Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to ensure that cost recovery mechanisms within the electricity system do not adversely impact small businesses.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Department is working closely with Ofgem, who are undertaking a review of how energy system costs are recovered which began with a Call for Input published in July 2025. This review will consider options that make cost recovery fairer and more efficient.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent assessment his Department has made of the potential impact of increases in electricity capacity charges on (a) consumers and (b) businesses.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
By law, energy network charging arrangements are a matter for Ofgem as the independent regulator. Ofgem has identified the need for significant investment in new electricity network capacity to transform Great Britain’s electricity networks to enable clean power and economic growth.
As part of its work to determine the next set of price controls for the electricity transmission and gas transmission and distribution sectors on 4 December, Ofgem conducted analysis of the overall economic impact, which includes an assessment of the direct effects on network charges for both domestic and non-domestic customers. The full impact assessment can be found here: RIIO-3 Final Determinations – Impact Assessment
The Government and Ofgem are committed to ensuring that energy costs are recovered fairly, including considering the ongoing role of standing charges.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if his Department will make an assessment of the potential impact of capacity charges on (a) small and (b) medium sized enterprises.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
By law, energy network charging arrangements are a matter for Ofgem as the independent regulator. Ofgem has identified the need for significant investment in new electricity network capacity to transform Great Britain’s electricity networks to enable clean power and economic growth.
As part of its work to determine the next set of price controls for the electricity transmission and gas transmission and distribution sectors on 4 December, Ofgem conducted analysis of the overall economic impact, which includes an assessment of the direct effects on network charges for both domestic and non-domestic customers. The full impact assessment can be found here: RIIO-3 Final Determinations – Impact Assessment
The Government and Ofgem are committed to ensuring that energy costs are recovered fairly, including considering the ongoing role of standing charges.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if his Department will make an assessment of the potential merits of introducing a ring-fenced budget specifically for geothermal projects in the next round of Contract for Difference funding allocations (AR8).
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Auction parameters and budget are set based on a wide range of factors, including an assessment of the potential project pipeline and progress towards decarbonisation targets. The Government will confirm the details of Allocation Round 8 budget and parameters closer to the time.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to improve regulatory support for geothermal energy.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
We know there is promising potential for geothermal energy in the UK and particularly as a low carbon source of heat. However, it is too soon to regulate such a small and nascent sector. Therefore there are no immediate plans to make any changes in the regulatory space.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if his Department will consider the potential merits of developing a national roadmap with targets for the development of geothermal energy for (a) heat and (b) power generation.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government knows that to achieve net zero, we must look at how we can accelerate the potential of all low carbon technologies including geothermal.
However, the UK Geothermal industry is nascent when compared to other heat and power renewable technologies such as heat pumps and offshore wind. While it seems too soon to assign a target, we will keep this under review. We will continue to gather evidence to inform any future decisions on geothermal and the role it can play in decarbonising heat and power.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent assessment his Department has made of the potential impact of high energy costs on households in rural areas that are not connected to the mains gas grid.
Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently.
The creation of Great British Energy will help us to harness clean energy and have less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030. This, combined with our Warm Homes Plan to upgrade millions of homes to make them warmer and cheaper to run is how we will drive down energy bills and make cold homes a thing of the past.
We recognise that we need to support households struggling with bills whilst we transition to clean power by 2030, including those in rural communities.
We are currently supporting rural and off gas grid homes through schemes including the Warm Homes: Local Grant, which is aimed at low income and vulnerable consumers.
Support is also available through the Warm Home Discount which has been expanded for this winter, – increasing the total number of households that will receive the discount from 3.2 million to around 6 million.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to ensure that households in (a) North Cornwall and (b) other rural areas can connect to (i) solar panels and (ii) other renewable energy systems without having to directly fund local grid upgrades where needed.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Under connection charging rules set by Ofgem, domestic connection customers are not liable for any network upgrade costs to accommodate renewable generation up to 3.68kW per phase. For larger systems, the customer may be liable for a proportion of the upgrade costs.
The Government works with Ofgem to ensure grid investment supports all communities, including rural areas. In the current electricity distribution network price control, RIIO ED2, Ofgem has allowed £22.2bn for upfront network investment, including £3.1bn for upgrades. The next price control (2028–2033) will require distribution network operators to produce long-term regional network plans.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his Department will assess the potential merits of providing funding to upgrade local energy networks to support at-home renewable energy generation in (a) North Cornwall constituency and (b) rural areas.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Government works with Ofgem to ensure grid investment supports all communities, including rural areas. The current electricity distribution price control (RIIO-ED2, 2023-2028) has allowed £22.2bn for upfront investment in low voltage networks, including £3.1bn for network upgrades. For the next price control ED3 (2028 to 2033), Ofgem will use Regional Energy Strategic Plans (RESPs) to inform investment ahead of need and ensure a reliable local power grid fit for the net zero transition. These measures will enable timely upgrades and connections for rural communities, supporting renewable generation and other low-carbon technologies, while maintaining affordability for consumers.
Asked by: Ben Maguire (Liberal Democrat - North Cornwall)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if he will make it his policy that no offshore energy development projects will take place in the most sensitive marine habitats.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The UK Government is committed to accelerating to net zero, delivering clean power by 2030, and to restoring nature. New energy infrastructure must be built in a way that protects the natural environment and supports nature recovery, by following a “mitigation hierarchy” to avoid damage to marine protected areas, and minimising, restoring and delivering compensation when damage cannot be avoided.
The Department will work with Defra to bring together its ministerial colleagues, who share responsibilities for the marine environment and sectors, and The Crown Estate to discuss how best to consider wider demands on the seabed, including the marine environment.