through a published impact assessment. Analysis does not assess the impact on individual operators, as costs vary widely by fleet, route and commercial arrangements. However, to support policy development, case study analysis of specific routes was carried out, including Great Britain–Northern Ireland ferries. This showed that, even assuming full cost passthrough, the effect on passenger fares was minimal.

Compliance costs from the UK Emission Trading Scheme fall on ship operators, not passengers, and any fuel or ticket price changes are commercial decisions. Internal analysis, including route specific case studies, indicates final cost impacts on Great Britain–Northern Ireland voyages are minimal for passengers on key ferry routes and well under 1% for freight goods. These findings are consistent with international evidence showing only low single digit ticket price changes, not the larger increases suggested.

This policy has been developed jointly by the UK ETS Authority, which includes the Northern Ireland Department of Agriculture, Environment and Rural Affairs (DAERA). As with all Authority decisions, DAERA have an equal say on policy positions.

The Authority has conducted extensive consultation with stakeholders over the period between the first consultation in March 2022 and the response to the second consultation in November 2025.

Detailed consideration has been given to Northern Ireland’s specific circumstances, including the convening of several in-person and online engagement sessions with Northern Irish stakeholders, including Stena Line, Warrenpoint Port and B9 Energy Storage Ltd.

The Government has assessed the economic impact of bringing maritime activities into the UK Emissions Trading Scheme through the published Impact Assessment, which found a positive net present social value for the UK as a whole.

Independent analysis by Frontier Economics identified no material risk of carbon leakage, diversion of trade, or competitive distortion on Great Britain–Northern Ireland routes. Internal route specific case studies also show very small effects on final prices, with increases of under 1% for typical freight goods. Overall, the policy delivers emissions reductions and wider economic benefits in the most cost-effective way possible.

HMG has not provided any direct funding to the Welsh Government to support the participation of Natural Resources Wales (NRW) in the Generic Design Assessment (GDA) process. Regulatory costs for GDAs are borne by the Requesting Party (RP) of the GDA.

Natural Resources Wales (NRW) has participated in several previous and current Generic Design Assessments (GDAs):

• Hitachi - GE's ABWR
• GE-Hitachi’s BWRX-300
• Holtec Britain’s SMR-300
• Rolls Royce SMR.

NRW participation in future GDA processes is a matter for discussion between Requesting Parties (RPs) and NRW.

The ONR are currently undertaking two GDAs, step three of the Rolls Royce SMR and step two of the Holtec SMR-300. Publication of the completion dates for those processes is a matter for the regulators, including the ONR, and the Requesting Parties. These may be subject to change as the processes continue.

Further details on the Office for Nuclear Regulation’s (ONR) current and previous Generic Design Assessments (GDAs) can be found at https://www.onr.org.uk/generic-design-assessment/assessment-of-reactors.

Batteries aren’t mandated under the Future Homes and Buildings Standards because Building Regulations set performance‑based outcomes and do not mandate specific technologies. This ensures flexibility for developers and avoids locking in solutions that may not be suitable in every setting.

Battery storage is permitted and encouraged, and we continue to welcome ambitious developers who choose to go further than the minimum requirements.

I refer the hon. Member to the answer I gave to him on 23 March 2026 to Question UIN 121703 which provides the most recent data for the number of homes that use central heating oil in each Northern Ireland parliamentary constituency.

Fuel markets are governed by competition and consumer protection law, overseen by the Competition Market Authority (CMA). The Government and the CMA are closely monitoring petrol and diesel prices in light of instability in the Middle East, and the Chancellor and Secretary of State recently met with fuel retailers to set out a clear message: unfair practices will not be tolerated.

We are also engaging regularly with refiners, importers and distributors to ensure any emerging risks are identified and managed promptly. The UK benefits from strong and diverse security of energy supplies, and there are no issues with fuel supply.

Support for households dependent on heating oil is being delivered through the Crisis and Resilience Fund.

The Community Recovery Fund launched in September 2024 to support those communities impacted by the public disorder that took place between July and August 2024. The Community Recovery Fund will not be used support low-income oil heating households’.

All households that have a domestic electricity account, regardless of their heating type will benefit from the budget announced savings from moving 75% of the RO levy to the Exchequer. This will include the vast majority of heat network customers. We are currently considering eligibility for households on non-domestic energy contracts, and the Government will provide an update in due course.

In homes and buildings, a heat network is required to make use of deep geothermal heat. The Warm Homes Plan set out our support for low-carbon heat networks, including Heat Network Zoning and £1bn in investment over the course of this Parliament.

It is for heat network developers to select the heat sources for their network, and this may include deep geothermal where it can be proven to provide affordable low-carbon heat. There is limited evidence to indicate that deep geothermal heat could be delivered affordably across the UK.

The government is however supporting several new schemes and will monitor the progress of these schemes before taking any steps to change regulations for deep geothermal heat developments or support redeployment of skills.

In homes and buildings, a heat network is required to make use of deep geothermal heat. The Warm Homes Plan set out our support for low-carbon heat networks, including Heat Network Zoning and £1bn in investment over the course of this Parliament.

It is for heat network developers to select the heat sources for their network, and this may include deep geothermal where it can be proven to provide affordable low-carbon heat. There is limited evidence to indicate that deep geothermal heat could be delivered affordably across the UK.

The government is however supporting several new schemes and will monitor the progress of these schemes before taking any steps to change regulations for deep geothermal heat developments or support redeployment of skills.

As set out in the announcement we are working to make plug-in solar panels available in shops as quickly as possible.

Plug-in solar panels are not currently eligible for government grants or loans however we keep technology eligibility for government schemes under review.

As set out in the announcement we are working to make plug-in solar panels available in shops as quickly as possible.

