Harriet Cross

The Government is working to create a CCUS industry and has provided increased support to UK CCUS by allocating £9.4 billion in capital budgets over the Spending Review period.

The Government has announced its support for the Acorn (Scotland) and Viking (Humber) clusters and is providing the development funding to advance their delivery. A final investment decision (FID) will be taken later this Parliament, subject to project readiness and affordability.

The Government is actively engaging industry on key enabling CCUS policies to ensure we can build the longer-term pipeline of projects that in turn will grow the economy, contribute to the Clean Power Mission and is done at lowest cost to reach Net Zero.

The Government recognises that non-pipeline methods of CO₂ transportation (for example, road, rail, barge and ship) will play an integral role in achieving decarbonisation across multiple regions and sectors of the economy, to meet our carbon budget targets and net zero carbon emissions by 2050. Non-pipeline transport (NPT) will be required where it is not technically or economically feasible to connect to a CO₂ storage sites via a pipeline.

The Government intends to publish an NPT consultation later this year which will include seeking views on support for NPT costs, risk allocation and economic licensing.

The suppliers that offshore wind projects use are a commercial decision for the company involved. As an open economy, we welcome foreign trade and investment, including from China, where it supports growth and jobs in the UK, meets our stringent legal and regulatory requirements, and does not compromise our national security.

On 7^th May 2025, the Secretary of State met with Minister Aasland, his Norwegian counterpart, on the occasion of signing a Green Industrial Partnership with the Norwegian Government. This recognised the importance of continued collaboration on Carbon Capture Usage and Storage (CCUS), including a commitment to initiate work to identify gaps and challenges to the development of our common North Sea as a hub for carbon storage. Sharing knowledge from current projects, including the Northern Lights CCS project, will play an important role.

Our recently published Industrial Strategy: Clean Energy Industries Sector Plan emphasised how the UK’s favourable geology offers capacity to safely store up to 78 billion tonnes of CO₂ and the potential to offer international CO₂ storage services. Non-pipeline transport, especially the transport of CO₂ via ship, will help maximise this geological potential.

Details of Ministers’ meetings with external individuals and organisations are published quarterly in arrears on GOV.UK.

The Government has committed to maintaining existing fields for their lifetime. Earlier this year, the Government consulted on ‘Building the North Sea’s energy future’, including proposals not to issue new licences to explore new fields and to partner with business and workers to manage existing fields for their lifespan. A Government response to the consultation will be published in due course.

Oil and gas production efficiency is monitored by the North Sea Transition Authority (NSTA). The NSTA publishes a UK Continental Shelf Production Efficiency dashboard on its website

The Department does not hold its own estimates for the offshore or onshore North Sea oil and gas sector workforce. According to ONS data[1], direct jobs in oil and gas extraction fell by around a third between 2014 and 2023, despite ongoing domestic licensing and production.

As Britain becomes a clean energy superpower, the Government is determined to create new high-quality jobs to ensure a phased and responsible transition in the North Sea.

This is vital for delivering the best outcomes for workers and communities, energy security, and sustainable economic growth.

[1] ONS Business Register and Employment Survey

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/industry235digitsicbusinessregisterandemploymentsurveybrestable2(opens in a new tab)

The Department does not record daily electricity demand or import data. Half-hourly figures for electricity demand and import for Great Britain’s public distribution system are available from the National Energy System Operator (NESO) data portal. Quarter-hourly figures for Northern Ireland’s electricity demand from the public distribution system are available from EirGrid.

The National Energy System Operator (NESO) is responsible for operating Great Britain’s electricity system, which includes managing constraints. The NESO publishes daily constraint costs here: Constraint Breakdown Costs and Volume | National Energy System Operator. Data is not available on the split of costs between different types of generators.

Constraints are a natural part of operating an efficient electricity system and electricity systems around the world use the constraint payment model. Government is working to reduce constraints and enable a more secure energy system by accelerating the build of electricity network infrastructure to increase capacity.

The Low Carbon Contracts Company (LCCC) publishes this data. It is available here:

https://dp.lowcarboncontracts.uk/dataset/imrp-actuals

According to Ofgem’s annual publication, GB has eight gas storage sites with a combined maximum capacity of 3.2bcm – around 13 days of average (24/25) winter gas demand – and maximum deliverability of ~123mcm/day.

Gas storage is an effective source of system flexibility to supplement GB's supply sources from the UK and Norwegian Continental Shelves, LNG terminals and interconnectors. Storage can be used to respond to short-run changes in supply and demand or during cold winter months to help meet demand peaks. In winter 24/25, gas storage provided ~9% of the total gas used in GB.

The Government continues to work with storage operators and regulators, to explore options around the role storage can play in supporting future system resilience in a changing gas landscape.

There are a variety of factors beyond the publication of the guidance that will influence a developer’s decisions on whether to proceed with a project, so it is therefore difficult to predict the exact number of projects waiting to commence the environmental impact assessment process.

