Asked by: Lord Strathcarron (Non-affiliated - Excepted Hereditary)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government how they arrived at the estimate in the Clean Energy Campaign that it costs approximately £2,000 a year to heat a typical three-bedroom house with a gas boiler; and what assessment they have made of the accuracy of Ofgem’s estimate of the cost of heating a typical three-bedroom house with a gas boiler.
Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)
The cost estimates used in the Clean Energy Campaign are based on the total energy for a home with a gas boiler including both gas and electricity costs (e.g. for lighting and appliances). Details for the assumptions behind the analysis are provided in the section marked “*How we calculated heat pump savings” on the campaign web page https://cleanenergy.campaign.gov.uk/heat-pump/. The analysis in the campaign assumed an annual gas demand of 12,200kWh, which is well aligned to OFGEM’s ‘Medium’ typical domestic consumption value of 11,500kWh.
Asked by: Lord Strathcarron (Non-affiliated - Excepted Hereditary)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government why the cost of upgrading the electricity grid is estimated at £60 billion in the report Clean Power 2030, published on 5 November 2024 by the National Energy System Operator, and at £80 billion in the Ofgem press release on 1 July about initial investment in energy security; and whether they will update their costing.
Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)
The £80bn cost estimate in Ofgem’s Draft Determinations for RIIO ET3, which covers 2026/27 to 2030/31, is not exclusively spending required to deliver the transmission network needed to deliver 2030 Clean Power, but also takes into account wider operational costs such as maintenance of existing assets, and includes some spend beyond 2030. Ofgem and NESO regularly review and update their cost estimates for electricity networks.