Giles Watling

Ofgem, as the independent expert regulator, has an important role in the transition to net zero. Its principle duty is to protect the interests of existing and future consumers, and this includes consumers’ interests in the reduction of targeted greenhouse gas emissions from electricity and gas supply. Ofgem also has a duty to have regard to the effect on the environment of activities connected with the generation, transmission, distribution and supply of electricity and gas. These duties are set out in Part 1 of the Gas Act 1986 and Electricity Act 1989.

Network regulation is a matter for Ofgem – by law Government has no role. In its RIIO-2 Draft Determinations Ofgem has announced £3bn of upfront funding to connect green electricity sources and transmission grid upgrades. In addition, Ofgem is introducing mechanisms to inject £10bn or more of additional funding that companies can access over the price control to drive decarbonisation and infrastructure upgrades as required, and help to drive green and resilient economic recovery.

In its Decarbonisation Action Plan (link to Plan here), Ofgem stated that it would be ‘reviewing the way our energy systems are managed to ensure they are fit for a net-zero future’.

Ofgem, as the independent expert regulator, has an important role in the transition to net zero. Its principle duty is to protect the interests of existing and future consumers, and this includes consumers’ interests in the reduction of targeted greenhouse gas emissions from electricity and gas supply. Ofgem also has a duty to have regard to the effect on the environment of activities connected with the generation, transmission, distribution and supply of electricity and gas. These duties are set out in Part 1 of the Gas Act 1986 and Electricity Act 1989.

Network regulation is a matter for Ofgem – by law Government has no role. In its RIIO-2 Draft Determinations Ofgem has announced £3bn of upfront funding to connect green electricity sources and transmission grid upgrades. In addition, Ofgem is introducing mechanisms to inject £10bn or more of additional funding that companies can access over the price control to drive decarbonisation and infrastructure upgrades as required, and help to drive green and resilient economic recovery.

In its Decarbonisation Action Plan (link to Plan here), Ofgem stated that it would be ‘reviewing the way our energy systems are managed to ensure they are fit for a net-zero future’.

Ofgem, as the independent expert regulator, has an important role in the transition to net zero. Its principle duty is to protect the interests of existing and future consumers, and this includes consumers’ interests in the reduction of targeted greenhouse gas emissions from electricity and gas supply. Ofgem also has a duty to have regard to the effect on the environment of activities connected with the generation, transmission, distribution and supply of electricity and gas. These duties are set out in Part 1 of the Gas Act 1986 and Electricity Act 1989.

Network regulation is a matter for Ofgem – by law Government has no role. In its RIIO-2 Draft Determinations Ofgem has announced £3bn of upfront funding to connect green electricity sources and transmission grid upgrades. In addition, Ofgem is introducing mechanisms to inject £10bn or more of additional funding that companies can access over the price control to drive decarbonisation and infrastructure upgrades as required, and help to drive green and resilient economic recovery.

In its Decarbonisation Action Plan (link to Plan here), Ofgem stated that it would be ‘reviewing the way our energy systems are managed to ensure they are fit for a net-zero future’.

Officials in the Intellectual Property Office work closely with their counterparts in the Department for International Trade work, the Foreign and Commonwealth Office and the Department for Digital, Culture, Media and Sport on matters relating to the protection of intellectual property (IP) rights around the world.

Government Ministers and HM Ambassador to the Kingdom of Saudi Arabia have raised this matter with the Saudi Arabian Government and will continue to make representations about any alleged broadcast infringement activities of UK IP.

We understand broadcasting piracy in Saudi Arabia, through the pirate operator beoutQ, has now stopped. This followed pressure by the UK, the US, European countries, and major sports rights holders.

The Government will continue to with the UK creative industries to try to understand the commercial effect of the alleged piracy by beoutQ.

Officials in the Intellectual Property Office work closely with their counterparts in the Department for International Trade work, the Foreign and Commonwealth Office and the Department for Digital, Culture, Media and Sport on matters relating to the protection of intellectual property (IP) rights around the world.

Government Ministers and HM Ambassador to the Kingdom of Saudi Arabia have raised this matter with the Saudi Arabian Government and will continue to make representations about any alleged broadcast infringement activities of UK IP.

We understand broadcasting piracy in Saudi Arabia, through the pirate operator beoutQ, has now stopped. This followed pressure by the UK, the US, European countries, and major sports rights holders.

The Government will continue to with the UK creative industries to try to understand the commercial effect of the alleged piracy by beoutQ.

Low carbon hydrogen could play a vital role in meeting the UK’s net zero greenhouse gas emissions target by 2050, supporting both our Industrial Strategy and the revitalisation of the economies of the UK’s industrial areas.

