Alan Whitehead

Boston Consulting Group is providing pro-bono strategic project support to the COP26 Unit.

The smart metering Targets Framework sets energy suppliers annual, individual minimum installation targets over a four-year period and is driving the momentum of the rollout.

Ofgem is responsible for regulating and enforcing energy suppliers against their minimum installation targets.

The Government will consider whether further measures are needed after 2025 in addition to the existing smart metering New and Replacement Obligation to maximise the benefits of the rollout beyond the end of the four-year Framework.

The smart meter rollout continues to unlock energy system flexibility which is forecast to reduce system costs by up to £10bn a year by 2050.

The smart metering Targets Framework sets energy suppliers annual, individual minimum installation targets over a four-year period and is driving the momentum of the rollout.

Ofgem is responsible for regulating and enforcing energy suppliers against their minimum installation targets.

The Government will consider whether further measures are needed after 2025 in addition to the existing smart metering New and Replacement Obligation to maximise the benefits of the rollout beyond the end of the four-year Framework.

The smart meter rollout continues to unlock energy system flexibility which is forecast to reduce system costs by up to £10bn a year by 2050.

The smart metering Targets Framework sets energy suppliers annual, individual minimum installation targets over a four-year period and is driving the momentum of the rollout.

Ofgem is responsible for regulating and enforcing energy suppliers against their minimum installation targets.

The Government will consider whether further measures are needed after 2025 in addition to the existing smart metering New and Replacement Obligation to maximise the benefits of the rollout beyond the end of the four-year Framework.

The smart meter rollout continues to unlock energy system flexibility which is forecast to reduce system costs by up to £10bn a year by 2050.

Any policy decision on transmission blending will be determined by economic and safety assessments and wider strategic considerations. Additional considerations associated with transmission level blending include the impact of blends and/or varying blend rates on industrial end users connected at transmission-level. Government will also need to consider the blending plans of countries that we share interconnectors with.

Yes the Government is committed to the ambitions set out in the UK Hydrogen Strategy.

Government has not made such an estimate, which would depend on variables such as size of heat pump, power of electric vehicle charge point and existing supply capacity, where comprehensive data is not available. Domestic supplies can be upgraded if required, for example by installing a larger fuse, and the use of smart energy management solutions such as electric vehicle smart charging can also help reduce the maximum demand of a property to facilitate the installation, and use, of low carbon technologies.

Government is currently undertaking the next phase of policy development to assess what policy approach is best suited to enable investment in Large-scale, Long-duration Electricity Storage (LLES) projects. Government have been assessing a range of potential interventions, including cap and floor mechanisms, and their suitability to enable investment in LLES. Government anticipates further consultation with stakeholders later this year.

Yes. As per the answer to Question 188651 on 13^th June and In Powering Up Britain, the Government committed to put in place an appropriate framework by 2024 to enable investment in large scale long duration electricity storage (LLES), with the goal of deploying sufficient storage capacity to balance the overall system. We are currently undertaking the next phase of policy development to assess what policy approach is best suited to enable investment in LLES projects and anticipate further consultation with stakeholders later this year.

The Government assessed and consulted in August 2022 on options for the business model to deploy power Bioenergy Carbon Capture and Storage (‘BECCS’). A response was published in March 2023. The preferred approach for the business model was confirmed as being the ‘Dual CfD’, consisting of a ‘CfDe’ which values the electricity generated and a ‘CfDc’ which values the carbon stored and associated negative emissions. The UK ETS Authority has announced its intention to include engineered removals in the UK ETS, to incentivise investment and support deployment of these technologies. These technologies could include those within scope of the power BECCS business model. The Authority aims to carry out a further consultation in 2023.

The Government aims to make a policy decision on whether to blend hydrogen into the existing gas distribution networks in 2023, subject to the outcomes from ongoing economic and safety assessments and strategic considerations, including potential impacts on hydrogen production and the wider energy system. The initial 2023 policy decision will consider distribution-level blending only. The Government will assess the case for blending at transmission-level, which may be subject to a separate policy decision at a later date. There are additional considerations associated with transmission level blending that will be factored in as part of the assessment.

The Government aims to make a policy decision on whether to blend hydrogen into the existing gas distribution networks in 2023, subject to the outcomes from ongoing economic and safety assessments and strategic considerations, including potential impacts on hydrogen production and the wider energy system. The initial 2023 policy decision will consider distribution-level blending only. The Government will assess the case for blending at transmission-level, which may be subject to a separate policy decision at a later date. There are additional considerations associated with transmission level blending that will be factored in as part of the assessment.

The Government aims to make a policy decision on whether to blend hydrogen into the existing gas distribution networks in 2023, subject to the outcomes from ongoing economic and safety assessments and strategic considerations, including potential impacts on hydrogen production and the wider energy system. The initial 2023 policy decision will consider distribution-level blending only. The Government will assess the case for blending at transmission-level, which may be subject to a separate policy decision at a later date. There are additional considerations associated with transmission level blending that will be factored in as part of the assessment.

The Energy Efficiency Taskforce is working through its ideas and a specific publication date for their action plan will follow. Progress is published at: https://www.gov.uk/government/groups/energy-efficiency-taskforce

As outlined in the Powering Up Britain and British Energy Security Strategy we will put in place an appropriate framework by 2024 to enable investment in large scale long duration electricity storage (LLES), with the goal of deploying sufficient storage capacity to balance the overall system. We are currently undertaking the next phase of policy development to assess what policy approach is best suited to enable investment in LLES projects and anticipate further consultation with stakeholders later this year.

The Government plans to engage with key stakeholders across the sectors of hydrogen, power, industry and greenhouse gas removals. The Government will use this engagement to help develop its vision for the CCUS sector in the 2030s and there are plans to set out the vision later this year.

The Government has announced plans to expand Track-1 through the Track-1 expansion process and has commenced Track-2.

The Government recognises the importance of improving visibility for investors, and will set out a vision for the CCUS sector that will support the UK's net zero ambitions and raise investor confidence.

As per the recent NAO report, the latest estimate is that there will be an overall net cost of £240m: https://www.nao.org.uk/reports/investigation-into-bulb-energy/.

This estimate will be updated in due course once wholesale energy costs are fully reconciled.

As acknowledged in the recent Green Finance Strategy, heat networks will require significant private sector finance to help deliver decarbonised heating. The Department for Energy Security & Net Zero is engaging with both the public and private sectors to encourage private investment into the market. This includes policies such as heat network zoning and market regulation to improve the investment environment for heat network investors, publicising the pipeline of heat network projects which currently stands at £2.2 billion, and working with the UK Investment Bank to encourage private sector funding into the development of local authority led heat networks.

As announced in December 2021, the Department’s work on carbon content in energy products was paused to prioritise activity related to the global increases in gas prices.

As described in the March 2023 Energy Security Plan, reform is now necessary so that the retail market drives the transition to a secure, low-cost and low-carbon energy system. A summer 2023 Call for Evidence will examine how the regulatory framework can help deliver this vision.

The Review of Electricity Market Arrangements (REMA) programme is also exploring reforms to ensure that Britain’s electricity (non-retail) market arrangements harness the benefits of cheap, abundant renewables.

The Energy Company Obligation (ECO) scheme has been one of the Government’s key domestic energy efficiency policies, improving 2.4 million homes since it began in 2013.

Since it commenced, ECO4 has seen the delivery of an estimated 43,600 measures as per the most recent published Household Energy Efficiency Statistics, which can be found at: https://www.gov.uk/government/statistics/household-energy-efficiency-statistics-headline-release-february-2023.

The Green Gas Support Scheme (GGSS) Mid-Scheme Review Consultation, published on 23 March 2023, sets out a proposal to extend the GGSS scheme to 31 March 2026, and seeks views on this. The Government expects this proposed extension to help address delays resulting from challenges securing waste, and to mitigate supply chain issues.

The Office for Budget Responsibility’s (OBR) figure has been forecast in accordance with usual processes. The OBR’s figures are a snapshot of Government’s potential financial exposure as per modelling undertaken in September 2022. They do not include the entity’s repayments of wholesale costs at the price cap, which may be more or less than the gross wholesale energy costs and are not an estimate of the likely net costs to the taxpayer from Bulb. Costs will continue to fluctuate, driven by market volatility meaning any published figures remain uncertain.

The Warm Home Discount is a supplier obligation scheme, and participating energy suppliers are responsible for providing rebates and funding Industry Initiatives.

In 2021/22, the only costs to Government were administrative costs associated with running the scheme. Participating energy suppliers provided £359 million of support to households.

The final figure for the amount of support delivered under the scheme in 2022/23 will be available in Ofgem’s annual report later in the year.

On 3rd February, the Department published expenditure figures for the Energy Price Guarantee. As of 29th December 2022, GB and NI EPG expenditure totalled £6.97 billion.

The Office for Budget Responsibility’s current forecasted expenditure of the EPG for the financial year 2022/23, as published in November 2022, is £24.8 billion. The OBR will be publishing updated figures on 15th March, with updated forecasts expected to be lower than published in the Autumn Statement.

Low carbon hydrogen is critical to energy security, presents a significant growth opportunity and will help the UK reach its net zero target. BEIS has launched a joint Hydrogen Production Business Model and Net Zero Hydrogen Fund allocation round for electrolytic projects, with contracts due to be awarded in 2023. The Government aims to support projects deploying at the earliest opportunity, with up to 1GW electrolytic hydrogen in construction or operation by 2025 and up to 10GW of low carbon hydrogen production capacity by 2030.

The Government considered the potential value of hydrogen production from waste in the July UK Hydrogen Strategy Update to Market. Projects seeking to produce electrolytic hydrogen using energy from waste are already able to apply for support where they can show they meet the current Low Carbon Hydrogen Standard. The Government is considering this production route as it supports UK domestic production, including the appropriate carbon accounting regime under future iterations of the Standard.

The Government considered the potential value of hydrogen production from waste in the July UK Hydrogen Strategy Update to Market. Projects seeking to produce electrolytic hydrogen using energy from waste are already able to apply for support where they can show they meet the current Low Carbon Hydrogen Standard. The Government is considering this production route as it supports UK domestic production, including the appropriate carbon accounting regime under future iterations of the Standard.

HM Treasury is currently conducting a review of the Energy Bill Relief Scheme. Evidence from housing associations has been received. The Government cannot confirm which sectors will receive further support after 31st March 2023 until the end of the review, which will report by the end of the year.

A HM Treasury-led review of the EBRS will determine support for non-domestic energy consumers beyond 31 March 2023. The government has published terms of reference for the review, with the findings to be published by 31 December 2022.

The United Kingdom exited Euratom on 31 December 2021, as per the Withdrawal Agreement. The Government has no intention of re-joining either Euratom or the EU and considers the matter of UK membership permanently settled.

The UK negotiated a separate, comprehensive Nuclear Cooperation Agreement (NCA) with Euratom, which came into effect alongside the Trade and Cooperation Agreement on 31 December 2020, which provides the basis for on-going nuclear cooperation with EU.

The Government recognises the critical role that carbon capture and storage can play in supporting industrial decarbonisation across the UK and in delivering Net Zero. That is why the Government launched the Carbon Capture, Usage and Storage cluster sequencing process, with the aim of having four clusters operational by 2030. Following the selection of the first two clusters – Hynet and the East Coast Cluster – the Government recently announced a shortlist of projects to proceed to due diligence. Details of the process for selecting the next two clusters will be set out in due course.

Energy Bill Support Scheme (EBSS) Alternative Funding will provide a £400 discount on energy bills for the small percentage of households that will not be reached through the Energy Bills Support Scheme. Eligibility, timescales and method of delivery will be announced in the coming weeks.

Heat network consumers receive support through the Energy Bill Relief Scheme (EBRS) and will not receive the Alternative Fuel Payment, which has been designed to support households using alternative fuels. As the EBRS will be scaled back from April 2023 the Government will bring forward a route to deliver bespoke support for those on heat networks. Further details will be published shortly.

Monitoring and evaluation processes are underway for both the Energy Bill Relief Scheme (EBRS) and Energy Price Guarantee (EPG),and further details will be published in due course. Illustrative examples of the level of discount that could be received under the EBRS and EPG have been published on GOV.UK, as well as the unit rate reductions for the EPG scheme for the periods of October to December and January to March. Given the number of different contractual arrangements, range of demand and complexity of the non-domestic market, it would not be practical to undertake a direct comparative analysis between the two schemes.

Ofgem is responsible for regulating network companies, but the Government engages in and supports their work to increase grid infrastructure by speeding up approvals and bringing forward strategic investment through the price control process.

The Government will produce and publish revised National Policy Statements in due course, bring forward measures to improve the performance of the Nationally Significant Infrastructure Project (NSIP) planning process and accelerate development consent. The Government will publish a full NSIP Reform Action Plan, as well as consultations on national policy statements and on further regulatory and guidance changes to improve the operation of the system.

In March 2022, the UK Emissions Trading Scheme (UK ETS) Authority called for evidence on the role of the UK ETS as a possible long-term market for both nature-based and engineered greenhouse gas removal technologies. This asked for views on possible market design, timing of inclusion and market eligibility requirements. The Authority is reviewing the responses and will respond in due course.

The Government also recently consulted on potential business models to unlock investment and enable engineered GGR projects to deploy at scale over the next decade. The consultation closed on 27th September 2022 and we are currently analysing responses.

The OBR figure has been forecast in accordance with usual processes. However, the £6.5bn figure only reflects the public spending implications of the Octopus transaction and does not account for the financial support that will be repaid in accordance with an agreed repayment schedule or recovered by the established shortfall direction mechanism, which means that the Special Administration Regime (SAR) will eventually be fiscally neutral. SAR costs will continue to fluctuate, driven by high energy market volatility meaning any published figures remain uncertain.

The Government is investing over £6.6 billion over this Parliament to help decarbonise homes and buildings, including insulation, and an additional £6 billion will be made available from 2025-2028.

The Government has committed to a ]-year, £4 billion extension and expansion of ECO with ECO4 to accelerate its efforts to improve homes to meet fuel poverty targets. The Government has also announced a further £1 billion extension of the scheme through ECO+ to start in Spring 2023.

The Government has also launched a digitally led service ‘find ways to save energy in your home’. The site provides tailored guidance to help consumers make their homes greener and cheaper to run.

The Government is considering a number of options for increasing energy efficiency standards. For the domestic Private Rented Sector, the Government has consulted on raising the standard to EPC Band C for new tenancies from 1 April 2025, and for all tenancies by 1 April 2028.

The Government is committed to decarbonising heating by 2050, and aims to phase out the sale of new and replacement gas boilers by 2035. The Government will introduce a package of measures that will increase the number of heat pump installations to 600,000 a year by 2028. Heat networks will expand through the Green Heat Networks Fund whilst the feasibility of using hydrogen for heating is assessed.

The Government’s existing public information campaign, Help for Households, is driving up the public’s awareness of all the support available to help them with the cost of living. The Help for Households website includes simple actions people can take to save money on their energy bills, alongside automatic Government support like the Energy Price Guarantee and Energy Bill Support Scheme. The Government is also investing £6.6 billion this Parliament to improve energy efficiency across the country, with much of its support targeting low income and vulnerable households.

