Department for Energy Security & Net Zero

From April, households will benefit from reduction energy bills thanks to the action that the Government took in the Budget, with the price cap falling by £117, giving households certainty on their bills until July.

The government have also announced £53 million for low-income families, who heat their homes with oil to help tackle surging prices. Funding is being delivered by local authorities through the Crisis and Resilience Fund.

They may also be eligible for support such as the Warm Home Discount and I would urge anyone in such a challenging situation to contact their energy supplier or Citizens Advice to see what further support is available. Vulnerable consumers who need extra support are also able to sign up for the Priority Services Register for free.

Marginal pricing incentivises the cheapest sources of energy production to provide as much power as possible, more expensive producers are only used when it is necessary to meet demand.

The real problem is that we rely too much on volatile fossil fuels – and the solution is our clean power mission: upgrading our grid while accelerating the rollout of clean, homegrown energy, so the price of electricity is instead set by clean power that we control.

Every wind turbine we switch on and solar panel we deploy helps reduce our exposure to volatile fossil fuel markets.

The total number of free allowances distributed under the UK Emissions Trading Scheme (UK ETS) in each of the last three years was as follows:

2024: 30,823,937

2025: 25,451,671

2026: 24,107,382

This information is publicly available on GOV.UK at UK ETS Allocation Table for operators of installations - GOV.UK.

Numbers on Performance Management Plans:

• 2024: Managing Poor Performance = 28, Performance Management = 2

• 2025: Managing Poor Performance = 20, Performance Management = 0

DESNZ was not created until February 2023, so figures are not available before this time.

There were

(a) Five or fewer* civil servants were found to have broken the Civil Service Code in 2024.

(b) Eight civil servants were found to have broken the Civil Service Code in 2025.

*Volumes which are five or fewer have been redacted to avoid potential identification of individuals.

The Department has taken action to improve the oversight and quality of installations in the current system. This includes increased oversight of TrustMark, tighter certification rules limiting installers to one PAS 2030 certification per measure and updated PAS 2035/2030:2023 standards mandating site visits and higher professional qualifications.

We are committed to reforming the consumer protection system, as set out in the Warm Homes Plan. We will consult this year on options for bringing the oversight of energy efficiency and microgeneration installations for government schemes under closer government control.

The Competition and Markets Authority (CMA) recent annual report found that competition has not strengthened since 2023, which was consistent with significant price variations within and between local areas.

Fuel Finder is now live, with all petrol filling stations in the UK required to publish their latest prices. Increasing price transparency will increase pressure on fuel retailers to compete strongly to attract consumers by lowering their prices, including at a local level.

The CMA will continue to monitor the road fuel market using statutory information gathering powers and will use Fuel Finder data to further assess regional pricing.

Reformed Energy Performance Certificates will assess properties’ energy performance against several metrics, one of which is fabric performance. The new minimum energy efficiency standards will require private rented homes to first meet a ‘C’ rating for fabric performance unless a relevant exemption is in place. The prioritisation of fabric measures will help ensure a reduction in heat demand, delivering bill savings for tenants and lifting households out of fuel poverty.

Grid-scale storage helps to balance the electricity system at lower cost, maximise the output from intermittent low carbon generation, and provide electricity security.

The Clean Power 2030 Action Plan sets out ambitions for 23-27 GW of grid-scale batteries and 4-6GW of long duration electricity storage (LDES) by 2030. Batteries enable us to manage intraday variability, and LDES technologies enable us to cover multi‑hour to multi‑day energy deficits.

The goal of delivering a 75% reduction in emissions from public sector buildings by 2037 compared to a 2017 baseline was a target set by the previous Government.

Direct emissions from public sector buildings in the UK were 8.6 MtCO2e in 2017 and 8.8 MtCO2e in 2025 (provisional statistics).

Since 2020 the Public Sector Decarbonisation Scheme has supported, and continues to support, over 1,400 projects to help public sector organisations decarbonise their estates, with funding allocated up until 2028.

The Government recognises that good retrofit design is essential to high-quality home upgrades. The Warm Homes Plan takes a whole-house approach, supporting packages of measures including clean heat, solar, batteries and insulation, according to what is most appropriate and cost-effective for each property.

Product designers and installers will take architecture into account. The Government is also supporting improved skills, standards, and oversight across the sector to drive better outcomes for households and reduce bills.

