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 impact of Ofgem’s RIIO-GT3 Draft Determinations on energy security.

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

DESNZ works closely with the energy sector 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 the Department and Ofgem.

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

For example, DESNZ recently launched an Energy Security and Resilience Taskforce with CEOs of critical operators, with Ofgem in attendance, which will be 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 recent discussions his Department has had with Ofgem on ensuring that critical national infrastructure is adequately protected against evolving cyber threats.

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

DESNZ works closely with Ofgem through the Energy Cyber Quad – a strategic partnership comprising DESNZ, Ofgem, the National Energy System Operator and the National Cyber Security Centre. The partnership focuses on strengthening cyber resilience across the energy system, ensuring a coordinated responses to evolving threats.

DESNZ recently launched a new Energy Security and Resilience Taskforce with CEOs of critical operators, with Ofgem in attendance, which will be a key forum going forward to discuss threats.

DESNZ is also joint Competent Authority with Ofgem under the Network and Information Systems Regulations, driving cyber resilience standards for our most critical operators.

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 ensure Ofgem’s RIIO-GT3 Final Determination adequately reflects the UK’s statutory energy security requirements.

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

DESNZ works closely with the energy sector 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 the Department and Ofgem.

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

For example, DESNZ recently launched an Energy Security and Resilience Taskforce with CEOs of critical operators, with Ofgem in attendance, which will be 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 guidance he has issued to Ofgem during the RIIO-GT3 process to ensure that operators of Critical National Infrastructure can meet the Government's resilience and security standards.

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

DESNZ works closely with the energy sector 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 the Department and Ofgem.

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

For example, DESNZ recently launched an Energy Security and Resilience Taskforce with CEOs of critical operators, with Ofgem in attendance, which will be 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 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.