Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether the Offtaker of Last Resort scheme has been implemented.

Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Scheme was introduced on 1 October 2015 and is intended as a last resort to help renewable generators who have an Investment Contract or Contracts for Difference (CFD) contract, who cannot get a PPA through the usual commercial means. Ofgem administer the Offtaker of Last Resort and publish an annual report on the scheme’s operation.

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 an estimate of the potential impact of the smart export guarantee on annual costs to consumers in each year since 2020.

Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Smart Export Guarantee is a market-driven mechanism that captures the value of small-scale exported electricity and helps meet net zero commitments at the lowest net cost to consumers and businesses.

This means that SEG tariffs are set by energy suppliers and the SEG is not expected to lead to a direct cost on consumer bills.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an estimate of the potential impact of changes in the cost of (a) electricity, (b) goods and (c) services arising from (i) direct and (ii) indirect support to renewable energy on VAT receipts in each year since 2002.

Answered by James Murray - Exchequer Secretary (HM Treasury)

The Government is committed to tackling climate change. The Climate Change Act (2008) made the UK the first country to introduce a legally binding, long-term emissions reduction target. Since then, the UK has halved its emissions, having cut them by around 53% between 1990 and 2023.

The Government has announced a national mission to make Britain a clean energy superpower and accelerate our journey to net zero.

As the Government's official independent forecaster, it is for the OBR to consider and report on the fiscal and economic impacts of Government policy decisions made by the Government.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what estimate his Department has made of the proportion of Distribution Use of System charges that were the result of connecting renewable energy generation assets in each year since 2002.

Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Government does not hold this information. Distribution Use of System (DUoS) charges are paid for by electricity suppliers and distribution connected generators

and passed onto consumers through electricity bills. Each Distribution Network Operator (DNO) publishes charging statements every year, which are publicly available on their websites. The system is experiencing rising DUoS charges, due partly to the costs of upgrading the network to connect renewable generation and storage. However, the Government does not hold estimates apportioning overall distribution network costs to these generation sources specifically.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what estimate his Department has made of the annual cost of Distribution Use of System charges since 2002.

Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Government does not hold this information. Distribution Use of System (DUoS) charges are paid for by electricity suppliers and distribution connected generators

and passed onto consumers through electricity bills. Each Distribution Network Operator (DNO) publishes charging statements every year, which are publicly available on their websites. The system is experiencing rising DUoS charges, due partly to the costs of upgrading the network to connect renewable generation and storage. However, the Government does not hold estimates apportioning overall distribution network costs to these generation sources specifically.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what estimate his Department has made of the proportion of Transmission Network Use of System charges that were caused by the (a) expansion and (b) reinforcement required for renewable energy in each year since 2002.

Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Government does not hold this information. Transmission Network Use of System (TNUoS) charges recover the cost of installing and maintaining the high-voltage transmission network, which are paid for by electricity suppliers and transmission-connected generators and administered by the National Energy System Operator (NESO). The charges reflect the costs imposed on the network by generators and demand in different locations. NESO publishes annual TNUoS charges here: https://www.neso.energy/industry-information/charging/tnuos-charges#TNUOS-tariffs-and-notifications-of-changes.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what estimate his Department has made of the proportion of Balancing Services Use of System charges that were caused by the management of renewable energy generation assets in each year since 2002.

Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

Balancing Services Use of System (BSUoS) charges are administered by the National Energy System Operator (NESO). The variable nature of renewable and low carbon intermittent sources of generation can require NESO to undertake additional grid balancing actions. The Government does not hold data apportioning overall balancing costs to these generation sources specifically. NESO publishes BSUoS charges here: Balancing Services Use of System (BSUoS) charges | National Energy System Operator

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what estimate his Department has made of the cost of the Renewable Energy Guarantee of Origin scheme in each year since 2003.

Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

REGO certificates are issued by Ofgem to eligible generators for free, and certificates are then purchased by electricity suppliers to surrender in the Fuel Mix Disclosure process. This has generated a market for the sale and purchase of certificates.

The price of REGOs fluctuates, though credible external estimates suggest that the latest spot market price is around £7 a certificate. Ofgem reports 130 million certificates are issued per year, giving an overall market value of around £910m annually.

Found: inclusion plans In a written statement to the House of Commons, the then Children’s Minister, Claire Coutinho