The number of businesses that received free allowances under the UK Emissions Trading Scheme (UK ETS) in each of the last three years was as follows:

2024: 284

2025: 273

2026: 265

Note that the Allocation Table lists the company that operated each site at the time the table was last updated, rather than when the free allowances for a given year were distributed, so the figures above should be treated as approximate for 2024 and 2025.

This information is publicly available on GOV.UK at UK ETS Allocation Table for operators of installations - GOV.UK.

Through our Clean Power 2030 mission, we are reducing dependency on volatile global fossil fuel markets and delivering a diverse, secure and clean energy system based on renewables and nuclear, backed by a supply of gas.

Our work to date - reforming the connections queue, taking a clear decision on REMA and publishing roadmaps for key technologies like Solar and Clean Flexibility - has given a clear signal to industry. And we have now delivered the most successful renewables auction in history, with AR7 securing a record-breaking 8.4 gigawatts of offshore wind, which will power the equivalent of around 12m homes.

The ETS Authority, made up of the four governments work together for the implementation and ongoing maintenance of the UK ETS. There is regular dialogue between DESNZ and the Northern Ireland Department of Agriculture, Environment and Rural Affairs (DAERA) on ETS matters, including on maritime.

DAERA officials provide advice on ETS matters to the NI Executive and DAERA Ministers.

Electricity, including that generated from nuclear, is traded both nationally and internationally and is not constrained to geographical areas. No estimate has been made of the contribution of nuclear generation to Scotland’s demand.

Data on Scotland’s annual electricity demand and generation are published in the UK Energy Trends article: Energy Trends: December 2025, special feature article - Electricity generation and supply in Scotland, Wales, Northern Ireland and England, 2020 to 2024 - GOV.UK

Changing indexation of the Feed‑in Tariffs scheme from RPI to CPI is estimated to reduce average revenue for a generator remaining on the scheme until 2036/37 by around 4.2%, compared with a scenario where indexation is unchanged. Generators that exit the scheme earlier would experience a smaller average impact. The available data does not allow for analysis on specific groups of generators such as community energy schemes. An analytical annex, including an assessment of the potential impacts of this policy, was published alongside the government response.

Our ambition is to ensure that clean heat is the most attractive and natural option for people when upgrading or replacing their heating system. That means driving down upfront costs, helping with financing and grants, and ensuring everyone can reap the financial benefits with cheaper electricity and smart tariffs.

The recent Budget took unprecedented steps to drive down electricity costs for all households, while those with electric heating stand to benefit most.

The Department for Energy Security and Net Zero and the Ministry of Defence carried out in-depth analysis of the UK’s offshore wind pipeline to understand which offshore wind farms had radar dependencies and would be unlocked by an upgraded air defence radar system that protects both national security and energy security. The 10 GW of offshore wind capacity unlocked consists of relevant projects successful at Contracts for Difference Allocation Round 7 and others that will support the Government’s clean power mission which are at varying stages of development.

Citizens Advice is not a Government body but a network of independent registered charities. DESNZ therefore does not hold the requested information.

The Department for Energy Security and Net Zero (DESNZ) and the Ministry of Defence (MOD) will continue to work closely to ensure that proposed wind farms can operate at their design capacity and for which MOD consent has been granted. Any necessary contingency measures are incorporated within the bilateral agreements between the MOD and offshore wind developers. Ongoing collaboration between DESNZ, MOD, and developers, provides robust oversight of the overall delivery of offshore wind capacity, with the radar upgrades forming a key part of the wider enabling infrastructure to facilitate increased offshore wind deployment.

The Department for Energy Security and Net Zero (DESNZ) and the Ministry of Defence (MOD) will continue to work closely to ensure that proposed wind farms can operate at their design capacity and for which MOD consent has been granted. Any necessary contingency measures are incorporated within the bilateral agreements between the MOD and offshore wind developers. Ongoing collaboration between DESNZ, MOD, and developers, provides robust oversight of the overall delivery of offshore wind capacity, with the radar upgrades forming a key part of the wider enabling infrastructure to facilitate increased offshore wind deployment.

The UK and EU agreed to work towards linking their respective emissions trading schemes at the May 2025 Summit and linking negotiations to that end are underway.

The EU Emissions Trading System is undergoing review currently and proposals emanating from that review are expected to be issued this summer.

The Public Sector Decarbonisation Scheme is supporting public sector organisations in England to install low carbon heating and energy efficiency measures across their estates up until 2028. The Department is also working with the National Infrastructure and Service Transformation Authority (NISTA), which is leading cross-Whitehall work on the potential role for private finance to support public sector decarbonisation.

