David Jones

The energy savings by households and the related carbon emission savings (a) account for approximately 30% of the gross benefits of the smart meter roll-out. Shifting demand to off peak times (b) accounts for approximately 5% of the projected gross benefits of the smart meter roll-out.

The Smart Metering Impact Assessment applies the social discount rate prescribed by HM Treasury’s Green Book, which forms the guidance for central Government in preparing and analysing proposed policies, programmes and projects.

Our central estimate of the energy savings to households set out in the Smart Metering Impact Assessment is a mean of 2% for gas and 2.8% for electricity (both for customers with credit meters). These energy saving assumptions are at the conservative end of the spectrum, based on international evidence. Our modelling in addition takes into account that other policies with consumption reducing effects have been introduced before smart metering.

The Smart Metering Impact Assessment does not provide a specific estimate of the energy savings that are attributable to the use of an In-Home Display, given that the energy savings households are expected to make from smart meters will be dependent on a number of factors. These include the effectiveness of consumer engagement approaches carried out by energy suppliers before, during and after installation and more broadly by Smart Energy GB, as well as the In-Home Display itself.

Past GB trials and international experience demonstrate that In-Home Displays are instrumental to energy savings. For example, the findings from the Energy Demand Research Project published in 2011 showed that electricity savings with an In-Home Display were generally 2-4% higher than with a smart meter only.

The Major Projects Authority (MPA) publishes annual reports and specific project performance data is published by departments at the same time. The MPA published its annual report on 25 June 2015:

https://www.gov.uk/government/publications/major-projects-authority-annual-report-2015.

In support of the MPA's report, DECC has published data on its projects on the Government Major Projects Portfolio, including the smart meters implementation programme. It is available from the following link:

https://www.gov.uk/government/publications/decc-government-major-projects-portfolio-data-2015.

The assessment of bill impacts on households is carried out to capture all costs that arise from the roll-out of smart meters and includes capital as well as operational expenditure. DECC has not carried out any assessments of household bills that consider the impacts of capital costs alone, but considers the overall impact of its policies on household bills in the annual report “Estimated Impacts of energy and climate change policies on energy prices and bills”.

Evidence from the Energy Demand Research Project (EDRP) trials, published in 2011, has shown that with regards to benefits households in areas with a higher propensity for fuel poverty can benefit at least as much as other households in terms of the percentage energy savings they can realise.

Furthermore, all households over time stand to gain from the efficiency savings to the energy industry which the smart meter system is expected to generate, regardless of further bill savings from reducing their consumption.

There is a very positive economic case for a combined gas and electricity smart meter roll-out in Great Britain. The latest Impact Assessment estimates a net benefit of £6.2 billion over the period to 2030.

Mains gas is prevalent in GB, serving around 80% of premises and supplying most cooking and space heating energy requirements.

The case for including gas meters in the GB smart rollout is compelling. If smart meters were installed for electricity only, energy suppliers would still incur the cost of visiting premises for installations, and they would have to run two systems in parallel – a smart one for electricity, a traditional one for gas. This would involve amongst other things retaining meter reading teams for gas. In addition, consumers would not have access to the information to realise the substantial energy savings related to gas use and heating. Overall, this would reduce the Programme’s Net Present Value significantly.

We are driving forward plans to deliver our manifesto pledge to end new subsidies for onshore wind and to give local communities the final say on windfarm applications as soon as possible. We will publish our plans and timetable for these changes shortly.

The Government recognises the potential for Small Modular Reactors (SMR) technology; in particular the potential for shorter delivery timescales and to reduce the costs of nuclear power for consumers. SMRs could also present high value commercial opportunities for the UK.

The Government has commissioned a feasibility study to assess the technical, economic and commercial case for SMRs. This will inform the evidence base for further decision making. The study, which is being led by the National Nuclear Laboratory with a consortium from academia and industry to provide a broad and balanced view, will be published in Autumn.

The energy National Policy Statements provide guidance to developers and interested parties on applications for nationally significant infrastructure projects in England and Wales, including transmission lines.

The National Policy Statement for Electricity Networks Infrastructure (EN-5 – https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/47858/1942-national-policy-statement-electricity-networks.pdf) makes it clear that my rt. hon. Friend the Secretary of State will only refuse consent for overhead line proposals in favour of an underground or sub-sea line if he is satisfied that the benefits from the non-overhead line alternative will clearly outweigh any extra economic, social and environmental impacts and the technical difficulties are surmountable (paragraph 2.8.9). Factors to be considered include:

• the landscape in which the proposed line will be set;
• the additional cost of any undergrounding or sub-sea cabling; and
• the environmental and archaeological consequences.

The current public procurement rules will continue to apply until the UK has left the EU following the successful conclusion of exit negotiations. The longer-term opportunities for our procurement regulations are being considered carefully.

On 5 September 2023, during Parliamentary debates on the Energy Act, the Government committed to exploring the potential of renewable liquid fuels for heat by issuing a consultation within 12 months.

The Government believes there is an important role for large-scale nuclear in the UK and has been clear in its commitment to “at least one more” gigawatt power plant, subject to clear value for money for both consumers and taxpayers and all relevant approvals. The Wylfa Newydd site remains a candidate for new nuclear power, despite Hitachi’s withdrawal from the proposed nuclear project, and has the potential to host a range of nuclear technology – GW and/or small modular reactors – and the Government is continuing to discuss new projects with other viable companies and investors wishing to develop sites, including this one.

New nuclear can bring significant economic benefits, including high-skilled employment, to regions across the UK. The construction of Hinkley Point C has to-date seen EDF spend £3.5 billion in the south-west and create well over 10,000 job opportunities. It is for private developers to propose and develop projects at suitable sites, however in recognising the importance of nuclear, the government has set out a new £120 million Future Nuclear Enabling Fund towards the development of nuclear projects. More details of the Fund and how it will operate will be released in due course. Government would expect to see similar levels of economic impacts to those at Hinkley in the regions where future power stations might be built.

New nuclear projects can deliver significant local, regional, and national economic benefits, including high-skilled employment, to the UK. Government would expect to see similar levels of economic impacts to those at Hinkley in the regions where future power stations might be built.

The construction of Hinkley Point C has to-date seen EDF spend £3.5 billion in the south-west, and it is estimated that a large-scale nuclear plant would support around 10,000 jobs at peak of construction.

The Government has set out a new £120 million Future Nuclear Enabling Fund towards the development of nuclear projects. More details of the Fund and how it will operate will be released in due course.

The Government is aware of the strong interest and support in North Wales for the development of this site and continues to discuss new projects with other viable companies and investors wishing to develop sites including Wylfa Newydd.

The Government has also set out a new £120 million Future Nuclear Enabling Fund towards the development of nuclear projects. There remain a number of optimal sites for new nuclear, including the Wylfa Newydd.

The Government takes nuclear security extremely seriously. All civil nuclear operators must comply with the UK’s world-leading nuclear security regulatory regime, overseen by a robust and independent regulator - the Office for Nuclear Regulation.

Furthermore, all investment involving critical infrastructure is subject to thorough scrutiny and needs to satisfy our robust legal, regulatory and national security requirements. The National Security & Investment Act gives the Government powers to scrutinise and intervene in acquisitions that may pose national security risks.

Richard Harrington met Katherine Bennett twice during this period, at meetings with other industry representatives. Details of Ministers’ meetings with external organisations are published quarterly on the Gov.UK website: https://www.gov.uk/government/publications?departments%5B%5D=department-for-business-energy-and-industrial-strategy&publication_type=transparency-data

Officials were in regular communication with Katherine Bennett as is usual through May and June in her various roles – as Airbus’s lead UK representative, a member of the Aerospace Growth Partnership (AGP) Board, Chair of the AGP Aerospace Engagement Working Group, and more recently her leading role in the establishment of the Women in Aerospace and Aviation Charter.

There were no Ministerial meetings with BMW during May or June. I visited Airbus’ Filton facility with my hon. Friend the Member for Filton and Bradley Stoke on 21 June, but announcements relating to the UK leaving the EU were not discussed.

Although officials met regularly with Airbus and BMW in the normal course of business during May and June, neither company discussed at these meetings their announcements relating to EU Exit ahead of making them. Their announcements were subsequently discussed in meetings between officials and the companies.

Neither my Rt hon Friend the Secretary of State, nor I have had discussions with charities about the impact of these rules on their work.

The State aid rules apply to funding given to charities, as they would for any other body, where they are involved in economic activities. The rules are blind as to legal form; rather they are concerned with whether an entity is undertaking economic activities. And equally State aid may be granted legally to charities on the same terms as anyone else if it complies with the rules.

The Government is aware that the EU negotiating mandate explicitly refers to state aid in the context of any future trade agreement between the EU and UK. This future relationship is subject to negotiation.

While the Government cannot speculate on outcomes at this stage, any future regime will be based on the principles of open and fair markets. As my Right Hon Friend the Prime Minister said in Florence the Government believes “it would be a serious mistake to try to beat other countries’ industries by unfairly subsidising one’s own”.

The Techno-Economic Assessment of Small Modular Reactors (SMRs) was commissioned by the Government to help build the evidence base on SMRs. The report has helped the Government assess the contribution SMRs could make to the UK energy supply as well as identifying the benefits and risks of SMR deployment. The Government intends to publish the Techno-Economic Assessment in the autumn.

The Government is currently assessing the recommendations of the Hendry Review and will publish a response in due course.

The Minister for the Northern Powerhouse and the Parliamentary Under Secretary for Wales jointly hosted a roundtable in August to discussthese potential benefits. Ministerial and official engagement continues across Departments to capitalise on the opportunities for North Wales from the Northern Powerhouse.