Government is committed to exploring hydrogen’s potential through up to £108 million in innovation funding and £100 million to deploy low carbon hydrogen production capacity. The Government has also committed to invest £800 million to build the first fully deployed CCUS cluster by the mid-2020s and £500 million to help energy-intensive industries move to low-carbon techniques, which could include the use of hydrogen.

Hydrogen is likely to play an important role in achieving the Industrial Clusters Mission, creating the world’s first net zero industrial cluster by 2040 and at least one low carbon cluster by 2030. This is supported by up to £170 million from the Industrial Strategy Challenge Fund to support the deployment of low carbon technologies and enabling infrastructure in one or more clusters.

Tackling climate change is a top priority for the Department. We were the first major economy to legislate for a net zero target and have already made great progress towards it. Since 1990 we have reduced emissions by 42% while growing our economy by 72%.

The government’s Clean Growth Strategy and Industrial Strategy set out strong frameworks to deliver the target in a way that maximises the economic benefits of our transition to net zero. This includes building on our strengths in electric vehicles and offshore wind. In 2018, 1 in 5 battery electric cars sold in Europe were built in the UK[1] and we are spending nearly £1.5 billion out to 2021 to support the take-up of ultra low emission vehicles. The UK has the largest offshore wind capacity in the world, with 34% of global capacity[2]. At the latest contracts for difference allocation round, 12 renewable electricity projects won contracts at record low costs. The auction has delivered enough energy to power 7.2m homes by 2025.

On 15 October, the Government published its response to the CCC’s latest annual Progress Report, setting out the suite of recent announcements made in support of our net zero target, and describing further actions that the Government will take to deliver net zero and meet our carbon budgets. These include plans for the publication in 2020 of an Energy White Paper, a Transport Decarbonisation Plan and a Heat Roadmap.

[1] OLEV (2019) fast facts briefing; ONS (2019) Low carbon and renewable energy economy final estimates: https://www.ons.gov.uk/economy/environmentalaccounts/datasets/lowcarbonandrenewableenergyeconomyfirstestimatesdataset (Updated 19/07/2019 Nelli Vanninen)

[2] GWEC (2018), Global Wind report 2018, https://gwec.net/global-wind-report-2018/, (Updated 16/07/2019 Nelli Vanninen) last updated 07 May 2019 CED briefings

Government expects network companies to work with Ofgem, the independent regulator, to ensure a settlement for the upcoming set of energy network price controls which is fair to investors and consumers, including in relation to Government’s net zero and clean growth ambitions. Network regulation is a matter for Ofgem. By law, Government has no role in this process.

Ofgem has recently taken steps in this regard. In August 2019 Ofgem published an open letter, asking network companies across all sectors to clearly propose and evidence how their business plans for the next price controls are able to adapt to support delivery of the net zero target. Final business plans for electricity transmission will be submitted to Ofgem in December, with determinations to be made by the regulator in 2020 ahead of those new price controls starting in April 2021.

Ofgem has also published an open letter consultation on the proposed framework for the next electricity distribution price control starting two years later in April 2023. In this letter Ofgem states it is considering including a more direct link between network company revenues and the achievement of outcomes outside the delivery of traditional network services, for example the decarbonisation of transport and/or heat. Ofgem expects to confirm its decision on the framework that will apply in December, with further detailed consultation of key regulatory policy areas and approaches, including decarbonisation, scheduled for 2020.

We set the the 6-gigawatt capacity cap for the third Contracts for Difference allocation round based on our understanding of the pipeline of projects. It aims to promote competitive tension, whilst delivering significant capacity, and ensure smooth delivery of low carbon generation through the 2020s.

The Offshore Wind Sector Deal foresees up to 30GW of installed offshore wind capacity by 2030, provided costs continue to fall. This level of certainty, unmatched by any other major European market, sets a firm foundation for offshore wind to play its role in reaching net zero emissions by 2050.

The electrification of heat, notably through heat pumps, can play a key role in decarbonizing heat, which is an essential step in meeting our carbon budgets. The Government is committed to supporting the deployment of heat pumps. Through the Renewable Heat Incentive we are spending £2.8bn between 2018/19 and 2020/21 to support innovative low carbon heat technologies in homes and businesses, including heat pumps.

The Government is currently developing the future policy framework for supporting low carbon heat, including through the Future Homes Standard announced by my. rt. hon. Friend Mr Chancellor of the Exchequer in February 2019. This will set standards through building regulations to drive uptake in low carbon heating.

Low consumer awareness and confidence in heat pumps also remain key issues. BEIS will launch a demonstration project on the electrification of heat in 2019, which will help demonstrate the feasibility of a possible large-scale transition to heat pumps and develop innovative solutions that work for a wide range of homes and consumers.

The Government is working to put the UK at the forefront of the design and manufacturing of zero emission electric vehicles, and for all new cars and vans to be effectively zero emission by 2040.

