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 risks to national energy security resulting from reduced asset health funding proposed in Ofgem’s RIIO-GT3 Draft Determination.

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

Ofgem, as the independent regulator, are responsible for agreeing the funding and investment allowances for the gas transmission network and gas distribution network. Final decisions regarding the next price control period (RIIO3 – which covers April 2026 - April 2031) will be confirmed by Ofgem before the end of the year.

Through this process, Ofgem has a statutory responsibility to attract investment and maintain security of supply while incentivising efficiency and protecting consumers from excessive costs.

The Department will continue engaging with Ofgem to ensure RIIO-3 delivers the investment needed to maintain energy security through this period. DESNZ launched an Energy Security and Resilience Taskforce with CEOs of critical operators, with Ofgem in attendance, as a key forum to discuss risks and standards.

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 the gas transmission network’s cyber security capabilities if it does not receive adequate funding under Ofgem’s RIIO-GT3 price control.

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

Funding for National Gas Transmission is set by Ofgem’s RIIO (Revenue = Incentives + Innovation + Outputs) framework for each five-year regulatory period. Both the current RIIO-2 framework (covering the 2021-2026 regulatory period) and the draft RIIO-3 framework (which will cover 2026-2030) include a Cyber Resilience UIOLI (‘Use it or lose it’) allowance, providing flexible funding capped at up to 20% of total expenditure for network companies to improve cyber resilience.

While arrangements for RIIO-3 are still being finalised, the framework is expected to include a re-opener enabling National Gas Transmission to request changes to cyber resilience funding during the 2026-2030 price control period.

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 gas transmission network’s potential ability to meet rising electricity demand from AI and data centres if it does not receive adequate funding under Ofgem’s RIIO-GT3 price control.

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

Ofgem, as the independent regulator, are responsible for agreeing the funding and investment allowances for the gas transmission network and gas distribution network. Final decisions regarding the next price control period (RIIO3 – which covers April 2026 - April 2031) will be confirmed by Ofgem before the end of the year.

Through this process, Ofgem has a statutory responsibility to attract investment and maintain security of supply while incentivising efficiency and protecting consumers from excessive costs.

Ofgem advised in their draft determinations for RIIO-3 that funding for projects supporting rising electricity demand, including those driven by AI and data centres, will be considered where appropriate evidence is submitted, and will be confirmed in their final determinations.

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 risk to the UK’s security of energy supply if the gas transmission network does not receive adequate funding under Ofgem’s RIIO-GT3 price control.

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

Ofgem, as the independent regulator, are responsible for agreeing the funding and investment allowances for the gas transmission network and gas distribution network. Final decisions regarding the next price control period (RIIO3 – which covers April 2026 - April 2031) will be confirmed by Ofgem before the end of the year.

Through this process, Ofgem has a statutory responsibility to attract investment and maintain security of supply while incentivising efficiency and protecting consumers from excessive costs.

The Department will continue engaging with Ofgem to ensure RIIO-3 delivers the investment needed to maintain energy security through this period. DESNZ launched an Energy Security and Resilience Taskforce with CEOs of critical operators, with Ofgem in attendance, as a key forum to discuss risks and standards.

Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what discussions he has had with the Department for Energy Security and Net Zero on the potential resilience of energy infrastructure designated as Critical National Infrastructure in the context of Ofgem’s proposed funding reductions in the RIIO-GT3 Draft Determination.

Answered by Dan Jarvis - Minister of State (Cabinet Office)

The Cabinet Office frequently engages with the Department for Energy Security and Net Zero (DESNZ) which is ultimately responsible for the resilience of the energy sector and assessment of Critical National Infrastructure (CNI) against its criticality.

DESNZ works closely with industry counterparts to maintain energy security and ensure industry has the tools at their disposal to support security of supply. As the risk landscape continues to evolve, ensuring high standards of infrastructure resilience and security across the energy sector is a key priority for DESNZ and Ofgem.

DESNZ will continue engaging with Ofgem to ensure RIIO-GT3 delivers the investment needed to maintain energy security and resilience through the price control period.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if he will make a statement on the (a) timing and (b) outcome of the Trade Remedies Authority’s investigation into imports of US-produced Hydrotreated Vegetable Oil (HVO) and set out the steps his Department is taking to ensure that UK biodiesel producers are not placed at a competitive disadvantage resulting from unfair trading practices.

Answered by Chris Bryant - Minister of State (Department for Business and Trade)

The Trade Remedies Authority is the UK’s independent arms-length body responsible for the conduct of trade remedy investigations. They make recommendations to the Secretary of State as to whether any such measures should be introduced.

On 17 March 2025 the Trade Remedies Authority initiated a subsidy investigation on the import of HVO Biodiesel of US-origin. As the investigation remains ongoing, I cannot comment further. The TRA will publish relevant information on the public file as the review progresses.

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 merits of including hydrogenation and dehydrogenation projects within the Liquid Organic Hydrogen Carriers eligible for funding through the Net Zero Hydrogen Fund.

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

The Net Zero Hydrogen Fund was designed to bring forward the first UK low carbon hydrogen production projects, and was not intended to support other parts of the hydrogen value chain such as hydrogen carriers. It made its final funding allocations in 2023.

Found: TQ14 9RZ, Mr Graham Stuart and Mrs Sue Stuart: environmental permit application advertisement - EPR/MP3226LJ

Found: 1 Email to: The Rt Hon Graham Stuart MP The Department for Energy Security and Net-Zero