Through the Boiler Upgrade Scheme, commercial, public and voluntary sector buildings can receive £7,500 for heat pumps and £5,000 for biomass boilers. The Department also helps fund the UK Business Climate Hub, an online resource supporting SMEs identify and implement changes to their energy use.

The department also consulted strengthening non-domestic minimum energy efficiency standards to EPC B and will publish its government response in due course.

Batteries help balance the electricity system at lower cost and maximise the output from intermittent renewable generation, which helps reduce our reliance on gas and thus international energy markets.

As of March 2027, there is 7.2GW of grid-scale battery storage on the GB grid. S The Clean Power 2030 Action Plan set out an ambition for 23-27 GW of grid-scale batteries connected by 2030. We are therefore already making significant strides towards reducing our dependence on gas.

The Deed of Obligation was agreed between Suffolk Council, East Suffolk Council, and NNB Generating Company (SZC) Limited in October 2021. It sets out mitigation measures to reduce the impact of the development and operation of Sizewell C within each Councils boundary and is reflected in Requirements within the Development Consent Order. We are not aware of any review of the mitigation package in the light of increased project costs. Any application to change the Orders Requirements would need to be approved by the Secretary of State.

The Department recognises requests to take steps to better enable local energy markets and trading to lower bills and increase the resilience of the electricity networks. The Department is investigating barriers to local supply and is working with Ofgem, Great British Energy and relevant stakeholders to find solutions that work in the best interests of local generators and consumers.

The Department is also actively exploring policy options that will unlock Smart Local Energy Systems, including working with Innovate UK, local government and communities to develop opportunities for place‑based approaches.

Ofgem and Elexon’s work on code modifications, like P441, will help more community energy groups identify and understand the different routes to market in order to sell their energy. Industry feedback informed the Draft Modification Report considered by the Panel on the 12 March leading to the Final Modification Report submitted to Ofgem on the 17 March.

The latest annual fuel poverty statistics estimate that around 873,000 households in England were in fuel poverty in 2025 and lived in properties with under 125 mm of loft insulation, equivalent to a fuel poverty rate of 13.3% for this group. This compares with a rate of fuel poverty of around 7.8% (1.17 million households) among households with 125 mm or more of loft insulation, and 9% (316,000 households) among households where loft insulation is not applicable.

These estimates are produced under the Low Income Low Energy Efficiency (LILEE) metric and are published in Table 17 of the Fuel poverty detailed tables 2026 (2025 data).

The Warm Homes Plan will cut bills, with an offer for every household, whether they own their home, rent privately, or live in social housing. We will reach up to five million homes by 2030, through direct support for those on low incomes and in fuel poverty, grants and innovative low-interest finance available to all.

The Warm Homes: Local Grant is accessible to those living in privately rented accommodation, subject to eligibility. We are also standing up for renters through our new minimum energy efficiency standards in the private and social rented sectors, which will lift around 650,000 households out of fuel poverty.

From 1 October 2030, private rented homes must meet the required standard, or have a valid exemption registered in order to be let.

The Warm Homes Plan will cut bills, with an offer for every household, whether they own their home, rent privately, or live in social housing. We will reach up to five million homes by 2030, through direct support for those on low incomes and in fuel poverty, grants and innovative low-interest finance available to all.

The Warm Homes: Local Grant is accessible to those living in privately rented accommodation, subject to eligibility. We are also standing up for renters through our new minimum energy efficiency standards in the private and social rented sectors, which will lift around 650,000 households out of fuel poverty.

From 1 October 2030, private rented homes must meet the required standard, or have a valid exemption registered in order to be let.

In line with normal procedure under the 2008 Planning Act, the Planning Inspectorate Examining Authority’s report and recommendation of the proposed Botley West Solar Farm will be published after the conclusion of the decision-making phase of the development consent process.

Once the decision has been taken, the report and its recommendation will then be published alongside the Secretary of State’s decision documentation on the Planning Inspectorate website.

Under Section 53 of the Planning Act 2008, the Secretary of State may require further information from an applicant where this is considered necessary to inform the planning decision.

Given the Secretary of State’s quasi-judicial role in taking decisions on applications for development consent for energy infrastructure proposals, it would not be appropriate for a Minister in this department to comment on specific matters related to the proposals, as this could be seen as prejudicing the decision-making process. All requests for further information, and responses to those requests, will be published on the Planning Inspectorate website for this case in the usual way.

Policy teams within the department are responsible for ensuring effective legislative practice within their area, including uncommenced legislation and considering when to bring forward commencement orders. Where needed, they draw on advice of legal professionals and our central legislative functions to support their delivery.