More details on the scope and membership of the Taskforce will be announced in due course.

More details on the scope and membership of the Taskforce will be announced in due course.

More details on the scope and membership of the Taskforce will be announced in due course.

The latest projections for fuel poverty in England in 2022 can be found on GOV.UK here: https://www.gov.uk/government/collections/fuel-poverty-statistics#2020-statistics.

An updated projection of the number of households in fuel poverty for 2022 and 2023 will be produced in the 2023 annual fuel poverty statistics.

The Fast Track process will reduce formal consenting times for high quality offshore wind farm development consent order applications from 17-months to 12-months. In the British Energy Security Strategy the Government strengthened the National Policy Statements and implemented a new Offshore Wind Environmental Improvement Package, which introduces strategic compensation, a Marine Recovery Fund and a more strategic approach to Habitats Regulation Assessments. This will allow the UK to accelerate offshore wind deployment needed to meet our 50GW by 2030 ambition, while maintaining protection and improving the natural environment.

A new £18 million public information campaign, launched on Monday 28 November as part of the Government’s wider Help for Households campaign, offer technical tips and advice for people to cut their energy use, while also keeping warm this winter.

Alongside Government support like the Energy Price Guarantee and Energy Bill Support Scheme, the Help for Households website includes actions people can take to save further money on their energy bills such as:

• reducing boiler flow temperature which could save households approximately £100 per year;
• turning down radiators not in use which could save approximately £70 per year; and
• draft-proofing windows and doors which could reduce energy bills by approximately £60 per year.

Yes. The Government scrutinises and approves draw down requests received by Teneo under the funding agreement. To date, the total drawn down amount under the funding agreement is £1.143bn.

Heat network customers with a domestic electricity meter will already be in receipt of the EBSS. The Alternative Funding will provide a £400 discount off energy bills for the small percentage of households who do not have a domestic electricity meter or a direct relationship with an electricity supplier. Eligibility, timescales and method of delivery will be announced in the coming weeks.

Heat network customers are benefiting from the Energy Bill Relief Scheme. These customers will therefore not receive the Alternative Fuel Payment of £200, which has been designed to support households using fuels such as oil, LPG or coal.

My Rt. Hon. Friend Mr Chancellor of the Exchequer has said that the EBRS will be reformed from April 2023. The Government will bring forward a route to deliver bespoke support for on heat network consumers from this date.

The Gas Act 1986 and the Electricity Act 1989 state that Ofgem’s principal objective is to protect the interests of existing and future consumers, including their interests in the reduction of emissions of targeted greenhouse gases. These Acts define emissions and targeted greenhouse emissions as being the same as in Part 1 of the Climate Change Act 2008.

Therefore, Ofgem already has a decarbonisation objective in law, which will be supported by the Strategy and Policy Statement setting out the Government’s priorities as a guide for the regulator. The Government aims to publish a consultation on the Strategy and Policy Statement soon.

As per Teneo’s progress report on 21^st June 2022, a total drawdown of £901m has been used to meet the costs of the Energy Administrators under the funding agreement.

Further Information can be found at: https://find-and-update.company-information.service.gov.uk/company/08469555.

Teneo, as part of their statutory obligations are required to provide progress reports on a six-monthly basis.

The Government is committed to maximising value for money for taxpayers and has the option to recover costs through the shortfall recovery mechanism which would see a levy charged on industry. The decision of how this process will be carried out lies with the Secretary of State.

The Special Administrators of Bulb are required by law to keep costs as low as possible and we continue to engage closely with them to ensure maximum value for money for taxpayers.

The amount of customers’ credit balances held at Bulb Energy is commercially sensitive and will not be published. Bulb customers’ credit balances are protected.

A profit-share agreement will be put in place for the ringfenced business until agreed funding is repaid by Octopus. Under this structure, payments to shareholders or the wider Octopus group from the ringfenced entity would be restricted until the repayable funding to Government is complete.

The details of the profit share agreement are commercially sensitive and will not be published.

The Government will provide financial support to the new entity for the procurement of energy for Bulb customers over the course of Winter 2022. This financial support will be repaid by the new entity in accordance with an agreed repayment schedule.

The sales process between Bulb and Octopus Energy has not yet been completed. Due to the commercial sensitivity around the contractual documentation between Bulb and Octopus, to which the Government is not a counterparty, the Government cannot speculate on when this will cease. The Government remains committed to providing transparency to Parliament at the appropriate time.

I refer the Hon. Member to the answer I gave the Hon. Member for Newcastle upon Tyne Central on 7 November 2022 to Question 77419.

Part of the sale process will involve the transfer of relevant assets to Octopus energy. This will also include Bulb’s employees, reducing any uncertainty they may have about the future of their jobs. The management and any employee matters will be undertaken by the new owners. The Government remains committed in ensuring a smooth transition of the business providing value for all.

The agreement with Octopus Energy to acquire Bulb does not include the sale of the parent company.

The administrators published their six-monthly progress report in June 2022, as per their statutory obligation. This showed that £901m of funding had been drawn down under their funding agreement with BEIS. The Special Administrators of Bulb are required by law to keep costs as low as possible and government continue to engage closely to ensure maximum value for money for taxpayers.

As set out in the March 22 Spectrum Roadmap, https://www.ofcom.org.uk/__data/assets/pdf_file/0021/234633/spectrum-roadmap.pdf, Ofcom (who are responsible for spectrum allocation decisions) is undertaking a review of the role of spectrum in supporting utilities networks, with the goal of developing a strategy to support the changing wireless operational communication needs of the Energy (Electricity and Gas) and Water sectors. BEIS and DCMS are actively engaged with Ofcom on this review, and BEIS are commissioning various studies into the communication requirements of the energy sector.

Ofgem, as the independent regulator of Great Britain gas and electricity markets examines ways to mitigate the impact of energy supplier insolvencies on consumers.

In June 2022, Ofgem published a consultation on options for protecting customer credit balances including ringfencing a proportion of credit balances, with the intention of a statutory consultation to follow.

The terms of the agreement are commercially sensitive and will not be published.

The terms of the agreement are commercially sensitive and will not be published.

The special administrators of Bulb will remain in place until the repayable funding has been received from Octopus. The Government has the option to recoup other costs through the shortfall recovery mechanism which would see a levy charged on energy suppliers

Ofgem is an independent regulator and publication of their assessments is a matter for them.

The Competition and Markets Authority (CMA) is an independent non-ministerial department and determines any investigations it undertakes.

Funding allocations for the Public Sector Decarbonisation Scheme are determined through the Government’s Spending Reviews. These are part of a well-established budgeting framework, carried out approximately every 3 years. This provides certainty for departments, enabling them to plan ahead while balancing the need for spending control and parliamentary oversight. The Public Sector Decarbonisation Scheme is reviewed regularly, including ahead of new phases of the scheme being launched.

The Public Sector Low Carbon Skills Fund has also made available £61 million of grant funding to empower the public sector, including local authorities, to take a strategic approach to decarbonising their estates.

OFGEM calculates and publishes the price cap, which limits the rates a supplier can charge for their default tariffs. The price cap calculations include consideration of global energy prices and cap levels are currently reviewed on a quarterly basis. The Energy Price Guarantee (EPG) scheme then applies a discount to these tariffs. The level of EPG discount will be reviewed quarterly in line with changes to the price cap to ensure that the scheme benefits consumers as intended and reflects any changes in global energy prices.

The Department may make use of non-disclosure agreements when discussing nascent policy proposals that could be market sensitive if more widely disclosed.

The Government’s official statistics on the proportion of households with smart meters are based on data from energy suppliers and are held for Great Britain only. The Government’s official statistics on the rollout of smart meters are available at https://www.gov.uk/government/collections/smart-meters-statistics.

The rollout is making good progress, with more than half of energy meters in Great Britain now smart. At end June 2022 there were 29.5 million smart and advanced meters in homes and small businesses across Great Britain, including 27.8 million smart meters in domestic properties.

The Food Strategy stated that the Government will publish a Land Use Framework for England in 2023. This will set out principles to ensure food security is balanced alongside climate and environment outcomes. The Government is seeking to make the best use of the limited supply of land in England.

The Government’s approach to bioenergy with carbon capture and storage will be set out in the forthcoming biomass strategy.

The Net Zero Strategy set out a range of pathways to reaching net zero, and BEIS and Defra are working together to understand the interaction between our policies.

The Government defines sustainable biomass as biomass that is cultivated, harvested and processed in line with our sustainability criteria. The UK has stringent sustainability criteria in place for the power, heat and transport sectors, and supports the use of biomass only where it is demonstrated to be sustainable and deliver genuine greenhouse gas (GHG) savings compared to fossil materials.

The sustainability criteria cover environmental and social aspects, and requires an understanding of the life-cycle GHG emissions including supply chain emissions (transporting, processing etc), biodiversity, ecosystem services (e.g., soil and water quality) and social issues (e.g. land tenure rights, labour rights).

The Government recognises the need to provide support to domestic consumers of heat networks. The Government is working to develop the appropriate mechanism to implement after March. Further details will be announced in due course.

The Government has been clear that domestic heat network consumers should expect the same level of support as other domestic energy consumers

Heat network consumers with domestic electricity contracts will receive capped electricity prices through the Energy Price Guarantee, credits of £400 on their electricity bills through the Energy Bills Support Scheme, reduced heat prices via the Energy Bill Relief Scheme and, in addition, will receive £100 delivered through the Alternative Fuels Payment to be established by the Energy Prices Bill. Details of support can be found here.

The Department does not collect this information. Ofgem, the independent industry regulator, publishes information about the number of domestic gas and electricity customers with fixed term energy contracts with each supplier: ofgem.gov.uk/energy-data-and-research/data-portal/retail-market-indicators.

Households not on standard gas or electricity contracts, such as those on heat networks – and so outside the available support schemes – will receive support equivalent to both the Energy Price Guarantee and the Energy Bills Support Scheme. The Government is working at pace to determine the most practical and tested routes to deliver this support.

Funding allocations for the Public Sector Decarbonisation Scheme are determined as part of the Government’s wider Spending Reviews.

The structure of funding provided through the Public Sector Decarbonisation Scheme was assessed when designing the scheme and is reviewed regularly, including ahead of new phases of the scheme being implemented.

Phase 3a, which opened for applications in October 2021, had a budget of £475m for the first year (Financial Year 2022/23), of which 15% was ring-fenced for multi-year projects. As a result, £80 million has also been committed to these multi-year projects from the 2023/24 and 2024/25 budgets. In the next Phase (3b), the remaining budget for Financial Year 2023/24 will be allocated and, recognising the high demand for multi-year funding, 50% of the remaining funds available in Financial Year 2024/25 will be available. Phase 3b is due to open for applications in October 2022.

The Energy Administrators are actively considering all exit options in relation to Bulb to discharge their statutory duties and objectives as quickly and efficiently as is reasonably practicable. Expert merger and acquisition (M&A) advisors have been appointed to lead this process which is ongoing.

The guidance for the next application window to the Public Sector Decarbonisation Scheme, Phase 3b, was published online on 2 August 2022. The application window is expected to open in October 2022.

Funding allocations for the Public Sector Decarbonisation Scheme are assessed and determined as part of the Government’s wider Spending Reviews. The structure of funding provided through the Public Sector Decarbonisation Scheme was assessed when designing the scheme and is reviewed regularly, including ahead of new phases of the scheme being implemented.

The Government will publish in due course a consultation on the case for enabling or requiring new domestic gas boilers to be hydrogen-ready from 2026. This consultation has been informed by the Government-funded Hy4Heat R&D programme, the final report for which was published in April 2022.

There has been no paid marketing campaign for the Boiler Upgrade Scheme (BUS). The Department has released information and promotional communications about the scheme, and will continue to monitor demand.

The Boiler Upgrade Scheme application numbers were published on the 25^th August 2022 on the gov.uk website and include a breakdown by region and technology.

The Boiler Upgrade Scheme application numbers were published on the 25^th August 2022 on the gov.uk website and include a breakdown by region and technology.

There is no difference between the public sector pay remit and the civil service pay remit.

The Department is delivering the British Energy Security Strategy within the financial resources allocated through the Spending Review 2021 settlement.

The three sector deals were delivered from within pre-existing budgets and staff resources.

Payments made by Simple Energy are a matter for the administrators of Simple Energy. Payments under the Transitional Service Agreement between Bulb and Simple Energy cover services necessary to preserve and continue the business of Bulb such as Information Technology, services, and employees.

The Department has nil spend against external consultancy to support the delivery of (a) the Nuclear Sector Deal, (b) the Offshore Wind Sector Deal and (c) the North Sea Transition Deal.

This information is not held centrally and can only be obtained at disproportionate cost.

Bulb Energy was placed into Special Administration by way of an order of the court, not a contract. The Special Administrators are bound by the Administration Funding Agreement (AFA), endorsed by the court.

The AFA between the Energy Administrators, Bulb and the Secretary of State is an agreement in respect of financial support during the administration.

The Government has committed to designing a hydrogen business model for transportation infrastructure by 2025, with the aim of providing investors and developers the reassurance they need to bring forward the required transportation infrastructure to meet ambitions for hydrogen. The Government will be publishing an initial consultation on this in due course.

Delivering on the Government's ambition for 50GW of offshore wind by 2030 is key to achieving net zero. Network capacity must be increased in line with this additional cheap, green generation to avoid increased costs of curtailment. This will require more infrastructure, both onshore and offshore, than today.

The Government expects hydrogen to play an important role in decarbonising the economy, including the power sector. The Government is working to accelerate timescales for electricity network infrastructure deployment to ensure renewable power can flow from where it is generated – including in Scotland – to centres of demand. The Government intends for hydrogen to provide flexible low carbon generation capacity in the UK’s future power system and is currently reviewing hydrogen network and storage requirements, with a consultation planned for later this year. The Government is targeting a policy decision for blending up to 20% hydrogen into gas distribution networks in 2023 and will also assess the case for blending at transmission level.

Until now, the Government has set mandatory Warm Home Discount Broader Group eligibility criteria based on the receipt of a means-tested benefit. However, most energy suppliers expanded their eligibility criteria, subject to approval by Ofgem. It is at the discretion of each energy supplier to determine which households receive the rebate, therefore the Government does not have data on the total number of households who would have been eligible for Broader Group rebates.

From this winter, in England and Wales, the Government will replace the Broader Group with a new Core Group 2.

The Government is providing support of at least £1,200 this year to almost all of the 8 million most vulnerable households across the UK. This includes a new one-off £650 cost of living payment to households on Universal Credit, Tax Credits, Pension Credit and legacy benefits. Separate one-off payments of £300 to pensioner households and £150 to individuals receiving disability benefits will also be available as these groups are the most vulnerable to rising prices. Universal support will increase to £400, as the October discount on energy bills is doubled and the requirement to repay it over five years is scrapped. This new £15 billion support package is targeted towards millions of low-income households and brings the total cost of living support to £37 billion this year.

The Government expects to lay regulations for ECO4 this month.

