Richard Thomson

Ofgem first consulted on protecting customer credit balances in October 2019 (https://www.ofgem.gov.uk/publications/supplier-licensing-review-ongoing-requirements-and-exit-arrangements).

The Department has not estimated the value of customer credit balances that have been mutualised. Ofgem approves claims for the recovery of the costs under the Supplier of Last Resort levy.

On 14 April 2022 Ofgem published an open letter outlining proposals to further tighten protections against the financial instability of suppliers, including preventing the use of customer credit balances as working capital.

On 14^th April, Ofgem published an open letter outlining proposals to further tighten protections from any financial instability of suppliers, including preventing the use of customer credit balances as working capital. Ofgem plans to conduct a statutory consultation on ringfencing customer credit balances later in the spring of this year. They also plan a consultation on policy options related to capital adequacy.

The Acorn Project is the reserve cluster in Track-1 of the Carbon Capture, Usage and Storage Cluster Sequencing process. The Government has continued to engage with the cluster to help it continue its development and planning, and has allocated the project more than £40m in development funding in recent years.

The Government intends to bring forward a process to facilitate the deployment of additional ‘Track-2’ clusters.

The Heat and Buildings Strategy was published on 19^th October.

As set out in the UK Hydrogen Strategy, published in August 2021, current evidence suggests the UK hydrogen economy could support over 9,000 jobs by 2030 – and up to 100,000 jobs by 2050. Estimates, including those related to specific locations and production types, will improve over time as the project pipeline for both CCUS-enabled and electrolytic hydrogen develops. The UK wide Hydrogen Strategy is clear that the Government expect, to see support economic benefits across the Union and the industrial heartlands.

The carbon capture, usage and storage (CCUS) industry could support £4.3 billion in GVA and 48,000 jobs per annum by 2050. Deploying CCUS clusters from the 2020s will be a strong enabler for UK exports globally, building UK CCUS expertise and driving international demand for UK CCUS goods and services.

The North Sea Transition Deal recognises that the upstream oil and gas workforce has the transferrable skills needed to support the energy transition, including the development of a hydrogen economy. The Deal supports the work of the Energy Skills Alliance, which aims to prepare the energy industry to meet the future demand for skills in new technologies. The Deal also contains a commitment for OPITO, the sector skills body, to develop an integrated people and skills plan with measurable objectives, by March 2022, to support the sector’s diversification. The Government Net Zero Strategy, recently published, further commits to reform the skills system, so that training providers, employers and learners are incentivised and equipped to help deliver our net zero aims.

Following a methodology pilot phase in 2016 to 2018, BEIS commissioned a consortium led by Vivid Economics to provide analysis on future energy innovation needs. The work, and the suite of reports, is referred to as the Energy Innovation Needs Assessments (EINAs).

As set out in the Government’s landmark Net Zero strategy carbon capture usage and storage industry could support up to 54,000 jobs across the UK by 2030.

Information in Phase 1 submissions has been used to identify those clusters to be sequenced onto Track-1 for deployment in the mid-2020s. This will be subject to negotiations to determine whether they represent value for money to the taxpayer and affordability considerations. Deviations from benefits presented in Phase 1 submissions will be considered within this process.

Any agreements to provide government support will require regular reporting on benefits by recipients and BEIS will ensure to follow best practice in government monitoring and evaluation requirements.

Through the landmark North Sea Transition Deal, the sector committed to voluntary, industry-led UK content targets for related new energy projects and decommissioning as well as for locally provided technology. The sector is considering how it will meet these targets and this month has appointed an Industry Supply Chain Champion, Sian Lloyd-Rees, to raise the profile of the UK’s energy supply chain capability. BEIS regularly engages with the Scottish Government alongside industry and regulators through the Deal Delivery Group and North Sea Transition Forum to discuss all aspects of the delivery of the Deal. The Oil and Gas Authority, as the independent regulator, will monitor the voluntary supply chain targets utilising existing tools such as their Supply Chain Action Plans.

Information in Phase 1 submissions has been used to identify those clusters to be sequenced onto Track-1 for deployment in the mid-2020s. This will be subject to negotiations to determine whether they represent value for money to the taxpayer and affordability considerations.

Through the North Sea Transition Deal, the sector committed to voluntary, industry-led UK content targets for related new energy projects and decommissioning as well as for locally provided technology. The sector is considering how they will meet these targets and this month have appointed an Industry Supply Chain Champion, Sian Lloyd-Rees, to raise the profile of the UK’s energy supply chain capability. BEIS regularly engages with the Scottish Government alongside industry and regulators through the Deal Delivery Group and North Sea Transition Forum to discuss all aspects of the delivery of the Deal. The Oil and Gas Authority, as the independent regulator, will monitor the voluntary supply chain targets utilising existing tools such as their Supply Chain Action Plans.

Through the North Sea Transition Deal, the sector committed to voluntary, industry-led UK content targets for related new energy projects and decommissioning as well as for locally provided technology. The sector is considering how they will meet these targets and this month have appointed an Industry Supply Chain Champion, Sian Lloyd-Rees, to raise the profile of the UK’s energy supply chain capability. BEIS regularly engages with the Scottish Government alongside industry and regulators through the Deal Delivery Group and North Sea Transition Forum to discuss all aspects of the delivery of the Deal. The Oil and Gas Authority, as the independent regulator, will monitor the voluntary supply chain targets utilising existing tools such as their Supply Chain Action Plans.

Ministers and officials from the Department for Business, Energy and Industrial Strategy hold regular meetings with counterparts in the devolved administrations to discuss energy and decarbonisation policy, including the significant opportunities presented by the deployment of carbon capture, utilisation and storage across the UK.

Ofgem has been clear that their supplier licence reforms aim to ensure suppliers have the capacity and capability to effectively serve their customers.

The Government wants a competitive and innovative supply market, and continues to promote competition as the best driver of value and service for customers.

In a competitive market, it is normal for suppliers to exit the market from time to time. Unfortunately, some energy suppliers are facing pressures due to sudden increases in global gas prices. If a supplier fails, Ofgem will ensure customers’ are moved to a new supplier, household credit balances will be protected and gas and electricity supply will continue uninterrupted. My Rt. Hon. Friend the Secretary of State has been clear that protecting consumers shapes the Government’s entire approach on these gas price spikes.

Ofgem has reviewed their approach to supplier licensing with their resultant package of measures aimed at driving up standards across the energy retail sector by promoting more responsible risk management, improving governance, increasing accountability, and enhancing Ofgem’s market oversight. Additionally Ofgem is considering the responses to its March 2021 consultation on further measures that would require suppliers to automatically refund customers’ credit balances every year and protect any amounts they hold above a certain threshold.

The Government wants a competitive and innovative supply market, and continues to promote competition as the best driver of value and service for customers.

In a competitive market, it is normal for suppliers to exit the market from time to time. Unfortunately, some energy suppliers are facing pressures due to sudden increases in global gas prices. If a supplier fails, Ofgem will ensure customers’ are moved to a new supplier, household credit balances will be protected and gas and electricity supply will continue uninterrupted. My Rt. Hon. Friend the Secretary of State has been clear that protecting consumers shapes the Government’s entire approach on these gas price spikes.

Ofgem has reviewed their approach to supplier licensing with their resultant package of measures aimed at driving up standards across the energy retail sector by promoting more responsible risk management, improving governance, increasing accountability, and enhancing Ofgem’s market oversight. Additionally Ofgem is considering the responses to its March 2021 consultation on further measures that would require suppliers to automatically refund customers’ credit balances every year and protect any amounts they hold above a certain threshold.

The Government wants a competitive and innovative supply market, and continues to promote competition as the best driver of value and service for customers.

In a competitive market, it is normal for suppliers to exit the market from time to time. Unfortunately, some energy suppliers are facing pressures due to sudden increases in global gas prices. If a supplier fails, Ofgem will ensure customers’ are moved to a new supplier, household credit balances will be protected and gas and electricity supply will continue uninterrupted. My Rt. Hon. Friend the Secretary of State has been clear that protecting consumers shapes the Government’s entire approach on these gas price spikes.

Ofgem has reviewed their approach to supplier licensing with their resultant package of measures aimed at driving up standards across the energy retail sector by promoting more responsible risk management, improving governance, increasing accountability, and enhancing Ofgem’s market oversight. Additionally Ofgem is considering the responses to its March 2021 consultation on further measures that would require suppliers to automatically refund customers’ credit balances every year and protect any amounts they hold above a certain threshold.

The Government wants a competitive and innovative supply market, and continues to promote competition as the best driver of value and service for customers.

In a competitive market, it is normal for suppliers to exit the market from time to time. Unfortunately, some energy suppliers are facing pressures due to sudden increases in global gas prices. If a supplier fails, Ofgem will ensure customers’ are moved to a new supplier, household credit balances will be protected and gas and electricity supply will continue uninterrupted. My Rt. Hon. Friend the Secretary of State has been clear that protecting consumers shapes the Government’s entire approach on these gas price spikes.

Ofgem has reviewed their approach to supplier licensing with their resultant package of measures aimed at driving up standards across the energy retail sector by promoting more responsible risk management, improving governance, increasing accountability, and enhancing Ofgem’s market oversight. Additionally Ofgem is considering the responses to its March 2021 consultation on further measures that would require suppliers to automatically refund customers’ credit balances every year and protect any amounts they hold above a certain threshold.

The Hydrogen Strategy, published on 21st August set out that hydrogen storage, for example in salt caverns or depleted gas fields, can support the hydrogen economy in a range of ways that position it as a strategic asset as part of a fully decarbonised, net zero economy.

The Strategy made clear that there is still much work to do to understand, develop and scale up hydrogen storage infrastructure as both supply and demand grow. It committed to a review of systemic hydrogen storage requirements in the 2020s and beyond.

The Government’s review will assess the need for hydrogen storage and what form this might take. It will also consider whether funding or other incentives are needed, and whether further government regulation might be required to ensure that hydrogen storage infrastructure is available when needed.

This work, in addition to other work we are undertaking with technology developers, regulators and other industry stakeholders will help inform future Government policy on hydrogen storage. Government intends to provide an update on its review in early 2022 to facilitate further discussions with stakeholders.

Alongside its Hydrogen Strategy, the Government also published the Hydrogen Business Model consultation. The consultation includes specific questions on the treatment of small-scale storage within the Hydrogen Business Model, as well as on the potential need for a separate Government intervention to facilitate investment in future larger scale storage. Responses to these questions will also help inform our hydrogen storage review.

The Hydrogen Strategy, published on 21st August set out that hydrogen storage, for example in salt caverns or depleted gas fields, can support the hydrogen economy in a range of ways that position it as a strategic asset as part of a fully decarbonised, net zero economy.

The Strategy made clear that there is still much work to do to understand, develop and scale up hydrogen storage infrastructure as both supply and demand grow. It committed to a review of systemic hydrogen storage requirements in the 2020s and beyond.

The Government’s review will assess the need for hydrogen storage and what form this might take. It will also consider whether funding or other incentives are needed, and whether further government regulation might be required to ensure that hydrogen storage infrastructure is available when needed.

This work, in addition to other work we are undertaking with technology developers, regulators and other industry stakeholders will help inform future Government policy on hydrogen storage. Government intends to provide an update on its review in early 2022 to facilitate further discussions with stakeholders.

Alongside its Hydrogen Strategy, the Government also published the Hydrogen Business Model consultation. The consultation includes specific questions on the treatment of small-scale storage within the Hydrogen Business Model, as well as on the potential need for a separate Government intervention to facilitate investment in future larger scale storage. Responses to these questions will also help inform our hydrogen storage review.

The Hydrogen Strategy, published on 21st August set out that hydrogen storage, for example in salt caverns or depleted gas fields, can support the hydrogen economy in a range of ways that position it as a strategic asset as part of a fully decarbonised, net zero economy.

The Strategy made clear that there is still much work to do to understand, develop and scale up hydrogen storage infrastructure as both supply and demand grow. It committed to a review of systemic hydrogen storage requirements in the 2020s and beyond.

The Government’s review will assess the need for hydrogen storage and what form this might take. It will also consider whether funding or other incentives are needed, and whether further government regulation might be required to ensure that hydrogen storage infrastructure is available when needed.

This work, in addition to other work we are undertaking with technology developers, regulators and other industry stakeholders will help inform future Government policy on hydrogen storage. Government intends to provide an update on its review in early 2022 to facilitate further discussions with stakeholders.

Alongside its Hydrogen Strategy, the Government also published the Hydrogen Business Model consultation. The consultation includes specific questions on the treatment of small-scale storage within the Hydrogen Business Model, as well as on the potential need for a separate Government intervention to facilitate investment in future larger scale storage. Responses to these questions will also help inform our hydrogen storage review.

The Hydrogen Strategy, published on 21st August set out that hydrogen storage, for example in salt caverns or depleted gas fields, can support the hydrogen economy in a range of ways that position it as a strategic asset as part of a fully decarbonised, net zero economy.

The Strategy made clear that there is still much work to do to understand, develop and scale up hydrogen storage infrastructure as both supply and demand grow. It committed to a review of systemic hydrogen storage requirements in the 2020s and beyond.

The Government’s review will assess the need for hydrogen storage and what form this might take. It will also consider whether funding or other incentives are needed, and whether further government regulation might be required to ensure that hydrogen storage infrastructure is available when needed.

This work, in addition to other work we are undertaking with technology developers, regulators and other industry stakeholders will help inform future Government policy on hydrogen storage. Government intends to provide an update on its review in early 2022 to facilitate further discussions with stakeholders.

Alongside its Hydrogen Strategy, the Government also published the Hydrogen Business Model consultation. The consultation includes specific questions on the treatment of small-scale storage within the Hydrogen Business Model, as well as on the potential need for a separate Government intervention to facilitate investment in future larger scale storage. Responses to these questions will also help inform our hydrogen storage review.

The Energy White Paper sets out that natural gas has an important and on-going role to play in the future as we decarbonise our energy system. Even as work progresses with the move to a low carbon economy, energy security remains an absolute priority and Government will continue to engage with industry to ensure supply is balanced with demand.

BEIS is working with industry to explore the future role of hydrogen storage in meeting the net zero target. The UK Hydrogen Strategy provides Government’s thinking around the role of hydrogen storage, and its plans to assess whether further regulation or support mechanisms are needed.

Though it is still too early to establish the role hydrogen storage will play, and the impact the production of hydrogen and the potential need for hydrogen storage facilities might be leading to 2050, BEIS continues to work with stakeholders to determine the future of the gas system, the market and any consideration around costs in meeting the net zero target.

Last month, Government accepted the Committee on Climate Change's Carbon Budget 6 recommendation; this is a significant step in the UK's global climate leadership and CCUS and hydrogen will be critical to meeting these important commitments.

In May this year, the Department for Business, Energy and Industrial Strategy set out the details of the Carbon Capture, Usage and Storage (CCUS) Cluster Sequencing Process. Through this process, government will look to identify at least two CCUS clusters whose readiness suggests they are most naturally suited to deployment in the mid-2020s, as part of our efforts to identify and support a logical sequence of deployment for CCUS projects in the UK. Projects within the clusters will have the first opportunity to be considered to receive any necessary support under the government’s CCUS Programme including access to the £1bn CCS Infrastructure Fund, business models for Transport & Storage, power, industrial carbon capture and low carbon hydrogen. Further details on the revenue mechanisms to bring through private sector investment via these business models will be set out later this year.

We will continue to engage with each of the devolved administrations to develop our approach the delivery of CCUS across the UK. In order to facilitate this work, we continue to be open to any CCUS projects across the UK identifying themselves to us.

The UK has expertise and assets to support both electrolytic (green) and Carbon Capture Utilisation and Storage (CCUS) enabled (blue) hydrogen production. Our twin track approach will drive cost effective supply volumes in the 2020s in line with our 2030 ambition, whilst scaling up green hydrogen. This ambition will be supported by a range of measures, including a UK wide £240 million Net Zero Hydrogen Fund, and our hydrogen business model. We will be consulting shortly on these measures, alongside the publication of the Hydrogen Strategy. We are working closely with the Devolved Administrations, including the Scottish Government, to help realise the economic and decarbonisation benefits that a UK hydrogen economy will bring.

We have also supported the development and deployment of projects within Scotland’s industrial cluster that will deliver low carbon technologies and enabling infrastructure. Through the Industrial Decarbonisation Challenge, Scotland’s Net Zero Infrastructure Programme (SNZI) received £31.3m in March this year from the Industrial Strategy Challenge Fund.

The Department for Business, