Grant Shapps

As of 31^st December 2016, in Great Britain, there were 4.4 million domestic time of use (Economy 7 type meters). Of these, BEIS estimate that there were around 3.1 million domestic customers on Economy 7 or 10 tariffs.

While a number of suppliers are offering time of use and other innovative tariffs enabled by smart metering and elective half-hourly settlement, we do not have information on the number of domestic customers on these types of tariffs.

As of 31^st December 2016, in Great Britain, there were around 500,000 non-domestic profile 4 Economy 7 type meters (used by small non-domestic customers). However some properties with Economy 7 meters will be on single rate tariffs.

Source:

An estimate for the number of Economy 7 meters in Great Britain can be found here:

https://www.gov.uk/government/statistical-data-sets/regional-and-local-authority-electricity-consumption-statistics

The rollout of smart meters is making good progress, with nearly 440,000 meters being installed every month and a total of 10 million meters already operating as of 31 December 2017.

As of the end of January 2018, industry information showed there were around 450 SMETS2 meters connected to the DCC system. Most of these were being operated in test conditions and around 80 had been installed in the live environment.

Smart metering will give consumers the tools they need – through access to energy consumption data – to take control of their energy use. Consumers can start saving energy from the moment their smart meter is installed. In a recent survey Smart Energy GB found that 86% of people with a smart meter said they made energy saving changes to their behaviour.

Suppliers have a strong incentive to keep costs down. If suppliers do not deliver the programme cost-efficiently, they risk losing customers to their competitors.

Smart meters will help improve engagement and competition. The Programme will give households the information to allow them to be more active consumers and more easily act upon poor service of expensive tariffs, by being able to switch suppliers quickly and simply.

Ahead of that, the Government is introducing legislation to cap poor value standard variable and default tariffs.

As of 30^th September 2017, there were over 8.6 million smart and advanced meters operating across homes and businesses in Great Britain, by both large and small energy suppliers. Of those, around 7.7 million were smart meters and around 0.89 million were advanced meters.

The Government publishes quarterly reports on the number of smart electricity and gas meters installed in Great Britain as part of its Smart Meters statistics collection. As part of each statistical release, a breakdown by meter type is provided:

https://www.gov.uk/government/collections/smart-meters-statistics.

Energy suppliers’ licence conditions require them to take ‘all reasonable steps’ to roll-out smart meters to all their domestic and small business customers by 31 December 2020. Ofgem is responsible for regulating energy suppliers against this obligation.

Ofgem will make decisions on whether to take action against energy suppliers that do not comply with their smart meter obligations in line with their Enforcement Guidelines. This is consistent with the approach taken on any other regulatory breaches by energy suppliers. A number of factors are taken into account including customer detriment. Ofgem’s Enforcement Guidelines are available here: https://www.ofgem.gov.uk/publications-and-updates/enforcement-guidelines

Energy suppliers’ licence conditions require them to take ‘all reasonable steps’ to roll-out smart meters to all their domestic and small business customers by 31 December 2020. Ofgem is responsible for regulating energy suppliers against this obligation.

Ofgem will make decisions on whether to take action against energy suppliers that do not comply with their smart meter obligations in line with their Enforcement Guidelines. This is consistent with the approach taken on any other regulatory breaches by energy suppliers. A number of factors are taken into account including customer detriment. Ofgem’s Enforcement Guidelines are available here: https://www.ofgem.gov.uk/publications-and-updates/enforcement-guidelines

The Government is committed to ensuring that all homes and small businesses are offered smart meters by the end of 2020. The Programme is well underway, there are now over 8.6 million smart and advanced meters operating across homes and businesses across Great Britain with around 400,000 being installed every month. The rollout of smart meters is on track to deliver significant benefits, including putting an end to estimated bills, and is set to save consumers £300m in 2020 alone.