Under the Supplier of Last Resort process domestic consumers have their balances honoured when they transfer to a new supplier.

BEIS is working with Ofgem to understand how certain assets in an insolvency could be protected, and therefore to reduce the costs that eventually fall on customers when a supplier exits the market.

Protecting customer credit balances is a matter for Ofgem and is part of their action plan to develop a package of measures to boost financial resilience in the energy retail market. Ofgem is currently engaging with stakeholders on a range of proposals on how best to tighten rules around credit balances, including a ringfencing mechanism.

Simple Energy Limited was taken in to ‘ordinary’ (not special) administration by its secured creditor on the same day as Bulb Energy entered special administration. Three individuals from Interpath Advisory were appointed administrators of Simple Energy Limited.

No payments have been made to service loans to Simple Energy Limited from investors during the Special Administration Regime (SAR).

This is a matter for the administrators of Simple Energy Limited which is in ‘ordinary’ and not special administration.

Simple Energy Limited was taken in to ‘ordinary’ (not special) administration by its secured creditor on the same day as Bulb Energy entered special administration. Three individuals from Interpath Advisory were appointed administrators of Simple Energy Limited.

No payments have been made to service loans to Simple Energy Limited from investors during the Special Administration Regime (SAR).

This is a matter for the administrators of Simple Energy Limited which is in ‘ordinary’ and not special administration.

Simple Energy Limited was taken in to ‘ordinary’ (not special) administration by its secured creditor on the same day as Bulb Energy entered special administration. Three individuals from Interpath Advisory were appointed administrators of Simple Energy Limited.

No payments have been made to service loans to Simple Energy Limited from investors during the Special Administration Regime (SAR).

This is a matter for the administrators of Simple Energy Limited which is in ‘ordinary’ and not special administration.

The Government is aware of Dr Bellamy's work on the interactions between global environmental change and society. The Government has considered various potential business models for power Bioenergy with Carbon Capture and Storage and will be releasing further information in its upcoming business model consultation on this matter.

BEIS has recently published substantial updates to the CCUS Knowledge Sharing page on the Gov.uk website, which has over 3000 pages of data including past case studies, technical research and lessons learned: https://www.gov.uk/government/collections/carbon-capture-and-storage-knowledge-sharing.

The invasion of Ukraine by Russia has made it important to reduce international dependencies on Russian energy supplies, to support global energy security and facilitate the transition to low-carbon energy.

Whilst the UK is not dependent on Russia for nuclear fuel, we recognise a number of our international partners are. Supply of fuel is a commercial matter for reactor operators and relevant countries. However, the Government recognises the importance of ensuring there is a resilient and diversified global supply of nuclear fuel and is committed to working closely with industry and fuel suppliers to achieve this.

The invasion of Ukraine by Russia has made it important to reduce international dependencies on Russian energy supplies, to support global energy security and facilitate the transition to low-carbon energy.

Whilst the UK is not dependent on Russia for nuclear fuel, we recognise a number of our international partners are. Supply of fuel is a commercial matter for reactor operators and relevant countries. However, the Government recognises the importance of ensuring there is a resilient and diversified global supply of nuclear fuel and is committed to working closely with industry and fuel suppliers to achieve this.

Bulb Energy had 1.513million domestic customers as of November 2021 when it went into administration. The company now has 1.489million domestic customers.

No payments have been made to service loans to Bulb from investors during Special Administration Regime (SAR).

The Government shares the view that any SAR should be a temporary measure and should end as quickly as possible. The administrator has a statutory duty to ensure that SAR is delivered at lowest reasonably practicable cost.

Bulb Energy had 1.513million domestic customers as of November 2021 when it went into administration. The company now has 1.489million domestic customers.

No payments have been made to service loans to Bulb from investors during Special Administration Regime (SAR).

The Government shares the view that any SAR should be a temporary measure and should end as quickly as possible. The administrator has a statutory duty to ensure that SAR is delivered at lowest reasonably practicable cost.

Bulb Energy had 1.513million domestic customers as of November 2021 when it went into administration. The company now has 1.489million domestic customers.

No payments have been made to service loans to Bulb from investors during Special Administration Regime (SAR).

The Government shares the view that any SAR should be a temporary measure and should end as quickly as possible. The administrator has a statutory duty to ensure that SAR is delivered at lowest reasonably practicable cost.

A growing proportion of UK electricity comes from renewables, which reduces exposure to volatile fossil fuel markets. Without the renewables the Government is putting on the grid today, and the green levies that support them, energy bills would be higher than they are now.

The Autumn Budget 2017 committed to further Contracts for Difference (CfD). This existing scheme has shared the risks of investing in new technologies to boost UK renewables and bring in billions of pounds of private investment. The Government will ensure the UK remains a world leader through annual CfD auctions, reducing costs through competition.

The Boiler Upgrade Scheme provides upfront capital grants for the installation of low carbon heating systems in homes and small non-domestic buildings in England and Wales. The scheme will be paid for through exchequer funding and has a budget of £450million over three years as announced at the Spending Review 2021.

Around 20% of annual heating energy is used by hot water in an average three-bedroom semi-detached home with cavity wall insultation. This estimate is based on model outputs for Great Britain from the National Household Model.

Water companies are already funding water efficiency devices to help households reduce water consumption. The Government believes that mandatory water labelling is the best way to help consumers make informed decisions regarding the purchase of water efficient taps and non-electric showers, as well as other water-using products. This will empower consumers to reduce their hot water consumption, which in turn will reduce their carbon emissions and energy bills. A labelling scheme will also encourage manufacturers to innovate and bring more water efficient products to the market.

Decisions on which programmes and research to fund will be taken by ARIA’s CEO once they are appointed and take office.

ARIA’s sole focus will be to fund the most ambitious high-risk research with the potential to provide long-term benefits to our society and economy. ARIA’s Framework Document will require ARIA to have regard to the contribution its projects and programmes make to the UK Government’s climate change targets and environmental goals.

Decisions on which programmes and research to fund will be taken by ARIA’s CEO once they are appointed and take office.

ARIA’s sole focus will be to fund the most ambitious high-risk research with the potential to provide long-term benefits to our society and economy. ARIA’s Framework Document will require ARIA to have regard to the contribution its projects and programmes make to the UK Government’s climate change targets and environmental goals.

In recent years, environmental and social schemes, funded by levies on consumer bills, have been instrumental in driving the decarbonisation of the energy system. As set out in the Heat & Buildings and Net Zero Strategies, the Department for Business, Energy and Industrial Strategy intend to publish a Fairness and Affordability Call for Evidence this year to set out the options for energy levies and obligations. This will consider options to support green choices, expand carbon pricing and remove costs from electricity bills, while seeking to limit the impacts on bills overall, especially for vulnerable consumers.

The Energy Bills Support Scheme is part of a wider package of interventions which is progressive overall. We are consulting with stakeholders on the implementation of the Scheme including representatives of vulnerable customers, and we are receiving inputs via a consultation.

The Government recognises industry preference for legislative certainty to deliver ECO4. However, ECO4 delivery from 1 April 2022, prior to legislation, will still count under the scheme when legislation is in place. Furthermore, the supply chain may continue to deliver to previous ECO3 rules until the end of June 2022, subject to minor amendments. Suppliers have four years to deliver their obligation, and there is not likely to be a financial impact as a result of the legislative timetable.

Details on funding allocated to climate and environment related projects are provided by UKRI through their National Environment Research Council. The UKRI Gateway https://gtr.ukri.org/provides data on publicly funded research and innovation, which is searchable by year and subject area.

The Government does not fund or reimburse suppliers to meet their obligations under the Energy Company Obligation (ECO). ECO is a supplier obligation, and it is up to suppliers how they dispense their obligation and recoup costs from energy bills.

The Government is working quickly to lay regulations. These are subject to the Parliamentary process and priority.

Hybrid heating systems will not be supported through the Boiler Upgrade Scheme. The Government acknowledges that in off gas grid areas, a future transition from heating oil and LPG to biofuels may allow the boiler element of a hybrid system to decarbonise and the Government recognises the work taking place within the oil and LPG industries to that end. However, the Government does not yet have sufficient evidence to take decisions on the potential role of biofuels in this context.

The Government has committed to spend £6.6billion in this Parliament to further improve the energy performance of our buildings through a range of schemes. The Boiler Upgrade Scheme will provide grants of £5,000 for air source heat pumps and biomass boilers, and £6,000 for ground source heat pumps to support homes off the gas grid transition away from fossil fuel heating. In the Heat and Buildings Strategy, the Government set out ambitions to work with industry to reduce the upfront costs of heat pumps by 25-50% by 2025 and to parity with gas boilers by 2030.

This Government’s proposals to help households across England use water more efficiently were announced last year by my rt. hon. Friend the Secretary of State for Environment, Food and Rural Affairs[1].

The principle objectives of the Energy Company Obligation (ECO) scheme and other domestic retrofit schemes are to help alleviate fuel poverty, accelerate progress to meet targets, and contribute to carbon reduction targets in the domestic sector. ECO also aims to reduce the costs of meeting the UK’s renewable energy target through promoting more efficient energy use.

It is not within scope of ECO or other existing domestic retrofit policies to address water efficiency.

[1] https://questions-statements.parliament.uk/written-statements/detail/2021-07-01/hcws140

As outlined in the Energy-related Products Policy Framework, the Government estimates 0.9 million tonnes of CO2 equivalent could be saved over Carbon Budget 5 through consumer behaviour change encouraged by a mandatory water label on taps and non-electric showers.

Defra has already committed to mandatory water labelling on taps and non-electric showers, among other products, and is working closely with BEIS officials to explore the inclusion of energy efficiency information on the labels in order to best support consumers to make energy- and money-saving purchases.

The Government will continue to explore the feasibility of other efficiency measures for these products.

Hybrid heating systems will not be supported through the Boiler Upgrade Scheme as funding will be directed towards the technologies that offer the greatest carbon savings, rather than those which will continue to involve the burning of fossil fuels for heating.

Electricity Distribution Network Operators monitor their networks and engage with customers connecting domestic heat pumps and electric vehicle chargepoints, including those in rural, off-gas grid areas. This information is used to inform their network planning and to secure funding from the independent energy regulator, Ofgem, through the price control process to ensure their networks can accommodate the increased demand.

The Government recognises the important role that biomethane plays in helping to decarbonise the gas grid and its value across all decarbonisation scenarios, as stated in the 2021 Biomass Policy Statement. The Green Gas Support Scheme, launched on 30 November 2021, provides tariff-support for biomethane produced via anaerobic digestion and injected into the gas grid. The Government expects the scheme to play a crucial role in greening the grid and contributing to broader ambitions, including supporting jobs and the rural economy.

The Strategy will review the amount of sustainable biomass available to the UK and how this resource could be best utilised across the economy to help achieve the Government’s net zero greenhouse gas emissions target by 2050 while also supporting the delivery of wider environmental targets.

Estimated administrative costs are reported by obligated energy suppliers and published by the Department. Across all iterations of the Energy Company Obligation (ECO) since 2013, suppliers are estimated to have spent a total of £506.3 million, or £56.3 million per year on administrative costs. The costs associated with the identification of ECO eligible recipients are factored into total delivery costs and not reported separately.

The Green Gas Support Scheme (GGSS) launched on 30 November 2021 and supports biomethane production and injection into the gas grid. The scheme is open for four years and producers will receive tariff payments for a 15-year period. Increasing the amount of biomethane into the grid will contribute to a circular economy, carbon savings, and domestic energy production. We estimate that during the years of peak production, the GGSS could deliver annual generation of 2.8TWh of renewable heat. This will be enough to heat around 200,000 homes.

The Government plans to publish the Strategy and Policy Statement for Ofgem later this year. In developing the Statement, the Government will engage with stakeholders in the UK energy industry and launch a public consultation.

District or communal heating systems typically buy their energy through commercial contracts which are not covered by the Default Tariff Act. The Government is aware that this can lead to large increases in the bills of some consumers on communal networks and that some consumers are seeing increases larger than would be allowed under the domestic price cap.

The measures announced by my Rt. Hon. Friend Mr Chancellor of the Exchequer on 3 February are intended to cover heat network consumers and we are engaging closely with industry and consumer groups to understand the specific impacts in the heat network sector and continue to assess whether further options are needed to help households through this challenging period.

We need to ensure all heat network consumers receive a fair price for their heating. That is why we are committed to legislating within this parliament to regulate the heat networks sector and in December 2021 we announced that Ofgem will take on the role of regulator. We will therefore give Ofgem new powers to regulate prices in this sector as a matter of priority. This will enable equivalent protection for domestic heat network customers as well as ensuring heat network operators are securing good purchasing deals for their consumers. This will mean that consumers are charged a fair rate for heating whilst encouraging investment in heat networks.

The Government intends to consult on the role of hydrogen-ready boilers soon.

The latest industry figures available to us suggest that 37,000 heat pumps were installed in the UK in 2020, of which the Government estimate that around a third were manufactured in the UK, a little over half were made throughout the rest of Europe and the remainder were imported from outside of Europe. Since publication of that data, several companies have also started manufacturing heat pumps or expanded their existing operations in the UK, such as Mitsubishi, Vaillant and Ideal.

The Government has engaged with industry during the drafting and analysis stages of the consultation for ECO4 and has continued regular engagement with obligated suppliers on the new scheme design. The Government consulted on continuing a scheme that supports low income and vulnerable or fuel poor households across Great Britain, including a carry-over mechanism, which enables suppliers to continue delivery above their existing obligation, to count towards ECO4. The Government will issue a response to the ECO4 consultation shortly.

The Government consulted on continuing a scheme that supports low income and vulnerable or fuel poor households across Great Britain, including a carry-over mechanism, which enables suppliers to continue delivery above their existing obligation, to count towards ECO4. ECO4 will also focus more on fabric first delivery. Together with the minimum energy efficiency requirement, this will incentivise greater uptake in more insulation measures. Furthermore, the Government expects that many of the least energy efficient homes will require solid wall insulation to meet the minimum energy efficiency requirement. However, to provide certainty and support to the supply chain, the Government is proposing to have a solid wall insulation target. The target consulted on was 22,000 per year. The Government will issue a response to the ECO4 consultation shortly.

The agreement on energy in the Trade and Cooperation Agreement is mutually beneficial to the UK and the EU in helping achieve their respective climate change ambitions, making energy more affordable for consumers and in supporting security of supply. The Specialised Committee on Energy oversees the majority of the provisions agreed between the UK and EU in the Energy Title and met for the first time in July 2021; the agenda and minutes of the meeting can be found here: gov.uk. The UK is pressing the EU for a further meeting of the Specialised Committee on Energy as the Government would like to see the full implementation of the Energy Title as a matter of priority.

The Offshore Transmission Network Review is working with multi-purpose interconnectors, offshore wind developers and the onshore transmission owner to facilitate the development of pathfinder projects, including proactively exploring opportunities to coordinate with others in the same region where possible.

