Asked by: Carla Denyer (Green Party - Bristol Central)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, with reference to the first bullet point on page 23 of EDF Energy Holdings Limited Annual Report and Financial Statements 31 December 2023, what estimate he has made of the amount of compensation that will be paid from Sizewell C to Hinkley Point C; and how that cost will be allocated between (a) private investors, (b) the UK Government and (c) electricity consumers.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Under the terms of a contractual agreement between HPC and SZC, which was agreed at the time of the Final Investment Decision on HPC, a payment is payable from SZC to HPC if SZC takes a positive FID. This payment reflects benefits for SZC, including the significant learning and ‘avoided First-of-a-Kind’ costs that SZC will gain from being a ‘second-of-a-kind’ replica of HPC.
The payment would be financed by the investors in SZC and would be added to the cost base of SZC, and is therefore included in the Government’s Value for Money assessment of the SZC project.
The value of the payment to HPC is intended to be broadly equal to £3/MWh in Net Present Value terms, reflecting the size of the reduction in the strike price at HPC if a positive FID on SZC is taken.
Taking into account the lower HPC strike price, the overall effect of the payment on GB electricity consumers would be broadly neutral.
Asked by: Carla Denyer (Green Party - Bristol Central)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, with reference to the contribution of the Parliamentary Under-Secretary of State for Energy Security and Net Zero in the debate on COP29: UK Priorities on Tuesday 10 September 2024, Official Report, Col 232WH, what the membership is of the Local Net Zero Forum; when the next meeting will take place; and what topics will be on the agenda.
Answered by Kerry McCarthy - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government is committed to strong collaboration with local government on net zero, as demonstrated by having recently signed up to CHAMP - the Coalition for High Ambition Multilevel Partnerships for Climate Action.
The previous government ran the Local Net Zero Forum of which terms of reference, membership and meeting minutes can be found on the Local Net Zero Forum gov.uk page. The Government is currently reviewing the approach and will set out plans in due course.
Asked by: Carla Denyer (Green Party - Bristol Central)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to reduce the upfront cost of heat pumps for households.
Answered by Miatta Fahnbulleh - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government’s Warm Homes Plan will set out a range of measures to support upgrading millions of homes over this parliament, including grants and low interest loans to support investment in low carbon heating, focusing on incentivising people to transition to clean sources of heat.
The Government is also continuing with the Boiler Upgrade Scheme which offers grant payments of £7,500 towards the cost of installing heat pumps, supporting property owners transition away from fossil fuel heating. These grants are in addition to the 0% rate of VAT on the purchase of heat pumps, which will last until March 2027.
Asked by: Carla Denyer (Green Party - Bristol Central)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if he will expand the Boiler Upgrade Scheme grant to cover the costs of connecting to a low-carbon heat network.
Answered by Miatta Fahnbulleh - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Boiler Upgrade Scheme is intended to cover the cost of installations of heat pumps and biomass boilers in individual properties.
However, the Government recognise that heat networks will be one of the primary low-carbon technologies for decarbonising home heating over the next decade and will play a key role in all pathways to 2050.
The Government is working with industry and local authorities and has invested over £500 million to transform the heat network market, protect consumers, improve existing networks, and build new low-carbon ones.