Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment his department has made of the potential impact the expiry of the Renewables Obligation for LFGTE on 31 March 2027 on local authority finances.

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

Government is aware that Renewables Obligation support for most landfill gas to energy (LFGTE) generators ends in April 2027, and that this could affect their commercial viability

DESNZ’s assessment to date has focused on generator viability, and the potential impacts of retirement on energy security and methane emissions, rather than a separate quantified assessment of impacts on local authority finances.

Government plans to publish the consultation on transitional support for landfill gas generation in due course, and would welcome responses from local authorities. Any future support would be subject to rigorous value-for-money and impact assessments.

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 transitional support for the landfill gas to energy sector will be in place when the Renewables Obligation for LFGTE expires on 31 March 2027.

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

Government is aware that support under the Renewables Obligation (RO) scheme will end for existing landfill gas generators from April 2027, which could affect the commercial viability of these generators.

That is why, as set out in the Carbon Budget and Growth Delivery Plan, Government is exploring the implementation of a long-term methane capture scheme, with suitable transitional arrangements.

DESNZ will shortly consult on these proposals. No final decision has been made, and in assessing the case for any future support, we will consider the outcomes of the consultation process, the economic and environmental impacts, as well as value for money to the taxpayer and billpayer.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential impact of the expiry of the Renewables Obligation for LFGTE on the Methane Action Plan.

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

Analysis published within the Carbon Budget and Growth Delivery Plan indicate that the ending of the Renewable Obligation from 2027 could reduce methane capture at landfills in England from ~54% to ~49% without other measures being put in place. However, under the Methane Action Plan, government is exploring the implementation of a long-term methane capture scheme and will shortly consult on the potential for providing suitable transitional arrangements.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what powers Ofgem has to intervene where heat network prices are considered excessive.

Answered by Martin McCluskey - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)

As the regulator of heat networks, Ofgem have broad powers relating to price regulation. These include powers to investigate and intervene where heat network prices charged to consumers are disproportionate or unfair.

Under Ofgem’s authorisation regime, heat network operators and suppliers are required to charge consumers fairly and guidance has been published on the application of their fair pricing rules.

Heat networks have until January 2027 to register with Ofgem and supply data, including information about pricing. Ofgem will use this to further inform their approach to pricing rules and guidance.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what protections are in place for consumers on heat networks wishing to challenge charges before the completion of the Ofgem authorisation process in January 2027.

Answered by Martin McCluskey - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)

Since the introduction of the heat network regulator, Ofgem rules require operators and suppliers to charge consumers fairly and guidance has been published on the application of their fair pricing rules.

Heat networks have until January 2027 to register with Ofgem and supply data, including information about pricing. Ofgem will use this to further inform their approach to pricing rules and guidance.

We have also introduced statutory consumer advice and advocacy services for heat network consumers since April 2025, including on price. For unresolved disputes, heat network consumers can refer their case to the Energy Ombudsman who can provide statutory redress as part of their Alternative Dispute Resolution scheme.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what his Department's planned timetable is for the full implementation of the heat network regulatory framework.

Answered by Martin McCluskey - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)

Government has introduced statutory redress through the energy ombudsman and statutory advice and advocacy through Citizens Advice and Consumer Scotland for heat network consumers from April 2025. The Department has subsequently introduced Ofgem as the heat network regulator from January 2026. Heat network suppliers and operators have until January 2027 to register with Ofgem and supply data. Ofgem will use this to further develop the regulatory regime including informing their approach to pricing rules and guidance.

The Department have also consulted on mandating minimum technical standards for heat networks, to deliver better outcomes for consumers. A government response will be published in due course.

Found: Affairs Committee members present: Dame Karen Bradley (Chair); Mr Paul Kohler; Robbie Moore; Margaret Mullane