The UK Government and Devolved Administrations have committed to reviewing and consulting on the UK ETS’s cap and setting a trajectory for it that is consistent with the Government’s emissions reduction commitments. The Government recognises that the UK ETS will play a key role in meeting net zero by 2050 and has set out its intention to align the cap with a net zero trajectory by no later than January 2024. As stated in the Net Zero Strategy, the UK ETS Authority will consult in the coming months on the trajectory for the scheme’s cap. The Government acknowledges both the updated advice of the Climate Change Committee, issued in June 2021, and the UK Government’s Net Zero Strategy.

The Government has been taking several steps to support the development of multi-purpose interconnectors, including as pathfinder projects under the Offshore Transmission Network Review.

The Government secured a commitment to create a specific forum for technical discussions, including on multi-purpose interconnectors, in the Trade and Cooperation Agreement. Discussions are now underway to establish this forum, with a view to agreeing a Memorandum of Understanding that is acceptable to both sides as soon as possible.

In September 2021, the Government signed a treaty with Norway on Cross-Border Trade in Electricity and Cooperation on Electricity Interconnection.

On 23 February 2022 the Government signed a Memorandum of Understanding with Belgium, agreeing to cooperate in the field of electricity interconnection, including exploring new opportunities like that of the proposed Nautilus Multi-Purpose Interconnector between the UK and Belgium.

Encouraging industry to switch to low carbon fuels such as electricity is a major aspect of the Government’s Industrial Decarbonisation Strategy. The Government recognises that the main barrier to industrial electrification is that electricity is significantly more expensive than gas.

The Government already has a range of policies in place to support industrial electrification, including the Industrial Energy Transformation Fund and Industrial Fuel Switching Competition. The UK Emissions Trading Scheme acts as a cross-cutting policy lever to drive market-based abatement, incentivising industries to find the most cost-effective solutions to decarbonise.

The Government will publish a Fairness and Affordability Call for Evidence to set out the options for energy levies and obligations to help rebalance electricity and gas prices to support the transition to net zero, with a view to taking decisions in 2022.

Encouraging industry to switch to low carbon fuels such as electricity is a major aspect of the Government’s Industrial Decarbonisation Strategy. The Government recognises that the main barrier to industrial electrification is that electricity is significantly more expensive than gas.

The Government already has a range of policies in place to support industrial electrification, including the Industrial Energy Transformation Fund and Industrial Fuel Switching Competition. The UK Emissions Trading Scheme acts as a cross-cutting policy lever to drive market-based abatement, incentivising industries to find the most cost-effective solutions to decarbonise.

The Government will publish a Fairness and Affordability Call for Evidence to set out the options for energy levies and obligations to help rebalance electricity and gas prices to support the transition to net zero, with a view to taking decisions in 2022.

The UK is a world leader in offshore wind. There is around 11GW of offshore wind currently operational in the UK. A further 8.5GW is currently under construction and is expected to be operational by the mid-2020s. These projects will help the country reach the target of 40GW by 2030.

The Government has proactively engaged with industry during the drafting and analysis stages of the consultation for ECO4. The Government will issue a response to the ECO4 consultation before the end of the current scheme. This will ensure the supply chain can adequately prepare for ECO4, ahead of legislation being laid.

The Government has proactively engaged with industry during the drafting and analysis stages of the consultation for ECO4. The Government will issue a response to the ECO4 consultation before the end of the current scheme. This will ensure the supply chain can adequately prepare for ECO4, ahead of legislation being laid.

The Government has proactively engaged with industry during the drafting and analysis stages of the consultation for ECO4. The Government will issue a response to the ECO4 consultation before the end of the current scheme. This will ensure the supply chain can adequately prepare for ECO4, ahead of legislation being laid.

The Government has proactively engaged with industry during the drafting and analysis stages of the consultation for ECO4. The Government will issue a response to the ECO4 consultation before the end of the current scheme. This will ensure the supply chain can adequately prepare for ECO4, ahead of legislation being laid.

Last Summer the Government consulted on extending the Energy Company Obligation (ECO) Scheme from 2022-26. The Government will issue a response in due course. ECO4 will commence once the Government has sought parliamentary approval. The Government will endeavour to ensure that there is a smooth transition between the end of ECO3 and the start of ECO4.

The Government plans to take decisions in 2026 on the role hydrogen could play in decarbonising heating. To inform these decisions, the Government isworking with industry and others on a range of research and development projects to help assess the feasibility, costs and benefits of using hydrogen in place of natural gas. These projects will also consider potential options for hydrogen infrastructure. The Government welcomed the study from Imperial College as a new contribution to the evidence base.

The Government plans to take decisions in 2026 on the role hydrogen could play in decarbonising heating. To inform these decisions, the Government isworking with industry and others on a range of research and development projects to help assess the feasibility, costs and benefits of using hydrogen in place of natural gas. These projects will also consider potential options for hydrogen infrastructure. The Government welcomed the study from Imperial College as a new contribution to the evidence base.

The Government announced in November 2021 that the UK will move towards making publication of transition plans mandatory for certain firms. Initially, this will require asset managers, regulated asset owners and listed companies to publish transition plans that consider the government’s net zero commitment or provide an explanation if they have not done so. As standards for transition plans emerge, the Government and regulators will take steps to incorporate these into the UK’s Sustainability Disclosure Requirements and strengthen requirements to encourage consistency in published plans and increased adoption by 2023.

Support is available to upgrade homes where tenants in the private rented sector are on a low income.

Under the Energy Company Obligation (ECO) private renters in F and G homes, in receipt of certain benefits, are eligible for solid wall insulation and renewable heating measures, as these measures are expected to exceed landlords cost caps to improve the energy efficiency of their property.

Under the Local Authority Delivery scheme and the Home Upgrade Grant, privately rented EPC F and G rated properties with a MEES regulations exemption, can receive funding provided tenants meet the low income eligibility criteria. Landlords must contribute one third of the total cost of the energy efficiency and low carbon upgrades.

Financial support with energy bills is also available to eligible households through the Warm Home Discount, Winter Fuel Payment and Cold Weather Payment.

If a privately rented EPC F/G property has an exemption from MEES then it could be eligible for Sustainable Warmth funding (as the landlord has met the regulations by applying successfully as an exemption). The householder must be on a low income and funding depends on geographical location. Southampton City Council has been successful in securing LAD3 funding under the Sustainable Warmth competition.

For low-income tenants in on-gas grid properties, the landlord must contribute at least one third of the total cost of upgrading the property within the relevant cost caps.

The Boiler Upgrade Scheme, expected to launch in April this year, will provide grants to property owners, including private landlords, for the installation of low carbon heating technologies such as heat pumps. [The property must have a valid EPC which does not have outstanding recommendations for loft or cavity wall insulation.]

The Energy Company Obligation has been in place since 2013. To date it has installed energy efficiency and heating measures in almost 321,000 private rented homes (around 14% of homes upgraded under ECO).

Initial funding for the Home Upgrade Grant was allocated in December 2021 as part of the Sustainable Warmth competition. Delivery will commence from early 2022 until March 2023.

For the Green Homes Grant Voucher scheme, as of 7th January 2022, 49,389 measures were installed in 43,166 households. The next statistical release will be published on 24 February 2022.

The first two phases of funding for the Local Authority Delivery scheme, which has allocated £500 million in grants to Local Authorities, is expected to deliver energy efficiency upgrades to up to 50,000 eligible homes across England.

The Warm Home Discount is a key policy in the Government’s strategy to tackle fuel poverty and reduce the energy costs of low-income and vulnerable households, which is why the Government committed to extend the scheme until 2026 in the Energy White Paper. The Government consulted on expanding and reforming the Warm Home Discount from 2022. Under the plans, the total spending will increase from around £350 million to £475 million per year, and the value of the rebates will increase to £150. As a result of the additional funding, 780,000 more low-income and vulnerable households will receive rebates on their energy bills every winter, with the majority receiving the money automatically and without having to apply.

The Government has committed to extending the Energy Company Obligation from 2022 to 2026. The consultation highlighted how this will help an extra 305,000 families with green measures such as insulation, with average energy savings of around £300 for households benefitting from upgrades. The policy would achieve carbon savings of 12.1 MtCO2e over the lifetime of the policy (2022- 2067).

The Government have committed to extending the Energy Company Obligation Scheme from 2022 to 2026,​ boosting its value to £1billion a year.

The Government have committed to extending the Energy Company Obligation Scheme from 2022 to 2026,​ boosting its value to £1billion a year.

In the Heat and Buildings Strategy, the Government provides a strategic overview of the existing and planned policy interventions required to meet decarbonisation ambitions in heat and buildings. In this strategy, the Government detailed a coherent package of policies, comprising existing, planned and future policies which are yet to be fully developed. Each policy will undergo its own equalities impact assessment ahead of its final design.

As the Government set out in the Heat and Buildings Strategy, a mix of technologies and customer options will need to be available to decarbonise heat at scale.

Evidence to date suggests that there may be a role for alternative electric heating technologies, such as infrared heating, in decarbonising the way the United Kingdom heats its homes and businesses, but this should be limited to specific use cases, such as small flats with low heat demand.

The Springfields site sits at the heart of the UK’s nuclear fuel manufacturing capabilities, and we have a keen interest in its future. Earlier this month, I visited the site to see first-hand the important work taking place, including at the Oxide Fuels Complex. We have also established a working group attended by key stakeholders, including the site operator and unions. Proposals relating to the Springfields site and developing its capabilities, alongside sector co-investment, will be welcomed by the up to £75 million Nuclear Fuel Fund announced in the recent Spending Review.

There are a range of possible options that could be taken to end the Special Administration Regime. These include through a restructuring, a trade sale or transferring the customers to other suppliers.

The Government will work closely with the Energy Administrators to ensure that any exit from the SAR achieves the best result for Bulb’s customers, creditors, taxpayers and the wider energy sector.

The UK is a world leader in the nuclear fuel cycle, and this is testament to the highly skilled workforce currently employed at the Springfields and Capenhurst sites, and the wider UK supply chain. The Government recognises the importance of continued commercial operation of the UK’s fuel production facilities to deliver low carbon energy.

As such, in the recent Spending Review we confirmed up to £75 million, to be used alongside sector co-investment, to preserve and develop the UK’s nuclear fuel production capability. With this funding we will move a programme forward to address all our fuel-related priorities, helping to develop the UK fuel supply chain to power the reactors of today and advanced nuclear in the future.

The Government has made a £1.7 billion loan facility available to the energy administrators for Bulb Energy, to provide working capital for a six-month period. The value of this facility is a contingency - it gives confidence to the energy administrators to carry out their duties effectively – protecting Bulb customers and keeping costs to a minimum for consumers.

The Government will recoup costs through the administrators realising the value of Bulb's assets, or through the established shortfall recovery mechanism which will see a levy charged on industry.

The Government has made a £1.7 billion loan facility available to the energy administrators for Bulb Energy, to provide working capital for a six-month period. The value of this facility is a contingency - it gives confidence to the energy administrators to carry out their duties effectively – protecting Bulb customers and keeping costs to a minimum for consumers.

The Government will recoup costs through the administrators realising the value of Bulb's assets, or through the established shortfall recovery mechanism which will see a levy charged on industry.

The Government is committed to tackling fuel poverty and supporting low income and vulnerable households to heat their homes at an affordable cost. In the Energy White Paper published in December 2020, the Government committed to consult on the Warm Home Discount scheme up to 2025/26. The Government will increase the total spending to £475 million per year (in 2020 prices).

There is no set threshold at which a company would be entered into a Special Administration Regime. Ofgem consider the specifics of the failed supplier and the circumstances in the supply market at the time. If Ofgem considers a Special Administration Regime appropriate, it may make an application to the Court for a decision, with the consent of the Secretary of State.

This is a judgment for Ofgem, who assess the circumstances of the failed supplier and the supply market at the time. If Ofgem considers a Special Administration Regime appropriate, Ofgem will make an application, with the consent of the Secretary of State, to the Court for a decision to place a company into special administration.

Bulb Energy Ltd will only remain in the Special Administration Regime for as long as necessary. There are various options to exit this regime.

The Government will work closely with the Energy Administrators to ensure that the exit from the Special Administration Regime achieves the best results for customers and taxpayers.

The Government will recover costs either by the special administration regime administrator realising the value of Bulb's assets, or through the established shortfall recovery mechanism, which will see a levy charged on industry. The details of this levy will be decided by the Government in consultation with Ofgem and industry.

The Green Homes Grant Voucher (GHGV) scheme launched in September 2020, to help householders and landlords with the cost of installing energy efficient improvements in their home.

Official statistics (https://www.gov.uk/government/collections/green-home-grant-statistics) published on 18 November for the Green Homes Grant Voucher scheme describe the status of applications prior to 05 November. At present the release does not include further application details including how many were landlords, however it does show applications in each region of England.

The next statistical release will be published on 23 December 2021.

Under the Green Homes Grant Scheme vouchers are issued with a 90 day validity period.

The validity period of many vouchers have been extended on request. However, data is not collected on how many voucher extension requests have been accepted or rejected.

Attached is a list of the total funding allocated to each English Local Authority across Phase 1 of the Local Authority Delivery Scheme.

Schemes like the Energy Company Obligation allow energy suppliers to deliver part of their obligation by installing innovative measures in eligible households. In addition, research and development funding is available for developing new alternative heating technologies, such as heat batteries, through programmes like the BEIS Energy Entrepreneurs Fund (EEF) and Clean Growth Fund (CGF).

The Government has made a £1.7 billion loan facility available to the energy administrators for Bulb Energy, to provide working capital for a six-month period. As my Rt. Hon. Friend the Secretary of State set out in the House of Commons last week, we intend for the SAR process to be temporary and has instructed officials, industry and Ofgem to work to that end.

The Government has so far allocated a total of £1.1 billion to the Home Upgrade Grant (HUG), with delivery taking place from early 2022 to March 2025. Funding for HUG Phase 1, worth £152m, is expected to be delivered from early 2022 to March 2023.

Households will be able to refuse any measure or installation at their property under ECO4.

The Government remains committed to improving the energy efficiency of homes as the most sustainable approach to tackling fuel poverty. The Government is investing over £2 billion through projects such as the Home Upgrade Grant (HUG), Local Authority Delivery Scheme, Sustainable Warmth Competition and the Social Housing Decarbonisation Fund. In addition, the Energy Company Obligation supports home upgrades across Great Britain. These schemes are retrofitting low-incomes households with appropriate measures to make them more energy efficient and cheaper to heat.

Under the Green Homes Grant Scheme vouchers are issued with a 90 day validity period.

The validity period of many vouchers has been extended on request. However, data on voucher extensions is not collected.

The Energy Company Obligation scheme (ECO) is an obligation that the Government has placed on larger energy suppliers to install energy efficiency and heating measures to low income and vulnerable households across Great Britain.

The current scheme ends in March 2022, followed by a successor scheme (ECO4). The publication of the government response to the ECO4 consultation is planned before the current scheme ends, followed by further guidance by Ofgem, who are the scheme administrators.

The Government knows that customers are engaged under the Energy Company Obligation 4 scheme (ECO4) since households benefitting under the scheme already have multiple energy efficiency measures installed in their homes. The latest average number of measures delivered is 2.26 per home. The Government expects an average of 2.5 energy efficiency measures installed per home in houses rated band E to G under ECO4.

