Asked by: Elsie Blundell (Labour - Heywood and Middleton North)
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 merits of enabling small businesses to renegotiate and exit fixed-term commercial energy contracts agreed during periods of peak wholesale prices.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government’s primary focus is on ensuring energy is affordable for all businesses, and that they are provided better protection from being locked into unfair and expensive energy contracts.
That’s why the Government plans to directly regulate Third-Party Intermediaries (TPIs), by appointing Ofgem as the regulator when parliamentary time allows. A regulated TPI market will drive pro-consumer competition between energy brokers and deliver better outcomes for energy consumers, particularly charities and small businesses.
Asked by: Elsie Blundell (Labour - Heywood and Middleton North)
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 regulatory framework governing the non-domestic energy market; and whether he plans to extend the powers of Ofgem to provide additional protections for SMEs.
Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government and Ofgem continuously monitor the non-domestic energy market to ensure that good outcomes are being delivered for all consumers.
Recently, the Secretary of State and Ofgem’s Interim CEO wrote to non-domestic suppliers and Third-Party Intermediaries (TPIs) to set out their expectations on how consumers should be supported during the current energy price volatility.
The Government and Ofgem have collaborated to deliver a range of interventions in response to the findings of Ofgem’s non-domestic market review and the Government plans to directly regulate TPIs, by appointing Ofgem as regulator when parliamentary time allows. This will protect non-domestic consumers from exploitative and harmful practices employed by some TPIs.
Asked by: Elsie Blundell (Labour - Heywood and Middleton North)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent assessment he has made of the potential impact of rising standing charges on (a) independent pubs and (b) other low-consumption hospitality venues; and what steps he is taking to ensure that fixed network costs do not disproportionately affect small businesses with seasonal and variable energy use.
Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government recognises that standing charges can be a significant concern for some businesses, including those in the hospitality sector. Network charges are designed to be cost-reflective, meaning they reflect the costs imposed on the network by different users.
Ofgem is conducting a holistic review of how energy system costs, including network costs, should be paid for in the future, as part of its Cost Allocation and Recovery Review (CARR). The most recent update as to progress with this review can be found here: Energy system cost allocation and recovery review - Ofgem - Citizen Space.
Alongside this, Ofgem’s work on the non-domestic market has highlighted the need to improve pricing transparency, and the Government has acted to strengthen protections for business consumers—such as measures to improve how businesses are supported in the market, including through action on third‑party intermediaries—so businesses can better understand what they are being charged and access better value contracts.
Asked by: Elsie Blundell (Labour - Heywood and Middleton North)
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 reform the National Energy Security Operator.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
On 1 October 2024, the Secretary of State established the National Energy System Operator (NESO) to support the energy transition including a more strategically planned approach to the energy system. NESO, a public corporation, was designed to operate independently of commercial energy interests and day-to-day Government control.
NESO is an expert adviser to Government and Ofgem and a partner in delivering the UK’s energy ambitions. Ofgem regulates NESO, approves its business plan and monitors value for money and performance.
Since its establishment just over a year ago, the Government has been working closely and constructively with NESO and there are no plans to reform NESO
Asked by: Elsie Blundell (Labour - Heywood and Middleton North)
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 make heat pumps more (a) accessible and (b) cost effective to lower income households.
Answered by Miatta Fahnbulleh
The Warm Homes Plan will help people find ways to save money on energy bills and transform our ageing building stock into comfortable, low-carbon homes that are fit for the future.
The Government is taking steps to make heat pumps more efficient and easier to install, ensuring more households can install a heat pump and benefit from cleaner, more efficient heating. As well as increasing funding for the Boiler Upgrade Scheme to £295 million next financial year, we are removing outdated planning rules and consulting on product efficiency standards.
Further details on the Warm Homes Plan will be set out in due course.
Asked by: Elsie Blundell (Labour - Heywood and Middleton North)
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 has taken to (a) communicate how his Department's policies will help to lower energy bills in 2025 and (b) maintain the level of energy bills during fluctuations in the energy market.
Answered by Miatta Fahnbulleh
Energy bills remain high for too many households. The government’s clean energy mission is the only route to protecting billpayers from the rollercoaster of fossil fuel markets in the long-term, which is why we are sprinting to clean, homegrown energy through the Clean Power Action Plan.
We have also taken urgent action to improve energy efficiency in British homes and protect households’ energy bills. On 21 November 2024, we announced how our Warm Homes Plan will support households to take up measures that can help save money on their bills and deliver cleaner heating, with up to 300,000 homes to benefit from upgrades in the next financial year. We also announced proposals on 7 February 2025 for private landlords to meet higher energy performance standards in their properties by 2030, which could save private renters £240 per year off their energy bills. These policies have been communicated across media and digital channels, including ministerial media interviews, GOV.UK publications, graphics and videos on social media. They have been further amplified through work with our partners to reach wider audiences who follow their channels.
This is alongside our support for the ‘Speak, Seek, Save’ campaign run by Citizens Advice, providing advice to consumers on how to save energy and reduce their bills, which includes publishing and amplifying content on social media.