We set out our long-term strategy for heat networks in the Warm Homes Plan, including our target for heat networks to supply 7% of heat demand by 2035, on a path towards meeting a fifth of demand by 2050.

This ambition is based on the heat network zoning model, which will use a standardised methodology to identify areas where heat networks are expected to provide the lowest cost, low carbon heat to buildings.

Policies such as strategic heat network zoning will help to inform the design of the future gas system, including any repurposing or decommissioning that takes place.

We became a net importer of energy in 2004. Given the maturity of the basin, and the high proportion of future production projected to come from existing developments versus new developments and discoveries, further licensing in the North Sea would not reverse the basin’s natural decline.

We announced in the Autumn Budget that we would cut the cost of living, and as a result, the price cap fell by 7% / £117 to £1,641 per year for an average dual fuel customer paying by Direct Debit.

This action follows the decision to expand the Warm Home Discount this winter, which will see around six million households receive an additional £150 off their energy bills.

The Heat Network Efficiency Scheme (HNES), which provides grants to heat networks to carry out performance and efficiency improvement works, has the potential to provide some funding to networks for works that will bring them up to HNTAS standards.

We are currently consulting on the implementation of HNTAS, and are actively encouraging the sector to provide cost data through the consultation, so we can strengthen our evidence base on financial support that may be required and ensure the final policy is proportionate and deliverable.

The Government closely follows developments in the agrivoltaics sector, and supports innovative technologies, including through initiatives funded by UK Research and Innovation. In the Solar Roadmap, Government and industry committed to explore future research and demonstration opportunities for agrivoltaic systems.

Although the technology is fairly nascent in the UK, the Government believes that it can play an important role in the decarbonisation of agriculture (for example, where panels are arranged around a field). The technology also has the potential to ensure that land is used efficiently, by maximising agricultural output on land devoted to solar generation.

The North Sea Transition Authority (NSTA) published analysis in September 2025 comparing the emissions intensity of domestically produced gas with imported liquefied natural gas. This analysis is available on the NSTA’s website. In 2024, domestic gas production made up 43% of gross supply, LNG imports accounted for 14%, with the remainder coming from pipeline imports – principally from Norway.

The North Sea Transition Authority (NSTA) published analysis in September 2025 comparing the emissions intensity of domestically produced gas with imported liquefied natural gas. This analysis is available on the NSTA’s website. In 2024, domestic gas production made up 43% of gross supply, LNG imports accounted for 14%, with the remainder coming from pipeline imports – principally from Norway.

Ofgem took on responsibility for regulating heat networks in January, and Ministers have been engaging regularly with Ofgem on how their role will develop.

Under current Ofgem rules, heat networks have a requirement to set fair and transparent prices. Whilst Ofgem have consulted on bench marking proposals in relation to these rules, they do not set the prices heat networks charge and heat networks are not governed by the energy price cap or regulated under Ofgem's network price control framework.

The government aims to ensure our oil and gas workers and supply chain can take advantage of our energy transition, creating a global blueprint for a transition that supports prosperity, jobs, economic growth, communities and energy security.

In the North Sea Future Plan, the government committed to develop support for supply chain businesses, investors, and workers to help them benefit from a pipeline of projects across the North Sea and in the UK’s energy future. We are also developing a world-class North Sea Jobs Service to provide end-to-end support for oil and gas workers to move into growing industries.

We set out our long-term strategy for heat networks in the Warm Homes Plan, including our target for heat networks to supply 7% of heat demand by 2035, on a path towards meeting a fifth of demand by 2050. We estimate that delivering this ambition will result in 18,000 jobs supported in 2030, and attract £60 billion of investment in the UK by 2050.

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

Park home residents may be eligible for support with home upgrades through the Warm Homes: Local Grant. Additionally, all eligible households in England and Wales can benefit from the expanded Boiler Upgrade Scheme, funded with £2.7 billion to 2030.

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.

The Government recognises that families and businesses across the country will see the recent global events and once again be concerned about the impact on their energy bills. We continue to monitor the situation closely and we are looking at what further support may be needed.

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 Government understands that many households, particularly in rural and off gas grid areas, rely on heating oil as their primary source of heat. DESNZ is working closely with other Government Departments on the National Data Library (NDL) energy bill support ‘Kickstarter’ project to test how public sector data can be better joined up to improve access to Government programmes.

The Kickstarter project will pave the way for better targeted help, ensuring those who are struggling to pay their bills get the support they need.