Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the reliability of renewable energy, following reports that Britain's winter wind farm output is at its lowest level since 2015.
Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)
Wind power is a variable energy source, which is why it would never be the single source of energy generation in the UK. Instead, it is used alongside other forms of energy generation to create a reliable mix. Whilst wind is variable, it is also predictable. The National Energy System Operator monitors weather data and is able to plan for higher or lower power generation from wind turbines.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of whether net-zero targets could negatively affect business growth, particularly in relation to the artificial intelligence sector.
Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)
Accelerating to net zero will unlock a range of benefits for businesses, including market opportunities and access to green finance. Government will work with the business community to support their transition to net zero. With the majority of global GDP covered by net zero targets, the transition represents a significant export opportunity for UK businesses.
AI is at the forefront of geopolitical competition, so developing domestic strengths can enhance UK security and prosperity, and we are committed to supporting the growth of the sector. Lowering electricity costs by investing in clean energy will support industries with high demand, such as AI.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what steps they are taking to ensure sufficient energy availability in the wake of increased artificial intelligence use.
Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)
The Department for Energy Security and Net Zero has contracted European Economic Research Limited to analyse the future net energy demand of AI, with the project being due to be completed by April 2025. The National Electricity System Operator (NESO) is investigating the future power consumption of data centres, as well as grid constraints, lead times for developers, and how to improve connection processes.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the role of nuclear energy in supporting an increase in the use of artificial intelligence.
Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)
We have watched with interest the deals struck in the US to use new nuclear power for the increasing demand for low-carbon, reliable energy to support the potential expansion of the data centres required for artificial intelligence. In the UK, nuclear remains a key part of the energy mix. The Government is committed to working with industry to support potential projects.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the impact of the energy price cap increase on pensioners.
Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)
The Government is working closely with Ofgem to ensure consumers are put first. My Hon. Friend the Minister for Energy Consumers meets regularly with energy suppliers to outline the Government’s expectations of the standard of service that should be provided to their customers. The impact of the energy crisis is still being felt by people across the country, and the Government, Ofgem and energy suppliers are working together closely to help vulnerable households this winter.
In November Energy UK, in collaboration with the Government, published a Winter 2024 Commitment for this winter which promises £500m of industry support to billpayers this winter. It also outlines how fifteen energy suppliers representing almost the entire market will continue to provide a range of financial support tailored to the needs of their customers.
Together with our Warm Home Discount, households who are struggling to pay their energy bills this winter will receive £1 billion of support.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what steps they are taking to protect vulnerable consumers from energy price increases.
Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)
In the short-term, we are continuing to deliver the Warm Home Discount which provides an annual £150 rebate off energy bills for eligible low-income households. The Government and industry have worked together to deliver a £500m Winter Support Commitment for customers, and we applaud suppliers stepping up on this matter.
Our Warm Homes Plan will transform homes across the country by making them cheaper and cleaner to run, rolling out upgrades from new insulation to solar and heat pumps. Next year will see a total investment of £3.2bn from government, social housing providers and obligations on suppliers.
We will continue to provide substantial funding to Local Authorities to support those most in need. At the Autumn Budget 2024, the Government announced that £1 billion, including Barnett impact, will be invested to extend the Household Support Fund (HSF) in England by a full year until 31 March 2026, and to maintain Discretionary Housing Payments in England and Wales.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what steps they are taking to assist homeowners in retrofitting their homes to become more energy efficient.
Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)
As the first step towards the Warm Homes Plan, the Government has committed an initial £3.4 billion over the next 3 years towards heat decarbonisation and household energy efficiency, with £1bn of this allocated to next year. Additional funding will be considered in Phase 2 of the Spending Review, as the Warm Homes Plan is further developed.
In addition to the £3.4 billion of direct capital spend, the Government is ensuring continued further investment of up to £1.4bn through the supplier obligation schemes in 2025/26: the Energy Company Obligation (ECO4) and Great British Insulation Scheme (GBIS) which we are now reforming to improve delivery and ensure consumers save more on their energy bills.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the impact of regional disparities in the use of smart meters.
Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)
There are different levels of smart meter penetration across Great Britain. The Department collects and publishes annual statistics on electricity smart meter installation progress at a regional level.
The latest regional statistics show that at the end of March 2024, 64% of domestic electricity meters across Great Britain were smart.
Local Authorities with the highest number of smart meters (74% - 75%) are in the East Midlands, North East, and Yorkshire and The Humber. London and Scotland have experienced slower progress to date, where 54% and 51% of meters were smart respectively.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the risks associated with importing electricity from Europe.
Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)
Electricity imports enhance security of supply by providing access to a more diverse generation pool that complements our domestic energy mix. They provide system flexibility by responding to changes in supply and demand, which is vital as we continue to integrate more renewable energy sources with intermittent generation.
In their Winter Outlook, the National Energy System Operator expects full interconnector availability for most of this winter, with 6.6GW of capacity obliged to import if needed through the Capacity Market. This is up 1.5GW from last winter and underpinned by comprehensive legal and treaty protections to ensure the market remains open.
Winter Outlook | National Energy System Operator
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what steps they are taking to reduce gas prices for consumers, particularly in relation to (1) high transmission costs, and (2) limited storage capacity.
Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)
The Government is committed to transforming Britain into a clean energy superpower and is working closely with Ofgem; to ensure energy is fair and affordable for consumers now and in the future.
Ofgem already regulate the cost of the transmission network, which safely and efficiently transports gas across GB, and under the current price cap represents an average annual cost of £7 per consumer.
Capacity of GB’s gas storage is not regulated by Ofgem however analysis published the Energy Security Plan Update in December 2023 shows we have sufficient and flexible gas storage to meet peak gas demand on any given day.