Plug-in solar panels are not currently eligible for government grants or loans however we keep technology eligibility for government schemes under review.

The Prime Minister has condemned in the strongest terms the Iranian strikes on Gulf oil and gas facilities.

The UK benefits from a strong and diverse security of energy supplies, with only around 1% of the UK's gas supply coming from Qatar.

Thanks to the actions we took in the Budget, the price cap is fixed from 1 April until the end of June – meaning household energy bills will go down for its three-month duration. As Ofgem have said, it is “genuinely it is too early to tell” the impact of this conflict on the next price cap.

The biggest threat to energy security for families and businesses in the UK is continued reliance on unstable fossil fuel markets. That is why we’re taking back control with clean, homegrown power to ensure our energy security, protect the British people and bring down bills for good.

DESNZ officials are working across government and with industry to understand the role low carbon ammonia could play in the UK’s future energy security.

Government recognises that ammonia could play an important role for the transport, storage and

trade of hydrogen, especially for hydrogen users with limited access to networks.

Ammonia based chemical storage for cracking hydrogen was assessed to have a low technology readiness and is not eligible for the first round of the Hydrogen Storage Business Model (HSBM), which will support large scale geological storage of hydrogen as part of the UK’s first regional hydrogen network, aimed at decarbonising industry and providing flexible power generation.

Government continues to review developments and welcomes evidence from industry on ammonia.

The Hydrogen Production Business Model provides revenue support to selected low carbon hydrogen producers who may sell that hydrogen for a variety of applications including as a feedstock for the production of ammonia.

The Government’s Hydrogen to Power business model is currently focused on delivery of the first regional network where wider infrastructure is supporting hydrogen. We want to ensure integration into the wider hydrogen value chain to ensure the business model provides dispatchable power to the energy system. We will keep the eligibility of ammonia and other hydrogen derivates under review.

In 2023, the Department co-funded a study with the Northeast Local Enterprise Partnership on the UK’s deep geothermal potential. This outlines the opportunities and benefits of deep Geothermal energy in the UK, including how it can aid with the North Sea transition and levelling up on the North-East coast.

In 2023, the Department co-funded a study with the Northeast Local Enterprise Partnership on the UK’s deep geothermal potential. Further research on the levelised costs of geothermal heat and power was published in summer 2025. Based on this evidence, the British Geological Survey was commissioned to develop the UK Geothermal Platform—an open-access, web-based tool which launched in 2025 to help developers and investors identify geothermal opportunities and conduct pre-feasibility assessments.

Ammonia can serve as an essential feedstock across a wide range of industrial applications and could support decarbonisation in hard-to-electrify transport sectors, such as maritime. Ammonia can also be used as a ‘hydrogen carrier’ to store, transport and trade hydrogen.

However, the scale of future UK demand for ammonia is uncertain, with a key factor being the decarbonisation pathways chosen by sectors such as maritime. We will continue to review emerging evidence on UK supply and demand for ammonia and will consider the development of any further appropriate policy measures as needed.

In homes and buildings, a heat network is required to make use of deep geothermal heat. The Warm Homes Plan set out our support for low-carbon heat networks, including Heat Network Zoning and £1bn in investment over the course of this Parliament. It is for heat network developers to select the best heat sources for their network, and this may include deep geothermal where it can provide affordable low-carbon heat for consumers.

The Department’s energy and emissions projections include growth in power demand from computing services like data centres. To ensure a comprehensive view of the system, the methodology projects at a broader sector level, not disaggregating specific estimates for data centres.

The Government is committed to ensuring electricity networks can meet rising electricity demand, including from data centres, by deploying new renewable and low-carbon generation in line with the Clean Power 2030 Action Plan. The Capacity Market ensures supply continuously meets demand, balancing cost and reliability to maintain adequate electricity security.

Ammonia can serve as an essential feedstock across a wide range of industrial applications and could support decarbonisation in hard-to-electrify transport sectors, such as maritime.  Ammonia can also be used as a ‘hydrogen carrier’ to store, transport and trade hydrogen.' We do not have plans currently to create a standard for ammonia, given our primary focus on hydrogen production. However, we will continue to review emerging evidence on UK supply and demand for ammonia and will consider the development of any further appropriate policy measures as needed.

The Neighbourhoods Fund, now known as the Pride in Place Programme, sits under the Secretary of State for Housing, Communities and Local Government, who is best placed to respond on eligibility. Heat networks can deliver local benefits by producing heat and electricity locally, aiming to provide the lowest-cost and lowest‑carbon solutions. The Government has launched the Pride in Place Programme, committing up to £5.8bn over ten years to support 284 places and underpin community investment. In each area, a Neighbourhood Board, supported by local authorities and MPs, will decide how funding is used, selecting projects aligned with local priorities and programme guidance.

The Department works closely with counterpart ministries to develop and maintain a range of ongoing partnerships that help advance our Clean Power 2030 Mission and wider priorities including the Growth Mission.

We have signed a range of non-legally binding partnerships and Memoranda of Understanding (MoUs) since July 2024. These are not routinely published or notified to Parliament, in line with HMG policy on non- legally binding instruments.

Across the energy system we are working to deliver new jobs in the clean energy transition and support those working in oil and gas to take up these opportunities. As part of our North Sea Future Plan we announced a North Sea Jobs Service will be launched which will support workers to retrain and find opportunities for future employment. Deep geothermal heat projects could benefit from these skilled workers.

There are currently approximately 7,400 petrol filling stations (PFSs) registered with Fuel Finder (approximately 90% of UK PFSs). Over 80% of UK PFSs have updated at least one price within the past week.

The Competition and Markets Authority (CMA) is responsible for enforcing Fuel Finder, but has confirmed that until at least May 2026, its focus will be on supporting retailers to comply, rather than enforcement.