Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he plans to reform Ofgem’s network investment appraisal processes to better reflect regional economic development and decarbonisation potential.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government supports Ofgem in ensuring through its regulation that grid investment benefits communities across Great Britain. In the next electricity distribution price control, ED3 (2028–2033), Ofgem is requiring distribution network operators to develop long term, integrated network development plans informed by Regional Energy Strategic Plans (RESPs). This will help ensure network investment appraisal better reflects regional economic development and decarbonisation potential, while continuing to protect consumers’ interests.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the adequacy of the regional distribution of hydrogen infrastructure funding; and what steps he is taking to help ensure Wales receives a proportionate share of funding.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
In the 2025 Spending Review, Government allocated over £500m for development of the first regional hydrogen network. Government is not prescriptive regarding support provision location, and will assess transport & storage project applications on merit against strategic objectives criteria (e.g. deliverability, decarbonisation potential, and value for money), before contract negotiations with highest-scoring projects. Hydrogen Transport & Storage Business Models support recipients will have had to demonstrate ability to deliver VfM infrastructure, and agreed scope of deliverables with Government. Provided projects meet eligibility criteria, they can apply regardless of location within Great Britain. We welcome applications from Wales on launching.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what discussions he has had with Ofgem on the decision not to fund the HyLine Cymru project; and whether he plans to revisit that decision.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
HyLine Cymru applied for development expenditure funding under Ofgem's RIIO2 reopener mechanism. Government subsequently discussed the strategic value of this project with Ofgem who decided not to fund Hyline Cymru due to its lack of large-scale geological storage, which will be needed for the development of a regional hydrogen network. Decisions regarding funding provided under RIIO2 sit with Ofgem and therefore Government does not intend to revisit this decision.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has had discussions with Ofgem on how its cost-benefit methodology accounts for regions with lower population density such as Wales.
Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Distribution charges - which in part make up the standing charge paid for by all consumers - are designed to be cost reflective and vary by region to reflect local factors in that area, such as geography, network topology and weather conditions.
The principle of cost reflectivity is an important means by which to drive down overall system costs as it helps to guide efficient investment decisions.
Government is working with Ofgem on examining how the costs of building and running the energy system are shared across consumers, aiming to find fairer, more efficient ways of charging, while supporting clean home-grown power and economic growth.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential implications for his policies of the change in the UK's position in the Global Hydrogen Potential Index since 2021; and what steps he is taking to improve the UK’s international competitiveness.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The UK’s standing as a current global leader in hydrogen is reflected in our comprehensive investible policy framework and the number of hydrogen businesses that are based in the UK and developing world-leading technologies for export.
Government is delivering real projects to kickstart the UK hydrogen economy, with contract signings for successful projects from the first Hydrogen Allocation round, with £2.3bn of revenue funding confirmed and a further £500m confirmed for a hydrogen transport and storage network.
The 10 Year Clean Energy Industries Sector Plan (2025) announced new investment to turbocharge growth in the sector and our renewed Hydrogen Strategy, which we plan to publish soon, will set out how we intend to work together with industry to continue to transform ambition into action.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made with the the Chancellor of the Exchequer of the equity and effectiveness of the regional distribution of public funding for hydrogen infrastructure.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Government is not prescriptive regarding the location of support provision for hydrogen infrastructure, and will assess transport & storage project applications on individual merit against criteria reflecting strategic objectives (e.g. deliverability, decarbonisation potential, and value for money), before contract negotiations with highest-scoring projects. Hydrogen Transport & Storage Business Models support recipients will have had to demonstrate ability to deliver value for money infrastructure, and will have agreed scale & cost of deliverables with Government. As long as projects meet eligibility criteria for the regional hydrogen network competition, they will be able to apply regardless of their location within Great Britain.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of the potential role of industrial clusters in South Wales in the UK’s hydrogen economy.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Industrial clusters, such as in South Wales, can support hydrogen production and use by co-locating supply with demand, which helps reduce infrastructure costs, transport requirements, and system risks during market scaleup.
Across the South Wales industrial cluster region, two hydrogen production projects, West Wales Hydrogen in Milford Haven and HyBont in Bridgend, have been awarded funding in the first Hydrogen Allocation Round. The West Wales project recently announced its Final Investment Decision. Together, they will supply local industry, supporting decarbonisation, create skilled jobs and encourage regional economic growth across the South Wales industrial cluster.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what estimate he has made of the potential economic impact of hydrogen investment in Wales, including on the level of (a) Gross Value Added and (b) job creation.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Our Hydrogen Allocation Rounds (HARs) are stimulating private investment in hydrogen projects across the UK, including in Wales. Two of the successful HAR1 projects are in Wales – the HyBont project in Bridgend and West Wales Hydrogen in Milford Haven. The latter recently announced its Final Investment Decision, which I was pleased to mark alongside the Secretary of State for Wales. This project alone represents an investment of over £50 million and is forecast to support over 60 jobs during construction and its operational phase. It will also strengthen domestic supply chains, by choosing Sheffield-based ITM Power to supply its electrolysers.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether the CMA has provided guidance to his Department on the regulation of pricing for heating oil and or LPG.
Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Following discussions with the Competition and Markets Authority, we welcome its comprehensive examination of the heating oil industry. It is vital that customers are treated fairly and any price manipulation will not be tolerated.
We are working closely with the CMA to understand their findings and develop options to increase consumer protections in this sector, including potential regulatory measures.
While this work is ongoing, the Chancellor has announced £53m for low-income households that heat their homes with oil. This funding is available across the UK and Northern Ireland.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he plans to take steps in response to the CMA Road Fuel Monitoring Annual report 2025.
Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government notes the Competition and Markets Authority’s (CMA) annual road fuel monitoring report, which found that competition hasn’t strengthened since the CMA’s Market Study published in July 2023, and that fuel margins remain consistently high and are not explained by operating costs.
The Government has implemented the recommendations made by the CMA, including the launch of Fuel Finder, which now requires all petrol stations in the UK to report their prices within 30 minutes of a change. This scheme aims to increase price transparency and help drivers to compare prices easily and make more informed decisions on where to buy their fuel.