The Government’s Impact Assessment for ECO4 has considered likely consumer take up by assessing other multi measure schemes, including the Social Housing Demonstrator Fund project, and will be available to view once published in early 2022.

The Government considers floating offshore wind as a vital component of the UK’s energy mix. In addition to the test and demonstration floating projects already in early development, the Crown Estate has commenced work on a floating wind leasing round in the Celtic Sea which could bring forward up to 4GW of new projects. The leasing round will focus on early commercial scale projects of 300-350MW and full commercial scale projects of up to 1GW. The Government recently announced up to £160 million to support large-scale floating offshore wind ports and factories to be built across the UK.

The primary objectives of the GGSS are to reduce emissions of the gas grid and ensure value for money for the billpayer. Paying tariffs to biogas plants on farms that do not inject the biomethane they produce into the gas grid carries the risk of overcompensation and therefore poor value for money to the billpayer. Billpayers would be paying for renewable gas from which they, or the gas suppliers, would never actually benefit.

The primary objectives of the Green Gas Support Scheme are to reduce emissions in the gas grid and ensure value for money for the billpayer. The Department does not currently have plans to develop an alternative scheme specifically to support small, off-grid biomethane supply on farms.

In late October, the Department published two consultations that set out proposals to phase out the installation of high carbon fossil fuel heating systems in homes, businesses, and office buildings off the gas grid during the 2020s, as committed to in the 2017 Clean Growth Strategy, and replace them with low carbon alternatives, in particular the use of heat pumps, where appropriate. Both consultations will close in January 2022.

The primary objectives of the GGSS are to reduce emissions of the gas grid and ensure value for money for the billpayer. Paying tariffs to biogas plants on farms that do not inject the biomethane they produce into the gas grid carries the risk of overcompensation and therefore poor value for money to the billpayer. Billpayers would be paying for renewable gas, from which neither they, nor the gas suppliers, would ever benefit.

The Department has not formally assessed the future role of small-scale biogas plants in mitigating farm methane emissions. The Green Gas Support Scheme, due to launch on 30 November 2021, will provide support for anaerobic digestion plants injecting biomethane into the grid, following the closure of the Non-Domestic Renewable Heat Incentive in March 2021. The Government will continue to evaluate biogas and biomethane’s future role in reaching net zero carbon emissions by 2050.

The Green Homes Grant Voucher scheme was designed as a short-term economic stimulus. It helped raise awareness of green home measures, and improved demand for a range of clean heat and energy saving installations.

In the Heat and Building Strategy, the Government outlines the new £450 million 3-year Boiler Upgrade Scheme which will provide grants of £5,000 from April next year to encourage homeowners to install more efficient, low carbon heating systems, such as heat pumps, that do not emit carbon when used. These grants mean that installing a heat pump will cost a similar amount to installing a traditional gas boiler.

The Government has committed a further £1.8bn over the next 3 years, targeting those in fuel poverty through the Home Upgrade Grant and Social Housing Decarbonisation Fund.

The Government has also expanded the Energy Company Obligation, under which energy companies have already installed 3.3 million measures in 2.3 million homes. We are increasing the amount energy suppliers invest in low-income households and have recently consulted on a new iteration of ECO which will run until 2026 and will see ECO’s value boosted from £640 million to £1 billion a year.

In July 2021, the Government published analysis as part of our Smart Systems and Flexibility Plan, which concluded that by managing the UK’s energy more flexibly, the UK could reduce the investment required in the electricity network and in new electricity generation capacity. In particular, the flexible use of heat – using technologies like heat batteries – could make an important contribution to this objective.

The building regulations are themselves technology-neutral; they do not mandate or ban the use of any specific technologies.

The Government is currently consulting on phasing out the installation of fossil fuel heating in homes off the gas grid in England from 2026. In this consultation, the Government proposes to adopt a ‘heat pump first’ approach to heat decarbonisation in off-grid properties based on extensive assessment of the cost effectiveness of heat pumps relative to other low-carbon heating technologies. The Government is also seeking views on the role of alternative low-carbon heating technologies, such as heat batteries.

Research published by the Department (www.gov.uk/government/publications/cost-optimal-domestic-electrification-code) suggests that alternative electric heating technologies could have a role to play in decarbonising buildings, but can lead to higher lifetime costs relative to heat pumps. The Government acknowledges the wider benefits that heat batteries provide in terms of their ability to support a smart and flexible energy system, therefore the Government is exploring this potential further.

The top three performance indicators have been published in line with BEIS’s commitment to transparency on Key Performance Indicators for government’s most important contracts.

BEIS will publish the 10 Key Performance Indicators in due course.

The Government continues to make funding available for both the development and deployment of innovative low-carbon heating technologies, such as heat batteries.

As set out in the Net Zero Strategy and Heat and Buildings Strategy, the Government is committed to ensuring that the costs of the UK’s transition to net zero is fair and affordable for all energy consumers. The Government’s upcoming Fairness and Affordability Call for Evidence will consider options covering both domestic and non-domestic consumers to shift or rebalance energy levies and obligations over this decade.

As set out in the Net Zero Strategy and Heat and Buildings Strategy, the Government is committed to ensuring that the costs of the UK’s transition to net zero is fair and affordable for all energy consumers. The Government’s upcoming Fairness and Affordability Call for Evidence will consider options covering both domestic and non-domestic consumers to shift or rebalance energy levies and obligations over this decade.

Official statistics published on 18th November for the Green Homes Grant Voucher scheme describe the status of applications prior to 5th November.

As of 5th November, out of 57,684 vouchers issued, 46,213 measures had been installed.

The next statistical release will be published on 23rd December 2021.

Under the Green Homes Grant Scheme vouchers are issued with a 90 day validity period. Many vouchers have been extended on request. In order to ensure the effective management of the end of the scheme, the Green Homes Grant Voucher Scheme closure date has been set at 30 November 2021 and this has been communicated to voucher holders and installers.

In the main, we do not anticipate allowing vouchers to be valid beyond this date.

BEIS officials are working with industry representatives to better understand the global supply chain issues which are affecting various sectors.

This will allow us to continue to support installers on the ground as well as informing further policies in future Government energy efficiency schemes.

Following the closure of the Green Homes Grant Voucher scheme we are refocussing efforts and funding on alternative approaches that will maximise the delivery of home retrofits for consumers who are most in need and support the supply chain to keep delivering.

Official statistics published on 18 November for the Green Homes Grant Voucher scheme describe the status of applications prior to 5th November. Statistics include figures on measures installed and vouchers paid by geographic region.

Official statistics published on 18 November for the Green Homes Grant Voucher scheme describe the status of applications prior to 05 November.

As of 5 November, a total of 43,071 vouchers have been paid, with a Government contribution funding value of £197 million across 988 active installers. As of 5 November, 3,142 vouchers, where Green Home Grant measures have been installed, were awaiting payment.

Payment of the grant is a four-step process that requires the customer to confirm the work has been completed, the installer to lodge the work, the scheme administrator to undertake scheme checks, and then proceeding to payment. Timescales for this may vary.

The next statistical release will be published on 23 December 2021.

Government sees floating offshore wind as a vital component of the UK’s energy mix as the UK moves towards net zero. The Government has committed to delivering at least 1GW floating capacity by 2030 as a steppingstone to larger scale deployment through the 2030s. In the draft budget notice for the 4th Contracts for Difference round, the Government announced ringfenced support for floating offshore wind.

Government sees floating wind as a vital component of the UK’s energy mix as the UK moves towards net zero. Therefore, it has committed to delivering at least 1GW floating capacity by 2030. In the draft budget notice for the 4^th Contracts for Difference round, the Government announced ringfenced support for floating offshore wind.

The UK is a global leader in this technology, with more installed capacity than any other country in the world. The Government believes there is a real opportunity to develop this position to create a strong domestic industry, generating high-skilled jobs and driving investment. The Government has committed up to £160m to develop UK ports and the floating wind supply chain, part of a £380m package over the next four years to support the development of the offshore wind industry in the UK.

Government sees floating wind as a vital component of the UK’s energy mix as the UK moves towards net zero. Therefore, it has committed to delivering at least 1GW floating capacity by 2030. In the draft budget notice for the 4^th Contracts for Difference round, the Government announced ringfenced support for floating offshore wind.

The UK is a global leader in this technology, with more installed capacity than any other country in the world. The Government believes there is a real opportunity to develop this position to create a strong domestic industry, generating high-skilled jobs and driving investment. The Government has committed up to £160m to develop UK ports and the floating wind supply chain, part of a £380m package over the next four years to support the development of the offshore wind industry in the UK.

The draft parameters for the fourth Contracts for Difference (CfD) allocation round published on 13 September 2021 included ring-fenced support for floating offshore wind projects. The statutory notices confirming the parameters for the fourth allocation round will be published shortly, ahead of the round opening to applications on 13 December.

The Government is committed to delivering up to 1GW of floating offshore wind capacity by 2030. The Government recently announced up to £160 million to support large-scale floating offshore wind ports and factories to be built across the UK. Further, the draft parameters for the fourth Contracts for Difference allocation round, published in September, included ring-fenced support for floating offshore wind projects.

The UK and the EU agreed the terms for our association to Horizon Europe under the Trade and Cooperation Agreement. The UK stands ready to formalise our association to EU programmes at the earliest opportunity, but disappointingly there have been persistent delays from the EU.

We see no legal or practical reason why we should not be able to formalise our participation swiftly, and urge the EU to do so.

Our priority is to support our UK’s R&D sector and we will continue to do this in all future scenarios. We have been allocated funding for full association to Horizon Europe, as stated in the Spending Review. In the event that the UK is unable to associate, the funding put aside for Horizon association will go to UK government R&D programmes.

There will be no single policy or technology that cuts carbon emissions to virtually zero, but a diverse mix of technology, such as heat pumps and potentially heating appliances fuelled by hydrogen, alongside green projects like heat networks, that will combine to decarbonise heat in buildings over the next three decades.

Our analysis of off gas grid homes suggests that around 80% of homes have sufficient energy efficiency and electrical connections to accommodate a low temperature heat pump system. This potentially rises to around 90% with fabric upgrades including draught-proofing, cavity wall insulation, floor and loft insulation, and external wall insulation. For homes on the gas grid, our analysis shows that 90% of homes have sufficient energy efficiency and electrical connections, which could increase further with fabric upgrades. However, in both off and on gas grid homes, our analysis does not account for noise and space considerations.

In some cases, accommodating a heat pump may also require changes to the size or specification of pipework and radiators to ensure they can deliver the levels of thermal comfort required by consumers. A qualified installer will be able to advise on the specific measures that might be needed to prepare a home for a heat pump.

Through the Government’s £14.6 million Electrification of Heat Demonstration Project and £60 million Heat Pump Ready Innovation Programme, we are exploring where innovation can help enable the deployment of heat pumps in a range of housing archetypes.

Improving public awareness of the benefits of installing a heat pump will be a key enabler for the large-scale decarbonisation of heat. The Government are currently reviewing the provision of advice delivered through government-endorsed Simple Energy Advice Service, which offers impartial and independent information to consumers on a range of low-carbon heating and energy efficiency solutions.

The Government is also improving our evidence base and considering the best tools to raise public awareness, through the forthcoming £60m Heat Pump Ready Programme, which aims to develop approaches and products to engage effectively with home owners and other key stakeholders who can help to deliver high-density heat pump deployment across the UK. Additionally, the outputs of the ongoing £14.6m Electrification of Heat Demonstration Project, including case studies, will be used to raise consumer awareness of heat pumps.

As part of the Department’s £505 million Energy Innovation Programme, the Electrification of Heat Demonstration Project is showcasing the feasibility of installing heat pumps in a range of homes across the UK.

The installation phase of the Project is coming to a close and initial results, providing installation information, will be published later this year. The Project will continue to monitor performance data from the installed heat pumps over the winter period and further Project results and findings from that phase, including case studies, will be published.

As part of the Department’s £505 million Energy Innovation Programme, the Electrification of Heat Demonstration Project is showcasing the feasibility of installing heat pumps in a range of homes across the UK.

The installation phase for all the Project’s heat pump systems will be completed shortly. The Project will continue to monitor performance data from the installed heat pumps over the winter period and further Project results and findings from that phase, including case studies, will be published.

The Warm Home Discount (WHD) scheme, introduced in 2011, places a legal obligation on medium and larger energy suppliers to deliver support to people living in fuel poverty or a fuel poverty risk group. Ofgem is the WHD scheme administrator.

All suppliers of last resort have agreed to provide Warm Home Discount rebates to the eligible customers of failing suppliers with over 150K domestic customer accounts, and the Government expects them to continue doing so.

The Energy Company Obligation (ECO) is worth £640 million per annum and has been in place since January 2013.

The Government does not have figures on the number of gas boilers and heat pumps installed by each energy company in the last financial year. However, we do know that since ECO began, it has delivered around 3.3 million insulation and heating measures in around 2.3 million homes, up to the end of June 2021.

Obligated suppliers can deliver insulation and heating measures at any time during their obligation period.

The Clean Growth Strategy committed to ‘phase out installation of high carbon fossil fuel heating in buildings not connected to the gas grid, starting with new build, during the 2020s’. As set out in the Energy White Paper and alongside the publication of the Heat and Building Strategy, we are planning to consult on new regulations to phase out heating systems using high carbon fossil fuels such as oil and coal in homes, businesses and public buildings off the gas grid during the 2020s.

The Government is also funding several schemes as part of its commitment to facilitate the decarbonisation of off-gas-grid homes and to make them greener on the path to Net Zero.

Smart meters bring significant benefits to prepayment consumers and have been invaluable during the COVID-19 pandemic. Smart prepayment services enable consumers to top-up remotely without leaving home and without needing to reach inaccessible meters. They also allow consumers to track their balance easily so they do not unknowingly run out of credit. The Government welcomes the insights in the ‘Maximising the smart meter rollout for prepayment customers’ report and are pleased to see that it recognises the transformative experience that smart meters deliver to prepayment customers.

The rollout of smart prepayment meters continues to make good progress, and energy suppliers are installing second generation smart (SMETS2) meters in prepayment mode across Great Britain. The Government has taken a number of steps to ensure that consumers with prepayment meters can benefit from smart meters including, for example, putting in place an explicit objective for Smart Energy GB – the industry body responsible for leading national coordinated consumer engagement – to assist consumers with low incomes or prepayment meters.

The Government and Ofgem have been clear that we expect energy suppliers to ensure that their prepayment customers are able to receive smart meters as soon as practicable. We welcome recent commitments by energy suppliers covering over 90% of customers to support customers over winter, including stepping up smart meter installations for prepayment customers.

A number of policy measures have been considered and are already being implemented. These include publishing guidance to construction companies and other parties to support installation of smart meters in domestic new builds; confirmation that recipients of future Warm Home Discount Industry Initiatives will be provided with smart meters advice; andtargeted funds to decarbonise the public sector and promote smart metering.

The Government will continue analysis of potential policy measures. We will seek input and ideas from stakeholders as the rollout progresses for possible future introduction later in the rollout where appropriate, and dependent on wider industry progress towards reaching high levels of operational fulfilment and delivery of consistently good customer service.

The Government’s new four-year smart metering policy Framework, which commences on 1 January 2022 introduces annual, minimum individual installation requirements for energy suppliers, on a trajectory towards 100% subject to annual tolerance levels which were confirmed for Years 1 and 2 of the Framework in June 2021. The Government will consult on the minimum installation requirements for Years 3 and 4 of the new Framework during 2023.

The Government has worked with industry to identify, define and share good practice to help improve operational capabilities. We will continue to support energy suppliers to further improve operational fulfilment and customer experience.

The Government will engage with energy suppliers and other stakeholders in due course to help define more precisely the pre-conditions for the effective deployment of potential additional policy measures.

The Government is committed to ensuring that households can benefit from smart meters as soon as possible. The rollout is already making good progress, with 25.2 million smart and advanced meters across Great Britain, as of the end of June 2021.

A number of measures have been considered and are already being implemented. These include publishing guidance to construction companies and other parties to support installation of smart meters in domestic new builds; confirmation that recipients of future Warm Home Discount Industry Initiatives will be provided with smart meters advice; and targeted funds to decarbonise the public sector and promote smart metering.

The Government will continue analysis of potential further policy measures. We will seek input and ideas from stakeholders as the rollout progresses for possible introduction later in the rollout where appropriate, and dependent on wider industry progress towards reaching high levels of operational fulfilment and delivery of consistently good customer service.

As announced in the Ten Point Plan, we will bring forward regulations to phase out fossil fuel heating in off grid areas. We intend to consult on these plans in due course.

The Contracts for Difference (CfD) scheme has been successful in bringing forward renewable generation whilst also reducing the costs of technology and since its inception has become established as a route to bring forward investment at scale. As set out in my Rt. Hon. Friend the Prime Ministers’ Ten Point Plan for a Green Industrial Revolution, we have committed to holding regular CfD allocation rounds approximately every two years, and the next round will open in December 2021. The Department continues to keep the scheme under review to ensure it maintains a focus on investment certainty and stability to enable renewable deployment at scale. We recently concluded a Call for Evidence on this topic, seeking views to inform the future design and evolution of the CfD and will publish a response shortly.

Decarbonisation of Northern Ireland’s electricity system will play a key role in achieving the UK’s 2050 net zero targets. Energy policy is devolved to Northern Ireland. In a consultation earlier this year, the Department for the Economy (DfE) put forward a range of potential policies that could form the basis of Northern Ireland’s new Energy Strategy. This included a proposal to explore the possibility of extending the Contracts for Difference scheme to Northern Ireland. In this context, officials from BEIS and DfE are working together to consider the options.

Network charges are one of many factors which developers will take into account in deciding whether, where and when to progress particular energy projects in Scotland and across Great Britain. The reforms which Ofgem is progressing are, amongst other things, designed to support decarbonisation and contribute to meeting net zero at lowest cost. While network charging is a matter for Ofgem as the independent energy regulator, Government recognises the significant role that electricity network charging reforms will have on the wider energy sector, including renewables, and will continue to engage with Ofgem, industry and other interested parties to consider the impacts of the reform proposals.

Network charges are one of many factors which developers will take into account in deciding whether, where and when to progress particular energy projects in Scotland and across Great Britain. The reforms which Ofgem is progressing are, amongst other things, designed to support decarbonisation and contribute to meeting net zero at lowest cost. While network charging is a matter for Ofgem as the independent energy regulator, Government recognises the significant role that electricity network charging reforms will have on the wider energy sector, including renewables, and will continue to engage with Ofgem, industry and other interested parties to consider the impacts of the reform proposals.

Network charges are one of many factors which developers will take into account in deciding whether, where and when to progress particular energy projects in Scotland and across Great Britain. The reforms which Ofgem is progressing are, amongst other things, designed to support decarbonisation and contribute to meeting net zero at lowest cost. While network charging is a matter for Ofgem as the independent energy regulator, Government recognises the significant role that electricity network charging reforms will have on the wider energy sector, including renewables, and will continue to engage with Ofgem, industry and other interested parties to consider the impacts of the reform proposals.

The Contracts for Difference (CfD) scheme is designed to encourage low carbon generation and is open to a wide range of eligible renewable technologies. Under current eligibility criteria, renewable projects are not eligible to receive CfD support if they have already commenced generating. In a Government Response to a consultation published in November 2020 the government clarified the eligibility of part-built projects, i.e. those which have begun construction but have not commenced generating, stating that these projects are eligible to compete in the 2021 allocation round. We consider this achieves the right balance between accelerating deployment of renewables, whilst providing value for money for consumers by ensuring scheme costs are limited to what is necessary to legitimately stimulate deployment. We will keep this position under review.

Achieving net zero carbon emissions will require almost all UK homes to be supplied with low-carbon heating by 2050, and electrification will be an important part of that transition. Extensive government and independent analysis indicate that heat pumps are a cost-effective solution and will be a principal means of decarbonising heat in buildings through electrification over the next decade. There may be a role for alternative technologies, like infrared heating, but research to date – including our 2019 report ‘Evidence gathering for electric heating options in off gas grid homes’ – suggests this should be limited to specific use cases, such as smaller homes with low heat demand.

BEIS officials continue to assess the merits of different heating technologies and support to develop these technologies is available through schemes including the Energy Entrepreneurs Fund and Clean Growth Fund. I refer the Hon. Member to the answer I have given him today to Question 33096 for further information on these schemes.

Achieving net zero carbon emissions will require almost all UK homes to be supplied with low-carbon heating by 2050, and electrification will be an important part of that transition. Extensive government and independent analysis indicate that heat pumps are a cost-effective solution and will be a principal means of decarbonising heat in buildings through electrification over the next decade. There may be a role for alternative technologies, like infrared heating, but research to date – including our 2019 report ‘Evidence gathering for electric heating options in off gas grid homes’ – suggests this should be limited to specific use cases, such as smaller homes with low heat demand.

We continue to encourage innovation in new technologies. Support is available for developing technologies, such as infrared heating solutions, through programmes like the BEIS Energy Entrepreneurs Fund (EEF) and Clean Growth Fund (CGF). The EEF is a competitive grant funding scheme to support the development and demonstration of technologies, products and processes in power generation, energy efficiency and storage technologies, while the CGF aims to accelerate the deployment of innovative clean technologies that reduce greenhouse gas emissions, by making direct investments in companies seeking to commercialise promising technologies.

There are no plans to make an assessment of the inclusion of infrared heating in the Renewable Heat Incentive (RHI). In the first instance, the primary legislation that underpins the RHI, Section 100 of the Energy Act (2008), places strict parameters on the categories of technology that can be supported under the scheme. In addition, the non-domestic RHI has already closed to new applications, and the domestic RHI is scheduled to close to new applications at the end of March 2022. Before a new technology could be introduced into the domestic scheme a formal evidence review would be required, followed by a public consultation. Legislation would then need to be taken through Parliament. This would take longer than the remaining lifetime of the scheme.

The next version of SAP will come into force with the uplift to Part L of the Building Regulations next year. We published an early draft of it in 2018 (SAP 10) and will publish an updated version (SAP 10.2) shortly.

The Government believes that nuclear could have a role in low-carbon hydrogen production and is aware of industry proposals showing how current nuclear technologies could play a role during the 2020s, while small and advanced modular reactors could unlock further efficiencies in future hydrogen production.

In terms of using former nuclear sites, the first priority is to ensure their safety and continued decommissioning, however we regularly engage with opportunities for future re-use where appropriate and this does include alternative energy production.

The Government is developing the first ever UK Hydrogen Strategy which it aims to publish shortly. This will set out the key steps needed in the 2020s to deliver our 5GW ambition and set the context for further scale up on the way to net zero.

As we continue to deliver the commitments within the EPC Action Plan, and develop policies that rely on EPCs as a measure of energy performance, we will monitor and assess relevant material such as the Scottish Government’s EPC proposals, to inform our decision-making in these areas.

We expect the upfront costs of heat pump installations to reduce significantly as the scale of the UK market grows in line with the Government’s ambition for 600,000 heat pump installations per year from 2028.

We are taking a range of steps both to support the heat pump market to develop and to support consumers with the costs of installing a heat pump in the near term while the market builds. These include, for instance, the planned Clean Heat Grant and the Future Homes Standard, which will ensure that new homes are future-proofed with low-carbon heating from 2025.

We will set out further plans for developing the heat pump market in the Heat and Buildings Strategy.

The Government is planning to publish a Heat and Buildings Strategy in due course. This will include information on the Government’s approach to the transition to low carbon heating through a comprehensive policy package comprising targeted regulatory, market-based and public investment measures.

Our plans to scale up heat pump deployment provide a huge opportunity to expand the UK heat pump manufacturing base and exploit future export potential. Published last year, our Heat Pump Manufacturing Supply Chain Research Project indicated that the heat pump market could be worth £5.5 billion to the UK economy by 2035.

In order to help accelerate investment in UK heat pump manufacturing capability and capacity, we are setting clear long-term policy through our forthcoming Heat and Buildings Strategy. The Government is also providing cross-sector fiscal support, including expanded export finance facilities, funding to support training in low-carbon technologies and manufacturing through the National Skills Fund, and a 130 per cent super-deduction capital allowance on qualifying plant and machinery investments. In addition, officials in BEIS, together with colleagues from the Department for International Trade, are working closely with heating appliance manufacturers to provide business investment support.

UK-based heat pump manufacturers – like Mitsubishi Electric, Kensa, Clade Engineering Systems, Star Renewable Energy, Global Energy Systems, Big Magic International – are investing to meet growing demand in the UK and internationally, and Vaillant recently announced plans to expand their UK boiler manufacturing facility in Belper, Derbyshire, to produce heat pumps from 2022. This demonstrates that the UK is an attractive place to invest and to do business.

When it is implemented in 2025, the Future Homes Standard will deliver new homes that are zero carbon ready, with low carbon heating and high levels of energy efficiency. In the 2020 Energy White Paper, we also committed to consulting on the feasibility of ending the connection of new build homes to the natural gas grid, in favour of clean energy alternatives. We expect to consult on this commitment later this year to gather further evidence before taking a decision.

The Energy Performance Certificate (EPC) currently uses an energy cost based rating to encourage the implementation of energy performance improvements that reduce running costs. We are aware of the Scottish Government’s proposal to increase the number of metrics on the EPC. We have consulted recently on regulatory proposals that would use EPCs to support improvement to homes. In these consultations, we have sought views on what EPC metric or metrics are most aligned with our overall policy goals. This included a cost-based rating (Energy Efficiency Rating) and a carbon-based rating (Environmental Impact Rating) alongside seeking views on other options. Furthermore, we are continuing to deliver the commitments in our EPC Action Plan, published last year, to maximise the effectiveness of EPCs in improving the energy performance of buildings.

The Government wants to ensure that households and small businesses in Great Britain can benefit from smart metering. Therefore, we have confirmed that a new four-year smart metering policy Framework will set energy suppliers annual, individual minimum installation targets on a trajectory to 100%, subject to annual tolerance levels which were confirmed for Years 1 and 2 of the Framework in June 2021. The Government will consult on the targets for Years 3 and 4 of the new Framework during 2023.

The new Framework will commence on 1 January 2022.

Smart meters are replacing traditional gas and electricity meters in Great Britain as part of an essential infrastructure upgrade to make the energy system more efficient and flexible, enabling the cost-effective delivery of net zero greenhouse gas emissions.

The Government is committed to ensuring that households and small businesses can benefit from smart meters as soon as possible. Evidence shows that consumer attitudes to smart meters are not fixed and change over time and as such we do not hold an estimate of total consumer acceptance in England. Consumer demand remains strong with around 18,000 smart meters being installed on average each working day.

The Government recognises more may need to be done to engage consumers to reach the very highest levels of smart meter coverage by the end of the rollout. The Government will continue to consider further consumer-orientated policy measures to ensure households can realise the benefits of smart meters and drive completion of the rollout.

Smart meters are replacing traditional gas and electricity meters in Great Britain as part of an essential infrastructure upgrade to make the energy system more efficient and flexible, enabling the cost-effective delivery of net zero greenhouse gas emissions. The rollout is making good progress, with 24.2 million smart and advanced meters in homes and small businesses across Great Britain.

The Government wants to ensure that households and small businesses in Great Britain can benefit from smart metering and recognises that reaching this goal will involve continued collaboration between government, industry and Smart Energy GB and their partner organisations over the next phase of the rollout.

Further detail on activity that is seeking to drive consumer uptake of smart meters, including steps that have already been taken, is included in Annex B of the Government's recent response to the consultation on the smart meter policy framework post 2020: minimum annual targets and reporting thresholds for energy suppliers.

The Government wants to ensure that households and small businesses in Great Britain can benefit from smart metering. Therefore, we have confirmed a new four-year smart metering policy Framework with fixed annual installation targets for energy suppliers will commence on 1 January 2022 to drive the consistent, long-term investment needed to achieve market-wide rollout.

A mid-point review of the Framework will take place during 2023. The review will consider the tolerance methodology, including the forecasting model, as well as the latest available evidence on the progress of the rollout in line with developments in market conditions, consumer attitudes and energy supplier performance. Tolerance levels for Year 3 (2024) and Year 4 (2025) will be consulted upon following that review point and in advance of the start of Year 3.

BioLPG is not widely available to domestic consumers at present. The Clean Heat Grant aims to provide support that will maintain existing low-carbon heat supply chains from April 2022 and so the technologies it will support need to be readily deployable now. It will take time to gather the evidence needed to consider what future role biofuels could play in the decarbonisation of heat, and to develop the policy framework which would support such a role. This process is underway though the Biomass Strategy call for evidence. Biomass boilers are being supported as an alternative to heat pumps within the Clean Heat Grant, providing certain eligibility requirements are met.

BEIS analysis indicates that air source heat pumps would currently cost around £12,000 to install for an average fossil fuel heated home off the gas grid. This includes the upfront cost of the heat pump unit, tanks and cylinders, controls, retrofit of radiators, and installation costs.

Evidence from market research and industry engagement suggests that mass deployment of heat pumps in the UK could lead to a significant reduction in upfront costs for domestic-sized systems due to economies of scale and other efficiencies.

In order to ease consumer costs, the Government has been providing financial support through schemes such as the domestic Renewable Heat Incentive. In addition, from April 2022, the Clean Heat Grant will provide support to off gas grid households switching to low carbon heating, and the Home Upgrade Grant scheme will provide support to low income off grid households installing energy efficiency upgrades and low carbon heating.

The Government is developing options for how a long-term framework of policy approaches, including regulation, can combine to provide a clear direction-of-travel for industry and accelerate the uptake of low-carbon heat, including growing the heat pump market to 600,000 installations per year by 2028. Alongside the publication of the Heat and Building Strategy, we are planning to consult on new regulations to phase out fossil fuel heating in homes, businesses, and public buildings off the gas grid.

Support to transition away from fossil fuel heating is currently available through the Domestic Renewable Heat Incentive (DRHI). Eligible technologies include biomass boilers and pellet stoves, as well as heat pumps. The DRHI is scheduled to close in 2022, however we have consulted on plans for a Clean Heat Grant (CHG) scheme, that will provide upfront grants for the installation of low carbon heating systems, including biomass boilers. Further information on scheme design and eligibility criteria will be set out in the government response to the consultation later this year.

Support for high temperature heat pumps is also available through the DRHI and the planned CHG. High temperature heat pumps may be suitable for use in properties that have a higher heat demand or where it is not appropriate to change the radiators or use under-floor heating.

From early 2022, the Home Upgrade Grant (HUG) will provide support to low income off gas grid households by installing energy efficiency upgrades and low carbon heating. The Sustainable Warmth Competition guidance sets out the expected approach for Local Authorities installing low carbon heating using HUG funding. Where low temperature heat pumps are unsuitable, alternative low carbon heating technologies may be installed if justification can be provided as to how they meet deliverability, value for money, affordability, sustainability, and air quality considerations.

We will consult shortly on our preferred hydrogen business model, or models, for low carbon hydrogen aimed at supporting delivery of our 5GW hydrogen production capacity. Our business model will be designed to support a range of low carbon hydrogen production technologies, including electrolysis using renewable electricity and methane reformation with carbon capture, utilisation and storage (CCUS).

The Government recently ran a Call for Evidence inviting views on what scope there is for marine technologies across the UK including how the Contract for Difference competitive allocation process could most effectively support early commercial deployments of innovative marine technologies. This concluded on 30th September 2020 and we are now considering policy related to wave and tidal stream energy in light of the information received from the Call for Evidence.

We will publish specific allocation round parameters in advance of the next auction. This will include the details of whether any technology-specific minima will apply.

The evidence received from stakeholders in response to our 2018 call for evidence highlighted that electrification of heat is the one pathway to net zero proven to work at scale in homes off the gas grid. This is reinforced by BEIS modelling which suggests around 80% of off gas grid homes currently have sufficient energy efficiency and internal electrical limits to accommodate a heat pump. Our analysis also shows that this figure potentially rises to around 90% with fabric upgrades including draught-proofing, cavity wall insulation, floor, and loft insulation, and / or more major upgrades such as external wall insulation. From 2022, the Clean Heat Grant will provide support to off grid households switching to low carbon heating, and the Home Upgrade Grant scheme will provide support to low income off grid households by installing energy efficiency upgrades and low carbon heating.

Evidence from market research and industry engagement suggests that mass deployment of heat pumps in the UK could lead to a significant reduction in upfront costs for domestic-sized systems due to economies of scale and other efficiencies.

In order to ease consumer costs, the Government has been providing financial support through schemes such as the domestic Renewable Heat Incentive. In addition, from April 2022, the Clean Heat Grant will provide support to off gas grid households switching to low carbon heating, and the Home Upgrade Grant scheme will provide support to low income off grid households installing energy efficiency upgrades and low carbon heating.

The Government is developing options for how a long-term framework of policy approaches, including regulation, can combine to provide a clear direction-of-travel for industry and accelerate the uptake of low-carbon heat, including growing the heat pump market to 600,000 installations per year by 2028. Alongside the publication of the Heat and Building Strategy, we are planning to consult on new regulations to phase out fossil fuel heating in homes, businesses, and public buildings off the gas grid.

The Government recognises that biofuels such as bioLPG and bioliquid alternatives to heating oil may play a role in future off-gas-grid decarbonisation, particularly for those properties that are not suitable for a heat pump. The Department has recently published a Call for Evidence to inform the development of a Biomass Strategy. This strategy will review the amount of sustainable biomass available to the UK, including liquid biofuels, and how this could be best used across the economy to achieve our net zero target. It will also assess the UK’s current biomass sustainability standards, which are some of the most stringent in the world, to see where and how we can improve them even further.

The Department also provides, and will continue to provide, support for households that are off the gas grid to switch to low carbon heating, including in homes where heat pumps are unsuitable. The Domestic Renewable Heat Incentive (DRHI) is targeted at (though not limited to) homes that are off the gas grid, and supports biomass boilers and pellet stoves, and solar thermal (for hot water) systems as well as heat pumps. The DRHI is scheduled to close in 2022, but the successor scheme to the DRHI, the Clean Heat Grant scheme is scheduled to launch in 2022, and will provide upfront capital grants for the installation of low carbon heat systems in domestic and small non-domestic buildings. The scheme will support homes off the gas grid to transition from high carbon fossil fuel heating sources such as oil to low carbon alternatives including biomass boilers where heat pumps are unsuitable.

The most recent estimates for fuel poverty in England are for 2019. An estimated 542,000 fuel poor households in 2019 did not have a gas grid connection.

This figure can be found in Table 10 of the fuel poverty detailed tables statistics: https://www.gov.uk/government/statistics/fuel-poverty-detailed-tables-2021.

The CfD scheme’s success has in part been down to the competitive nature of auctions. To date, no wave or tidal stream projects have been successful in a Contracts for Difference allocation round.

The Low Carbon Contracts Company (LCCC) keeps a register which contains a record of all projects which have been successful in previous allocation rounds. This can be found at https://www.lowcarboncontracts.uk/cfds.

Wave and tidal stream projects remain eligible to compete in Pot 2 for Contracts for Difference auctions. We will publish specific allocation round parameters in advance of the next auction, including consideration of technology-specific minima.

The Government has a target of 1GW of floating wind by 2030.

In addition to the (operational) Hywind and (under construction) Kincardine projects, there are a number of projects at an earlier stage of development – Blyth, Erebus and Pentland.

The current ScotWind seabed leasing process is expected to result in a number of potential floating wind projects. The number, size and locations of potential projects will not be known until the ScotWind process is completed.

The Crown Estate is currently designing new seabed leasing for floating wind projects in the Celtic Sea, focusing on projects of 300MW. The number, size and locations of potential projects will not be known until the process is completed.

On 6 October my Rt. Hon. Friend the Prime Minister announced £160m to support offshore wind and infrastructure across the UK. We announced in March an investment of up to £75m for developing port infrastructure on the Humber and up to £20m for further investment on Teesside.

The UK Government also launched the Offshore Wind Investment Programme on the 22 February to support the delivery of manufacturing investment in the offshore wind supply chain. Whilst the scheme is still running I cannot comment further.

The Institution of Civil Engineers (ICE) are widely recognised for providing leadership to the increased digitalisation of the construction sector and the wider built environment. Innovative digital and information management techniques have already proven to deliver improved sector performance and operational efficiency from our national infrastructure. In future, these will significantly contribute to delivering our Net Zero Carbon commitments.

This is why, in collaboration with industry and academia, the Department is supporting programmes to develop new digital techniques, standards and guidance including funding the National Digital Twin Programme (NDTP). Therefore, we welcome ICE’s support for the NDTP, and we will continue to work with them and other stakeholders to take this forward.

One of the key priorities of this Government is putting in place policies to support a significant growth of offshore wind to 2030 and beyond. Within this, we are committed to supporting the development of floating offshore wind, as reflected by our ambitious target of 1GW of floating wind by 2030.

The Department has regular discussions with members of the floating offshore wind sector. Floating offshore wind projects will be eligible to bid in the next Contract for Difference allocation round, which will open in December 2021. This approach will provide the foundation for investment in a sustainable, competitive UK based supply chain from which we will learn to help plan our future approach and the feasible scale of ramp up of deployment.

One of the key priorities of this Government is putting in place policies to support a significant growth of offshore wind to 2030 and beyond. Within this, we are committed to supporting the development of floating offshore wind, as reflected by our ambitious target of 1GW of floating wind by 2030.

The Department has regular discussions with members of the floating offshore wind sector. Floating offshore wind projects will be eligible to bid in the next Contract for Difference allocation round, which will open in December 2021. This approach will provide the foundation for investment in a sustainable, competitive UK based supply chain from which we will learn to help plan our future approach and the feasible scale of ramp up of deployment.

Onshore wind is a key part of the Government’s strategy for low-cost decarbonisation of the energy sector. Achieving our ambitious 2050 Net Zero target will require significant increases in renewable electricity generation, and we will need to increase deployment across a range of technologies, including onshore wind.

The BEIS ministerial team and officials have regular discussions with the onshore wind industry about how we can achieve this, including the role of supply chains.

The Government has a long history of supporting the development and deployment of wave and tidal stream technologies in the UK. To date, we have provided sustained and targeted support enabling the wave and tidal stream sectors to move from initial concept onto prototypes and now the first arrays. Since 2003, various bodies across Government have provided innovation funding of £175m to the wave and tidal sectors. Wave and tidal stream projects remain eligible to compete in Pot 2 for Contracts for Difference auctions, with the next allocation round commencing December 2021.

The Government recently ran a Call for Evidence inviting views on the scope for marine technologies across the UK. This concluded on 30th September 2020 and we are currently reviewing the responses received.

Grants issued through Phase 1 of the Public Sector Decarbonisation Scheme are projected to reduce carbon emissions by around 100,000 tCO2e per annum.

The Public Sector Decarbonisation Scheme is not designed to produce financial savings, so although some projects may result in financial savings, no projection has been made of total financial savings.

The UK Government at this present time is not undertaking any direct actions to increase investment specifically in the onshore wind supply chain. The BEIS ministerial team and officials meet a wide range of developers and manufacturers in the course of our work, and the Department is always seeking to ensure that we make the most of the economic opportunities created by our world-leading decarbonisation commitments.

The Contracts for Difference (CfD) scheme is the Government’s main mechanism for supporting new renewable electricity generation projects in Great Britain, and in March 2020 we announced that onshore wind would be able to bid in the Contracts for Difference allocation round 4, which is planned to open in December 2021. In parallel, we have also consulted on proposals to strengthen our Supply Chain Plan policy to ensure that developers who bid into the Contracts for Difference allocation round 4 deliver on their commitments to build strong, competitive supply chains for all eligible technologies.

The decision to grant or refuse development consent for the proposed Aquind Interconnector will be taken by my Rt. Hon. Friend the Secretary of State for Business, Energy and Industrial Strategy.

My Rt. Hon. Friend the Secretary of State for Business, Energy and Industrial Strategy meets with my Rt. Hon. Friend the Secretary of State for Transport regularly to discuss all aspects of transport decarbonisation including the role for green hydrogen.

Officials from both departments work together bilaterally and through formal governance.

A good example of cross departmental working is the announcement of £3 million to support the development of the UK’s first Hydrogen Transport Hub in Tees Valley.

My Rt. Hon. Friend the Prime Minister’s 10 Point Plan confirmed our aim, working with industry, for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy. As we progress towards this ambition, we would hope to see around 1GW of hydrogen production capacity by 2025.

The levels of green and blue hydrogen production that make up the 5GW will depend on market developments in the 2020s.

Further details will be set out in the forthcoming UK Hydrogen strategy which will be published this year.

The greenhouse gas emissions associated with different hydrogen production methods depend on a wide range of factors such as the feedstock energy, the efficiency of the hydrogen production plant and the CO₂ capture rate for carbon capture utilisation and storage (CCUS) enabled blue hydrogen production.

BEIS is working with industry, academia and regulators on understanding and comparing options for an emissions standard that will define low carbon hydrogen. As part of this work, we have been assessing emissions associated with a range of hydrogen production methods, including CCUS enabled blue hydrogen and electrolytic green hydrogen.

We will be releasing further detail on this work in the coming months and intend to consult on a UK Low Carbon Hydrogen Standard alongside the UK Hydrogen Strategy.

I meet with my Rt. Hon. Friend Mr Chancellor of the Exchequer regularly to discuss all aspects of my portfolio.

My Rt. Hon. Friend the Prime Minister’s 10 Point Plan confirmed our aim, working with industry, for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy.

The UK has expertise and assets to support both electrolytic (green) and Carbon Capture Utilisation and Storage (CCUS) enabled (blue) hydrogen.

This ambition will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund and our hydrogen business models and a revenue mechanism to bring through private sector investment.

We will be consulting shortly on these measures, alongside the publication of the UK’s first ever Hydrogen Strategy.

The UK is aiming for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy, and we expect this to come from a combination of green and blue hydrogen production methods. The UK currently produces around 10 – 27TWh of hydrogen, most of which is not low carbon (‘grey’) for use in the petrochemical sector.

Production of large-scale blue hydrogen requires the necessary carbon capture and storage infrastructure to be in place, so we do not expect this to come forwards until the mid-2020s. The majority of low carbon hydrogen production during 2021 – 2024 is therefore likely to be green hydrogen, with end use focussed on sectors with existing demand such as transport and industry, with use in heat and power developing over time. To achieve our legally binding net zero commitments we will also need a complete switch to low carbon production, as addressed in our recent Industrial Decarbonisation Strategy.

Further details on how we will scale up production of low carbon hydrogen through the 2020s, as well as decarbonise existing grey hydrogen production, will be set out in the UK Hydrogen Strategy, which will be published in the coming months alongside further detail on the Net Zero Hydrogen Fund and business models to support hydrogen and industrial decarbonisation.

The UK is aiming for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy, and we expect this to come from a combination of green and blue hydrogen production methods. The UK currently produces around 10 – 27TWh of hydrogen, most of which is not low carbon (‘grey’) for use in the petrochemical sector.

Production of large-scale blue hydrogen requires the necessary carbon capture and storage infrastructure to be in place, so we do not expect this to come forwards until the mid-2020s. The majority of low carbon hydrogen production during 2021 – 2024 is therefore likely to be green hydrogen, with end use focussed on sectors with existing demand such as transport and industry, with use in heat and power developing over time. To achieve our legally binding net zero commitments we will also need a complete switch to low carbon production, as addressed in our recent Industrial Decarbonisation Strategy.

Further details on how we will scale up production of low carbon hydrogen through the 2020s, as well as decarbonise existing grey hydrogen production, will be set out in the UK Hydrogen Strategy, which will be published in the coming months alongside further detail on the Net Zero Hydrogen Fund and business models to support hydrogen and industrial decarbonisation.

The Government announced £171m of funding to support nine projects looking to decarbonise activity across five industrial clusters through the Industrial Decarbonisation Challenge. Projects in Scotland, South Wales, Humberside, Teesside and the North West will all receive government support to deploy a range of low-carbon infrastructure and technologies, including but not limited to, low carbon hydrogen. The hydrogen projects supported in these cluster locations will be enabled by the development of the CO2 transport and storage network (blue hydrogen),and will in turn enable decarbonisation across the cluster in line with the objectives of the fund.

The UK has expertise and assets to support both electrolytic (green) and Carbon Capture Utilisation and Storage (CCUS) enabled (blue) hydrogen. Our twin track approach to enable both routes will drive cost effective supply volumes in the 2020s in line with our 2030 5GW ambition, whilst scaling up green hydrogen. Government support for hydrogen production, through the Net Zero Hydrogen Fund and business models is intended to support both green and blue hydrogen projects.

We will publish the first ever UK Hydrogen Strategy this year which will set out the key steps needed in the 2020s to deliver our 5GW ambition and set the context for further scale up on the way to net zero, this will include further details on the role of green hydrogen.

The Industrial Decarbonisation Strategy set out that to be on track to deliver net zero, we expect that the minimum, in all future scenarios, is 20 TWh per year of fossil fuel use replaced with low carbon alternatives in 2030. Hydrogen, electrification and bioenergy all have a role to play, including green hydrogen. Further details will be set out in the forthcoming Hydrogen Strategy.

The Government is providing significant amounts of support to green hydrogen projects. We are investing up to £33m to support the development of a range low carbon hydrogen supply solutions, including green hydrogen projects, through the Hydrogen Supply competition. This includes:

o The Dolphyn project, led by ERM, received £3.1m to develop green hydrogen production from floating offshore wind. The project is due to complete in summer 2021.

o The Gigastack project, led by ITM Power, received £7.5m to further the development of hydrogen production by Polymer Electrolyte Membrane electrolysis. The project is due to complete in summer 2021.

o Four projects received funding to complete green hydrogen feasibility studies, which were completed in 2019.

o Phase 1 of the Green Distilleries Competition has funded a variety of hydrogen projects to complete a feasibility study on their technology. Nine of the 17 feasibility studies funded at Phase 1 are for low carbon hydrogen-related projects, including a novel electrolyser for the production of hydrogen

The forthcoming £240m Net-Zero Hydrogen Fund is intended to support both green and blue hydrogen production. We will be consulting on the design of the fund alongside publication of the first ever UK Hydrogen Strategy set to be published in Q2 of this year. We will also be considering what support is required for green hydrogen as part of developing long term, sustainable business models and the revenue mechanism, to stimulate private investment in new low carbon projects.

In his Spending Review 2020, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced £320 million of funding for the Green Homes Grant Voucher scheme for use in financial year 21/22. Following a review, the voucher scheme closed to new applications on 31 March 2021. All valid applications made to the scheme up to 31st March 2021 will be processed, and all vouchers issued will be honoured – currently estimated as £220 million of expenditure.

The Government will be expanding its funding commitment for both the Local Authority Delivery element of the Green Homes Grant scheme and the Social Housing Decarbonisation Fund with £300 million of new funding and up to £100 million of recycled funding from the Green Homes Grant Vouchers, depending on take up. The funding will be granted in financial year 21/22, with delivery continuing through financial year 22/23.

The Green Homes Grant Local Authority Delivery scheme will deliver energy efficiency upgrades to low-income households via Local Authorities, using existing, or newly procured services from certified installers. All procurement or contracts to supply services under the GHG LAD scheme will be carried out at Local Authority level.

The full £500m has now been granted to Local Authorities in Phase 1 and Local Energy Hubs for Phase 2 and delivery has begun. We will be receiving further information on overall spend as the scheme progresses, however at this time the specific breakdown of payment to contractors is not available.

The Government announced £171m of funding to support nine projects looking to decarbonise activity across five industrial clusters through the Industrial Decarbonisation Challenge. Projects in Scotland, South Wales, Humberside, Teesside and the North West will all receive government support to deploy a range of low-carbon infrastructure and technologies, including but not limited to, hydrogen.

Specific projects that will be supporting and exploring the use of blue hydrogen include:

• The Northern Endurance Partnership (£24m of IDC funding). Creation of an offshore CO₂ transport and storage system connecting two innovative onshore capture projects into one initial geological store, enabling blue hydrogen production.
• Scotland Net Zero (£33.3m for onshore and offshore elements). Blue hydrogen is one element of carbon capture and storage plans, to help provide a tangible path to the decarbonisation of the Scottish industrial cluster.
• Net Zero Teesside (£28m). Project includes exploring ways to produce large scale blue hydrogen through the cluster plan project.
• Zero Carbon Humber Partnership (£21.5m). Delivering low-carbon infrastructure, comprising CO₂ and hydrogen transmission pipelines linking the region's major emitters, providing a pathway to deliver at-scale decarbonisation. Includes development of a blue hydrogen production facility to enable large industrial energy customers across the Cluster to switch from natural gas to hydrogen.
• South Wales (£20m). Blue hydrogen forms one part of their sustainable clean growth plan.

In line with government best practice, BEIS published the contract and legally required information on 17 March. The top three performance indicators have been redacted as they are commercially sensitive, and their publication would be inappropriate at this time.

Following a review, the Green Homes Grant Voucher Scheme closed to new applications on 31 March 2021. BEIS expects ICF to honour their contractual commitments. All compliant applications made to the scheme up to 31st March 2021 will be processed, and all vouchers issued will be honoured.

'Build Back Better: our plan for growth’ sets out the Government’s new framework for how the UK will build back better and drive longer-term growth following COVID-19. The plan, and its range of supporting strategies, take forward the best elements of the Industrial Strategy within a new approach that reflects the changed context since 2017. As part of this transition, we will consider how best to evolve the 2017 Grand Challenges and missions within a forthcoming Innovation Strategy; ensuring any renewed approach is responsive to, and able to effectively deliver current priorities – including our climate and clean growth commitments.

Phase 1A of the Green Homes Grant Local Authority Delivery scheme received 70 applications from Local Authorities. Phase 1B received 108 applications from Local Authorities.

Phase 1A of the Green House Grant Local Authority Delivery Scheme was not over-subscribed – although some applications were rejected which did not meet the eligibility criteria for the scheme or where the deliverability or value for money assessment did not meet the required standard.

Phase 1B was over-subscribed. We assessed all applications according to the same criteria and eligibility requirements. This resulted in 23 bids not being successful – 17 because they did not meet the eligibility criteria for the scheme.

The £2 billion pledged to the Green Homes Grant (GHG) is comprised of £500m of funding for the Local Authority Delivery (LAD) element and £1.5 billion of funding originally allocated to the Voucher Scheme for use in the 2020/21 financial year.

All £500m LAD funding is planned to be allocated to Local Authorities and Regional Energy Hubs, as appropriate, before the end of March 2021. This will be delivered in three phases:

• Phase 1A: over £74 million was allocated in October 2020 to fund energy efficiency projects in over 100 Local Authorities by June 2021.
• Phase 1B: around £126 million of grant offers were made to 81 Local Authorities in January 2021, for delivery of energy efficiency projects by September 2021.
• Phase 2: will see funding of £300m allocated to the five Local Energy Hubs this financial year, to deliver energy efficiency projects by December 2021.

The Voucher Scheme was designed to provide a short-term economic stimulus while tackling our contribution to climate change. However, the prevalence of Covid-19 since the scheme’s launch in September last year has led to an understandable reluctance on the part of the public to welcome tradespeople into their homes. We will continue to work with the scheme’s administrator to ensure voucher applications are processed as quickly as possible. As of 22 February 2021, 25,770 vouchers have been issued. £320 million of funding was announced for the Voucher Scheme for 2021/22 in the November 2020 Spending Review.

The remaining £300 million of funding for the Green Homes Grant Local Authority Delivery scheme will be transferred to the five local Energy Hubs before the end of March 2021.

Phase 1A of the Green Homes Grant Local Authority Delivery (LAD) scheme saw over £74million of funding being allocated to 55 Local Authorities in October 2020 across England.

Under Phase 1B, around £126million of grant offers were made to 81 Local Authorities in January 2021. Further details of these allocations will be announced in the coming weeks once Memorandums of Understanding with individual Local Authorities have been signed.

Phase 2 of LAD will see funding of £300m allocated to the five Local Energy Hubs this financial year who will work with Local Authorities in their region to deliver energy efficiency projects.

Further details of how the allocation of all this funding is spread geographically within England will be announced shortly, once all of the relevant legal processes and transactions have been completed as appropriate.

In the 2020 Spending Review, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced £320 million of funding for the Green Homes Grant Voucher Scheme for 2021/22, as part of funding allocated to make homes and buildings more energy efficient and less carbon intensive.

The Green Homes Grant Local Authority Delivery scheme will upgrade the energy efficiency of around 50,000 homes of low-income households across England. The scheme is being delivered in three phases:

- Phase 1A; over £74million was allocated to 55 Local Authorities in October 2020 to fund energy efficiency projects in over 100 Local Authorities by June 2021.

- Phase 1B:  around £126million of grant offers were made to 81 Local Authorities in January 2021, for delivery of energy efficiency projects by September 2021. Further details of these allocations will be announced in the coming weeks once Memorandums of Understanding with individual Local Authorities have been signed.

- Phase 2:  will see funding of £300m allocated to the five Local Energy Hubs this financial year who will work with Local Authorities in their region to deliver energy efficiency projects by December 2021. Further information on how these funds are being allocated within each region will be confirmed in due course.

The 2020 Spending Review saw £320 million allocated to the Green Homes Grant Voucher scheme for 2021-22; this is independent of the £500m allocated to the Local Authority Delivery scheme in July 2020.

The Green Homes Grant Local Authority Delivery scheme will upgrade the energy efficiency of around 50,000 homes of low-income households across England. The scheme is being delivered in three phases:

- Phase 1A: over £74million was allocated to 55 Local Authorities in October 2020 to fund energy efficiency projects in over 100 Local Authorities by June 2021.

- Phase 1B: £126million of grant offers were made to 81 Local Authorities in January 2021, for delivery of energy efficiency projects by September 2021. Further details of these allocations will be announced in the coming weeks once Memorandums of Understanding with individual Local Authorities have been signed.

- Phase 2: will see funding of £300m allocated to the five Local Energy Hubs this financial year who will work with Local Authorities in their region to deliver energy efficiency projects by December 2021. Further information on how these funds are being allocated within each region will be confirmed in due course.

We have designed the voucher process to automate checks where possible and minimise the time taken for voucher approval. However, applications must be thoroughly checked for compliance with the scheme rules to help ensure value for money, consumer protection, and detect malpractice. As such, waiting times can vary.

We continue to work to reduce the time between application and issuance, where possible.

Homeowners and landlords submit grant applications for energy efficiency and clean heat measures they want to install in their properties, under the scheme. Once approved, vouchers are issued for each measure that has been applied for.

As of 4pm on 12th February, 74,317 applications have been received for the Green Homes Grant Voucher Scheme, with 23,553 vouchers issued.

BEIS will continue to monitor application data as the scheme progresses.

As of 4pm on 12th February, 23,553 vouchers have been issued to customers under the Green Homes Grant Voucher Scheme. The value of these vouchers is currently £101.15 million.

BEIS will continue to monitor application data as the scheme progresses.

In line with Government best practice, we will be publishing the top three performance indicators, outlined in the contract with ICF. BEIS will be publishing the contract and legally required information in due course.

As part of my Rt. Hon. Friend the Prime Minister's Ten Point Plan, £320 million of funding has been allocated the Green Homes Grant Voucher Scheme for 21/22 to make homes and buildings more energy efficient and less carbon intensive.

The Government is committed to delivering our net zero target and will take further steps to decarbonise the UK economy. The Prime Minister recently set out in his Ten Point Plan a £1bn investment to make our homes, schools, and hospitals greener, warmer and energy efficient. Further details on funding will be announced in due course.

In November 2020, the Prime Minister’s Ten Point Plan for a Green Industrial Revolution announced the introduction of the Home Upgrade Grant. We are committing £150 million through the Home Upgrade Grant to help some of the poorest homes become more energy efficient and cheaper to heat with low-carbon energy. The Home Upgrade Grant will support low-income households with upgrades to the worst-performing off-gas-grid homes in England. These upgrades will create warmer homes at lower cost and will support low-income families with the switch to low-carbon heating, contributing to both fuel poverty and net zero targets. The Home Upgrade Grant is due to commence in early 2022.

The Autumn 2020 Spending Review committed a further £60million of funding for the Social Housing Decarbonisation Fund to continue upgrading the least efficient social housing. This funding will support the Government’s 10-point plan and makes further progress towards delivering the Government’s commitment to invest in the energy performance of homes.

The Department contracted ICF to administer the Green Homes Grant Voucher Scheme. In line with government best practice, further information about the contract will be made available in due course.

There is no new £320m Green Home Grant scheme.

My Rt. Hon. Friend Mr Chancellor of the Exchequer announced this funding for the existing scheme in the Spending Review for the next financial year (2021-2022).

The Green Homes Grant Scheme is made up of the Voucher Scheme and the Local Authority Delivery (LAD) Scheme, allocated £1.5bn and £0.5bn, respectively, for the 2020-21 financial year.

Under the LAD scheme, Local Authorities bid for funding to support low-income households in their region. £74million has already been allocated; the remainder of the budget will be allocated this financial year to 5 Local Energy hubs and over 200 Local Authorities, delivering energy efficient upgrades to around 55,000 homes.

As of 8th February, the Green Homes Grant Voucher Scheme has received 71,953 applications. 22,165 vouchers have been approved and issued to customers; the value of these vouchers is £94.1 million.

Official statistics for the Green Home Grant Voucher Scheme will be published in due course.

We are engaging with and listening to feedback from customers and installers and based on this we have already made changes to the scheme to improve the roll-out rate. These include allowing subcontractors to more easily take part in the scheme, reducing the cost of accreditation by 50% for Green Homes Grant scheme installers on the cost of purchasing some PAS standards, streamlining certification processes where possible for installers and making the application process easier for customers.

We have numerous channels for dialogue with the supply chain and consumer groups, including roundtables with certification bodies, trade bodies and representatives from the industry. In December the Department held its first installer Webinar, taking questions and walking through the scheme details and processes with over 150 installers in attendance.

We continue to work with Trustmark and the scheme administrator to ensure as many companies as possible can take part in the scheme and increase the roll-out rate. The £6.9m skills competition we launched in September will provide training opportunities for energy efficiency and low carbon heating supply chains to deliver works and scale up to meet additional consumer demand.

The original funding of up to £1.5 billion for the Green Homes Grant Voucher Scheme was announced as a short-term stimulus, for use in the 2020/21 financial year. In the 2020 Spending Review, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced £320 million of funding for the Green Homes Grant Voucher Scheme for 2021/22, as part of funding allocated to make homes and buildings more energy efficient and less carbon intensive.

The original funding of up to £1.5 billion for the Green Homes Grant Voucher Scheme was announced as a short-term stimulus, for use in the 2020/21 financial year. In the 2020 Spending Review, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced £320 million of funding for the Green Homes Grant Voucher Scheme for 2021/22, as part of funding allocated to make homes and buildings more energy efficient and less carbon intensive.

The Department consulted the construction, insulation, energy and heating industries in the development of the Green Home Grant Voucher Scheme.

We continue to listen to and act upon feedback from stakeholders as we have done since the formation of the scheme.

The Green Homes Grant scheme is an energy efficiency retrofit scheme, focussing on insulation and low carbon heating. The scope of technologies currently included reflects our assessment of the best balance between economic stimulus and maximising value for householders and taxpayers.

Outside of the voucher scheme the Local Authority Delivery (LAD) element is in place to raise the energy efficiency of low income and low EPC rated homes in order to lift households out of fuel poverty whilst delivering progress towards our commitment to net zero by 2050.

We are listening to feedback on the scheme and are keeping the scope of eligible technologies under review.