We remain committed to having the supplementary Environmental Impact Assessment guidance in place as soon as possible and are cognisant of its importance for providing certainty to the offshore oil and gas industry. We needed to take the time to analyse the consultation responses thoroughly and to reflect them in the finalised guidance which must be robust. Once the guidance is published, assessments of environmental statements can resume.

The Government is committed to CCUS, which will decarbonise power and industry in a way that drives growth, supports thousands of jobs, and could add £5 billion of value annually by 2050. Decisions over the continued deployment of CCUS, building on the HyNet and East Coast Cluster, will be taken as part of the Spending Review, including the potential for deployment in Scotland through the Acorn cluster.

We have also established the National Wealth Fund, part of which will focus on key energy sectors, including CCUS, addressing barriers to investment and strengthening the entire value chain.

Neither the Secretary of State nor I will be commenting on the specifics of individual projects to avoid potentially prejudicing any future regulatory decisions the Secretary of State is required to make in relation to these projects. We remain committed to having the supplementary Environmental Impact Assessment guidance in place as soon as possible. Once it is published, assessments of environmental statements can resume.

Neither the Secretary of State nor I will be commenting on the specifics of individual projects to avoid potentially prejudicing any future regulatory decisions the Secretary of State is required to make in relation to these projects. We remain committed to having the supplementary Environmental Impact Assessment guidance in place as soon as possible. Once it is published, assessments of environmental statements can resume.

To ensure Great British Energy can begin delivering quickly once the Parliamentary process has been completed, the Department for Energy Security and Net Zero (DESNZ) has taken steps to assign resource including the appointment of Juergen Maier to the role of start-up chair for Great British Energy, Dan McGrail as interim CEO, and five start-up non-executive directors. Additional DESNZ resource has been assigned to Great British Energy, focusing on a small number of essential roles.

Once Great British Energy is formally established by the Bill, work will begin to fully resource Great British Energy.

CCUS requires significant resources, and it is right that it is considered within the Spending Review. We continue to engage at both working and ministerial level with all future projects, including Track-2, and further decisions for future CCUS deployment will be taken in due course.

Developers prepare a thorough and comprehensive environmental assessment in preparation for the planning process. This is then subject to careful scrutiny by the Planning Inspectorate and during the decision-making stage, by the Secretary of State, for nationally significant energy projects considered under the Planning Act 2008. Local planning authorities do the same for those developments considered under the Town & Country Planning Act 1990. All of the issues listed, and many more, are routinely considered as relevant planning considerations, and are set out in the published Decision Letter for development consent decisions.

The Energy Skills Passport, launched in January, is designed to help oil and gas workers transition into clean energy sectors like offshore wind. In phase two, we are exploring opportunities to expand it into other clean energy sectors such as CCUS and Hydrogen. The RGU estimates the offshore renewables workforce, which includes offshore wind, CCS, and hydrogen, could increase to between 70,000 and 138,000 in 2030 creating opportunities for skilled workers as the sector matures. Further decisions for future CCUS deployment, including in the Scottish Cluster, will be taken in due course. As the Energy Skills Passport develops, we will continue working with industry to expand its scope, ensuring it effectively supports workers moving into emerging clean energy sectors.

The Office for Clean Energy Jobs is engaging widely with industry experts, and trade unions for a clear assessment of the skills opportunities and challenges. It is working closely with Skills England to ensure that skills systems reforms support the clean energy transition. It has recently launched the initial version of the Energy Skills Passport to support oil and gas workers into new roles in the clean energy sector.

In phase two, we are exploring opportunities to expand it into other clean energy sectors such as CCUS. CCUS could support up to 50,000 jobs as the sector matures into the 2030s.

The government is also transforming the existing Apprenticeship Levy into a growth and skills offer which will allow employers to invest in a wider range of training.

The Department attends the Industry Taskforce on the Radio Teleswitch Service, which was convened by Ofgem last year and is led by Energy UK.

The Taskforce involves all major energy suppliers and is working with consumer groups, local authorities, housing associations and other key stakeholders to urgently ramp up efforts to replace the remaining RTS meters in Great Britain before the service ends.

Ofgem is responsible for regulating energy suppliers against their licence obligations. Ofgem have been clear that they expect energy suppliers to arrange a suitable replacement metering solution for their customers with RTS meters in a timely manner ahead of the switch off to avoid a disruption to their service.

Ofgem is consulting on new licence conditions which will seek to ensure consumers are treated fairly and have access to an alternative metering arrangement following the cessation of RTS. The consultation ends on 11 March and is available here: https://www.ofgem.gov.uk/consultation/radio-teleswitch-service-rts-electricity-supply-licence-changes

In the few circumstances where a supplier may not currently be able to install a smart meter, Ofgem has been clear that the supplier is obligated under their licence conditions to ensure that a suitable metering system is offered and that the customer's heating and hot water service is not disrupted.