To achieve this, we are investing nearly £1.5bn‎ between April 2015 and March 2021, with grants available for plug in cars, vans, lorries, buses, taxis and motorcycles, and schemes to support charge point infrastructure at homes and workplaces and on residential streets.

The Road to Zero Strategy was published last year, it sets out a clear pathway to zero emissions, to give clarity and certainty to both industry and motorists.

On 27 June, a new, legally binding, target to reach net zero greenhouse gas emissions by 2050 came into force. This will require ambitious action across the economy building on our Clean Growth Strategy, and carbon capture usage and storage (CCUS) is likely to play a vital role. Our CCUS Action Plan sets out that we will move to deploying CCUS in the 2020s, working in partnership with industry to achieve this.

We are investing over £50 million in CCUS innovation programmes, supporting innovative technologies across the UK between 2017 and 2021. As part of this investment we announced on 27 June that nine companies have secured £26 million of government funding, in addition to industry backing, to advance the rollout of carbon capture, utilisation and storage (CCUS) in the UK - a crucial step towards the UK’s net zero emissions and the end of the UK’s contribution to global warming. It is the next milestone for the Government’s ambition for the UK to be a world-leader in the field as laid out in the Clean Growth Strategy and the CCUS Action Plan.

One company, Tata Chemicals is being awarded £4.2m toward the construction of a facility to capture and utilise 40,000 tonnes of carbon dioxide a year – the equivalent of 22,000 cars. When fully operational in 2021 it will be the largest carbon capture plant in the UK, removing 100 times more carbon dioxide from the atmosphere than the country’s current largest facility.

Our Clean Growth Grand Challenge Mission sets an ambition to establish at least one low-carbon industrial cluster by 2030, and the world’s first net-zero carbon industrial cluster by 2040. The Mission is technology neutral but is focussed on technologies that can be delivered cost-effectively through the use of shared networks, and CCUS is one of the key technologies that could help to deliver the mission. The mission is backed by £170 million public investment through the Industrial Strategy Challenge Fund.

Also supporting the mission, the Industrial Energy Transformation Fund is a £315 million fund aimed at helping industry to transition to a low-carbon future. The fund will help companies cut their energy bills and carbon emissions through investing in energy efficiency and low-carbon technologies. This could include supporting technologies that are strategically important to long-term emissions reductions such as CCUS and Hydrogen.

There are currently 38 Growth Hubs across England, led and governed by Local Enterprise Partnerships (LEPs), providing free and impartial advice and support to anyone wishing to start and a grow a business. At March 2018, Local Enterprise Partnerships have self-reported that since 2015 their Growth Hubs have helped over 26,000 entrepreneurs start their own business.

There are now 1.1 million women-led small and medium-sized businesses in the UK and I want to see that number grow. Access to finance is key area that can support that aim and I am pleased to report that the government-supported Start-Up Loans Company has provided loans worth nearly £436 million to those wishing to start a business, of which nearly 40% have been given to female entrepreneurs at March 2018.

The Department does not carry out cost benefit analysis of early drafts of EU Ecodesign Regulations. Once we see the final version of this regulation before the Regulatory Committee vote in Brussels, where the UK and other Member States will vote on the regulation, we will carry out a cost benefit analysis for the UK but not specific sectors. The Ecodesign proposal for lighting that I assume you are referring to will be voted on in October/November 2018 and we would expect to see a final version one month prior to that.

This Government recognises the importance of our world leading creative and cultural industries, including theatre. Touring is a vital part of performers’ careers, providing not only a vital income stream, but also enriching opportunities for cultural exchange across the world. Being outside the European Union does not change this. It does, however, mean practical changes on both sides of the Channel that will require understanding and adaptation.

UK performers and artists are of course still able to tour and perform in the EU, and vice versa. However, we understand the concerns about the new arrangements and we are committed to supporting the sectors as they get to grips with the changes to systems and processes.

As the Prime Minister has said, we're working flat out with the industry, including through the DCMS-led working group, on plans to support the creative sectors tour in Europe. Through our bilateral discussions with EU Member States, we have established that in at least 17 out of 27 Member States some touring activities are possible without visas or work-permits.

In recognition of the value of the cultural and creative industries - including theatre - at Budget 2021 this government announced an additional £300 million of support in England through the Culture Recovery Fund. This extra funding means that our total support package for culture during the pandemic is now approaching £2 billion. These are unprecedented sums.

There are no current plans to increase the overall amount of the PLR central fund in response to the COVID -19 outbreak or more generally. The British Library administers the PLR Scheme on behalf of the Government and the funding level of the PLR would form part of the consideration of British Library’s overall funding at a future spending review.

The Government supports scriptwriters as part of its broader sectoral support for the film sector, in particular through the approximately £70 million provided annually (including Lottery funding) to our lead agency for film the British Film Institute, and its funded partners. This funding supports screenwriting specific opportunities offered as part of the BFI Film Academy and BFI NETWORK, which invest in the next generation of screenwriting talent.

While the Department has not undertaken such specific research, the global box office performance of UK films and foreign productions which draw on UK source material is a good indicator of the value of scriptwriting. Of the top 200 grossing films released worldwide from 2010 to 2019, 26 are based on stories and characters created by UK writers, and collectively these films have earned $19 billion at the global box office,13% of the total.

There are no current plans to increase the overall amount of the PLR central fund in response to the COVID -19 outbreak or more generally. The British Library administers the PLR Scheme on behalf of the Government and the funding level of the PLR would form part of the consideration of British Library’s overall funding at a future spending review.

On 13 August, the Government announced that indoor play and indoor soft play venues can open from 15 August. We have also been working with BALPPA, the trade body that represents the industry to develop guidance that lays out detailed measures that should be taken by indoor play and indoor soft play operators to make venues COVID-secure. These include closing ball pits and sensory areas, reducing capacity of venues and soft play frames, regular deep cleaning, pre-bookable timed sessions, increased sanitation, and a rigorous process to support track and trace. Sports and physical activity facilities play a crucial role in supporting adults and children to be active and the Government is committed to reopening facilities as soon as it is safe to do so. Since 4 July other indoor facilities, including some indoor games, recreation and entertainment venues have reopened.

As with all aspects of the Government’s response to COVID-19, we continue to be guided by public health considerations to ensure that as restrictions are eased people can return to activity safely.

My officials are working closely with their counterparts in the Foreign and Commonwealth Office and the Department for International Trade to ensure the international interests of the Premier League and other UK sports bodies are protected and promoted around the world. We know that the Premier League is a great soft power asset for the UK, and we will continue to encourage relevant national governments to ensure it receives parity of treatment in all international markets.

The world-class collections in our museums help people understand and participate in our culture and heritage, improve wellbeing, and provide learning, education and research. Museums are supported by public funding worth over £800 million annually to support this access. The UK Government remains committed to free entry to the permanent collections of our 15 DCMS- sponsored national museums ,which in total received around 47 million visits in 2017/18 .Additional projects, through Arts Council England (ACE), aim to improve cultural participation for everyone, regardless of their background. For example, ACE funds Creative People and Places which supports participation in places with traditionally lower engagement with culture. The scheme has just announced 79 new places will be eligible to apply for £24 million of funding in 2019 and 2020, to fund projects until 2023/4.

The information requested can be found on pages 64-67 of the Design Council’s report The Design Economy 2018 which can be found here:

https://www.designcouncil.org.uk/sites/default/files/asset/document/Design_Economy_2018.pdf

We are committed to protecting the IP of our world leading Creative Industries, which is why are continuing to support The "Get It Right" campaign with £2M investment over 3 years. This campaign is part of The Government's Sector Deal which helps educate consumers on the dangers of copyright infringement and directs them towards legitimate sources of creative content online. The HM Ambassador in Riyadh has raised this matter on a number of occasions with Ministers in the Saudi Arabian Government.

We are taking a number of steps to promote cultural diplomacy, working very closely with FCO, the British Council and DIT to ensure that culture is fully integrated into the UK’s diplomatic activities, both at home and in our embassies around the world.

This includes the GREAT campaign, annual Seasons of Culture, formal cultural agreements with other governments, the Cultural Protection Fund and UNESCO cultural conventions. Ministers also undertake regular international visits and hold frequent dialogues with foreign counterparts to strengthen our cultural diplomacy with key partner countries.

DCMS is a leading contributor to the government’s forthcoming Soft Power Strategy, of which culture will be a core part.

We are taking a number of steps to promote UK arts and culture overseas, including through the GREAT campaign, annual Seasons of Culture, formal cultural agreements with other governments and through our membership of UNESCO. Ministers also undertake regular international visits to champion British arts organisations working in other countries and hold frequent dialogues with counterparts from key partner countries.

The department works in close partnership with FCO, the British Council and DIT to ensure the UK culture sector is well supported and promoted by our embassies in countries around the world. DCMS is also a leading contributor to the government’s forthcoming Soft Power Strategy, which is due to be published later this year.

The arts help individuals and communities by bringing people together, encouraging creativity and removing social barriers. This government is committed to supporting and promoting our world class arts and culture to ensure that everyone can engage and participate in them, make places better for people to live,work and visit, and boost the economy.

Government support for arts and culture is primarily provided via the Arts Council England. Government also promotes art and culture through direct support such as the recently launched £20 million Cultural Development Fund, which aims to support towns and cities to grow their local economy through investment in arts, heritage and the creative industries; and the Great Exhibition of the North, a three month event that will will celebrate the great art, culture and design of the North of England, which government has invested over £6 million in.