Energy suppliers are responsible for planning and delivering the roll-out of smart meters, working within the legal framework established by the Government. Energy suppliers’ licence conditions require them to take ‘all reasonable steps’ to roll-out smart meters to all their domestic and small business customers by 31 December 2020. Ofgem is responsible for regulating energy suppliers against this obligation.

It is estimated there are currently around 400,000 meters being operated by large suppliers in ‘traditional’ mode.

There were more than 8.6 million smart and advanced meters operating in Great Britain, in ‘smart mode’, as of 30 September 2017.

The Data and Communications Company (DCC) will move SMETS1 meters into its national system, starting later this year, so that all consumers can keep their smart services when they switch energy supplier, regardless of which generation of meter they have installed.

Energy suppliers are responsible for planning and delivering the roll-out of smart meters, working within the regulatory framework established by the Government. Energy suppliers’ licence conditions require them to take ‘all reasonable steps’ to roll-out smart meters to all their domestic and small business customers by 31 December 2020. Ofgem is responsible for regulating energy suppliers against this obligation and assessing the adequacy of smart meter roll-out plans submitted to them by energy suppliers.

The Consumer Green Paper will tackle areas where markets are not working well for consumers.

The Government is aware that doorstep selling can be regarded as a nuisance but it is a legitimate form of trading, provided all the legislation regulating the practice is observed.

The Government has no plans to regulate further in this area; the unfair trading or criminal activities of rogue traders are already subject to consumer protection and other criminal statues, and the enforcement authorities have adequate powers to see that the law is applied where there is evidence of wrong-doing.

The need or case for setting up No Cold Calling Zones is a local matter.

The Government assessed the Sunday Trading Act previously and sought to change the rules last year by providing a power so that local authorities could take decisions on extending Sunday trading hours locally.

Parliament decided not to support those proposals and the Government has no plans to bring forward further legislation at this time.

The Government sought to change the rules last year by providing a power so that local authorities could take decisions on extending Sunday trading hours locally.

Parliament decided not to support those proposals and the Government has no plans to bring forward further legislation at this time.

The latest manufacturing Purchasing Managers’ Index survey shows new export orders increasing for the ninth successive month.

Data from the Office for National Statistics show that manufacturing output increased by 1.2% in the three months to December compared to the three months to September, and that the volume of exports increased by 7.1% over the same period.

We are not complacent and we know that promoting trade delivery is more important than ever for the UK: the creation of the Department for International Trade (DIT) demonstrates clearly that the Government is committed to promoting international trade and investment in manufacturing.

The economic impact of shale both locally and nationally will depend on how far shale development is technically and commercially viable, and on the level of production reached. A thriving shale industry could involve a wide range of local jobs, in construction supply, transport, facilities support and consultancy. Shale gas development would in turn support jobs in sectors such as the chemical industry, much of which relies on natural gas as a feedstock.

The Government believe it is important that communities which host shale development see a share of the economic benefits. To ensure that this happens, a community benefits package has been brought forward by industry. The Government has also announced that it will create a Shale Wealth Fund to ensure that communities which host shale sites can also share in the wider benefits of shale development.

As set out in the Industrial Strategy green paper, the Government will set out in 2017 a long-term roadmap to minimise business energy costs. We are already taking a range of measures to protect industry from the risk of competitiveness impacts and carbon leakage – where emissions are exported to other countries - due to energy and climate change policy.

This includes a package of relief for energy intensive industries (EIIs), such as steel and chemicals, whose competitiveness may be impacted by the effect of energy and climate change policies on electricity costs.

In addition, under the EU Emissions Trading System, carbon allowances are allocated for free to sectors judged at risk of carbon leakage because of their high carbon and trade intensity.

The Government will respond to the House of Lords Economic Affairs Committee’s report in due course.

The Contract for Difference negotiations are commercially sensitive and I cannot comment on the specifics of the developer’s latest proposals.

The commissioning date of the proposed project is a matter for the developer. It would be dependent on a range of factors outside the control of Government, including the securing of all necessary regulatory permissions. It would also be subject to the successful conclusion of any Contract for Difference negotiation and state aid clearance.

The Government is considering the findings of the independent review and will decide, in light of the relevant factors, whether or not to proceed with the negotiation of a Contract for Difference (CfD) for the proposed Swansea Bay Tidal Lagoon project.

As with all low carbon electricity projects, funding arrangements for the development and construction of individual projects are matters for the developer.

Government is currently considering the issues which would arise from a broader lagoon programme as part of its overall assessment of the Hendry Review. A Government response to that review will be published in due course.

The Government is currently considering the recommendations set out in the Hendry Review, including its assessment of site location for tidal lagoons. The proposed Swansea Bay project is the only project which has received a Development Consent Order. The Hendry Review considers other possible sites; none of these have entered the planning process.

A Government response to the Hendry Review will be published in due course.

If a generator is curtailed by the National Electricity Transmission System Operator (NETSO – currently National Grid in England) compensation is provided to that generator under current market arrangements. The Hinkley Point C Contract for Difference provides protection if these market arrangements were to change and the generator is left worse off as a result of such curtailment.

It is the responsibility of developers to consult with local communities at the pre-application stage of proposals for nationally significant energy infrastructure which require development consent under the Planning Act 2008.

Applications for such projects are examined by the Planning Inspectorate which reports with its recommendation to my Rt Hon Friend the Secretary of State for Business, Energy and Industrial Strategy, who will then decide whether or not to grant development consent.

The Secretary of State will take into account the community consultations carried out by the developer in reaching his decisions on whether or not to grant development consent but it would not be appropriate for the Department to comment on those consultations at the pre-application stage in the process.

It is up to the developer to decide on what highway infrastructure improvements to facilitate construction traffic to the site it wishes to include in its application after giving proper consideration to the responses it receives to its pre-application consultation. The developer is currently consulting on a number of proposals linked to Sizewell C – with the consultation period running from 23rd November 2016 through to 3rd February 2017. Funding of highway infrastructure to be included in an application for development consent for Sizewell C would be a matter for the developer to consider.

Since 2000 there has been one proposal put forward for a development consent order for a new nuclear power station at Hinkley Point C.

EDF has a strong incentive to build Hinkley Point C on time (i.e. by 2025) because of the loss of expected revenues after that time if not.

If EDF does not start generating four years after 2025, then there will be reductions to the contract term; this means that for every day that HPC is late, the period of time where EDF gets increased certainty on the price of its electricity will be reduced.

If HPC is not generating electricity by 2033, there is an option in the contract to cancel the contract. Finally, EDF will pay any extra costs if the cost of building the plant goes over budget.

Genetically Modified Organism (GMO) research is funded by the Government through a number of channels, including the Research Councils and Innovate UK.

The Research Councils welcome applications supporting any aspect of their research portfolio. Applications are subject to peer review and judged in open competition, with awards made on the basis of the scientific quality of the proposals made. Research proposals in all areas, including GMO research, compete for funding available from the Research Councils.

Innovate UK supports industry-led translational research in this field on a project by project basis. All project applications are independently assessed with only the most high quality and innovative proposals securing funding. Potential future investments in the translation and development of GMO technologies will be made on this basis.

The Capacity Market enables us to buy energy in advance and is designed to ensure that families and businesses have access to secure, affordable energy supplies they can rely on.

As the Capacity Mechanism is a series of auctions, prices are subject to strong competition and the costs depend on the auctions’ clearing prices. The two principal auctions held so far have secured capacity needed for 2018/19, and for 2019/20, at costs in those years of around £980m and £830m respectively (2015 values). This equates to gross household bill impacts of around £10 per year, but this figure will be significantly offset when reduced wholesale price spikes are taken into account. Estimates made at the time of the introduction of the Capacity Market in 2014 suggested it would add only £2 net per year to a typical household energy bill on average over the long-term.