The Industry-led Radio Teleswitch Service Taskforce is investigating with energy suppliers the volume and costs of any additional works that may be required for Total Heating Total Control systems. Energy suppliers are best placed, and responsible for, advising their customers.

Ofgem has been clear that suppliers must take all reasonable steps to ensure former RTS consumers stay on a closely equivalent tariff.

Ofgem is also consulting on plans to introduce new RTS specific licence conditions for energy suppliers, which include a proposal that would require energy suppliers to take all reasonable steps to provide a tariff that leaves their customers ‘no worse off’ than previously once their RTS meter is replaced. The consultation closes on 11 March and is available here: https://www.ofgem.gov.uk/consultation/radio-teleswitch-service-rts-electricity-supply-licence-changes

The Department does not hold the data requested, but when each individual planning decision is made, the information about the extent and grade of any agricultural land being utilised is set out in as part of the published decision.

The revised National Planning Policy Framework, which was published on 12 December 2024, is clear that where significant development of agricultural land is demonstrated to be necessary, areas of poorer quality land should be preferred to those of a higher quality. This will, where relevant, be a material consideration in planning decisions, including those made by the Secretary of State.

ECO4 funding is not released through a tranche system. The scheme sets a legal obligation on energy suppliers, and this is divided between energy suppliers based on their respective shares of the domestic gas and electricity market. Energy suppliers are permitted to deliver their obligation at their preferred pace over the life cycle of the scheme, between April 2022 and March 2026. The total value of ECO4 is £4 billion. This breaks down to £1bn a year for the four years of the scheme.

Households with existing underfloor foam insulation may be eligible for Energy Company Obligation 4 (ECO4) scheme support if they meet scheme eligibility criteria. Homes equivalent to Energy Performance Certificate (EPC) bands D-G, for owner occupied households, and bands E-G for privately rented homes and social housing, where occupants are in receipt of means-tested benefits, are eligible for the scheme, as well as those referred by their local authority under ECO Flex. However, meeting the eligibility criteria does not guarantee assistance. This is determined by obligated suppliers and the installers to whom they sub-contract.

ECO4 is not a Government funded scheme, but a legal obligation placed on energy suppliers to delivery energy efficiency support to eligible households. The obligated suppliers fund the upfront costs of those installations and recoup the funds through their domestic consumers’ energy bills under the energy price cap.

The legal obligation is divided across energy suppliers and based on their respective shares of the domestic gas and electricity market. Energy suppliers are permitted to deliver their obligation at their preferred pace throughout the scheme. The total value of ECO4 is £4 billion across the four years of the scheme.

The Office for Clean Energy Jobs (OCEJ) has been created to ensure that clean energy jobs are abundant, high quality, paid fairly, and have favourable terms and good working conditions. The OCEJ is engaging widely with industry, experts, and trade unions for a clear assessment of the skills opportunities and challenges.

The Office has worked with industry and Scottish government to launch a ‘skills passport’ in January, to help oil and gas workers access opportunities in clean energy jobs – initially helping to identify routes into several roles in offshore wind. CCUS could support up to 50,000 jobs as the sector matures into the 2030s, creating opportunities for skilled workers. Further decisions for future CCUS deployment, including in the Scottish Cluster, will be taken in due course.

Where a household is one of the 0.7% of premises in Great Britain without Wide Area Network (WAN) coverage, energy suppliers can provide pre-configured smart meters, which operate like analogue meters, until a WAN connection can be established.

The Office for Gas and Electricity Markets (Ofgem) has been clear that energy suppliers are obligated under their licence conditions to ensure that a suitable metering system is installed, and that the customer's heating and hot water is not disrupted.

The Radio Teleswitch Service (RTS) is an industry-led initiative, with the switch-off being overseen by the energy industry, Energy UK and Ofgem. I recently met with Ofgem and Energy UK to discuss plans for the switch-off. I will continue to meet them regularly to track progress.

Ofgem and Industry have convened a Taskforce involving energy suppliers, network operators, consumers groups and the Government, to coordinate activities to rapidly increase the pace of RTS replacements. A new campaign has launched highlighting the need for RTS customers to book a meter replacement as soon as their energy supplier contacts them.

The Department is aware of the complexity of a Total Heating Total Control (THTC) metering system and the tariff requirements of customers with such a system installed. Energy suppliers are best placed to advise on suitable replacement systems and tariffs for their customers, and Ofgem has been clear that suppliers must take all reasonable steps to ensure former RTS consumers stay on a closely equivalent tariff.

The Government has made a number of spending commitments since July to deliver the UK’s pledge, announced in 2019, to spend £11.6 billion in International Climate Finance (ICF) between April 2021 and March 2026. The £11.6 billion commitment is from the UK’s Official Development Assistance budget, currently set on a temporary basis at 0.5% per cent of Gross National Income.

The Government recognises that too many households across GB are currently unable to send automatic readings to their energy suppliers, including meters without access to WAN coverage. We will set out new plans to improve the rollout and the consumer experience, alongside Ofgem, in due course.