To improve the Department’s understanding of the impacts of individual electricity generation technologies, Frontier Economics were commissioned to develop a comprehensive framework to define whole system impacts and their components and drivers, which can be applied to a range of electricity generation technologies. The resulting methodology report and its peer reviews will be published in due course.

The Government has set out its plans for the sale of the Green Investment Bank (GIB) in the document “Green Investment Bank: sale of shares” laid before Parliament on 3 March 2016.

As stated in that document, the Government has asked potential investors to confirm their commitment to GIB’s green values and investment principles and how they propose to protect them, as part of their bids for the company. In addition, the Government has approved the creation of a special share to protect GIB’s green purposes in future.

The Government has set out its plans for the sale of the Green Investment Bank in the document “Green Investment Bank: sale of shares” laid before Parliament on 3 March 2016. This includes the Governments objectives for the sale.

The Government launched the sale process on 3 March 2016 and expects it to be complete before the end of the financial year.

The Government has set out its plans for the sale of the Green Investment Bank (GIB) in the document “Green Investment Bank: sale of shares” laid before Parliament on 3 March 2016.

As stated in that document, Government intends to sell a majority of GIB, with the final size of the stake in GIB to be sold depending on the outcome of confidential commercial discussions with investors and driven by what best achieves our objectives for the sale, particularly ensuring value for money for the taxpayer.

The Government has set out its plans for the sale of the Green Investment Bank in the document “Green Investment Bank: sale of shares” laid before Parliament on 3 March 2016.

One of the primary objectives of the sale is to achieve value for money for the taxpayer. The revenue from the sale will depend on the outcome of discussions with investors, which are commercially confidential at this stage.

Before shale operations begin, it is important that a developer is required to obtain all the necessary permissions, including planning and environmental permits.

The UK has an effective planning system to consider and scrutinise unconventional oil and gas developments. On 16 September 2015, the Government published a joint Written Ministerial Statement[1] to make the planning system faster and fairer for those affected by new development, recognising that no one benefits from uncertainty caused by delay. We will keep the regulatory regime for shale under review as the industry develops to ensure it is proportionate and fit for purpose.

[1] http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2015-09-16/HCWS202/

Renewables subsidies are estimated to account for around 6% of an average household dual fuel bill of £1,029 in 2016.*

* Source: National Audit Office analysis of Department of Energy & Climate Change data, July 2016. Figures in real 2011/12 prices.

As the Government stated at the outset of the competition, the intention of Phase One was to gauge market interest among global market actors in developing, commercialising and financing Small Modular Reactor Competitions in the UK. The evidence gathered during Phase One is being used to inform policy decisions, including the design of any future stages of the competition. Given that Phase One is still continuing, I am not able to provide any further information at this stage.

The Government listed those sites potentially suitable for the deployment of new nuclear power stations in the National Policy Statement for Nuclear Power Generation:

www.gov.uk/government/uploads/system/uploads/attachment_data/file/47859/2009-nps-for-nuclear-volumeI.pdf.

The draft National Policy Statement and list of potentially suitable sites underwent wide public consultation, including engagement with those local communities potentially affected by proposals, as well as parliamentary scrutiny before being designated in 2011.

Since launching the first phase of the competition in March, we have been exploring the potential of different Small Modular Reactor (SMR) designs and routes to commercialisation. In doing so we have drawn on the findings of the independent Techno-Economic Assessment, the Phase One expressions of interest documents, the meetings held by officials over the summer with 32 technology vendors, service providers and potential investors, and our continuing discussions with regulators. This evidence is being used to inform the future of the competition. The timings for any future competition phases is being kept under review, in line with wider SMR policy development.

At the time of the competition launch, it was announced as part of the Guidance for the Small Modular Reactor competition that we envisaged Phase One lasting until autumn 2016. We are not working to a specific date.

As stated in the published Guidance, the objective of this initial phase was to inform the development of government policy and the design of any subsequent competition stages, by gauging market interest in developing, commercialising and financing Small Modular Reactors in the UK. As such, a cost assessment has not been undertaken.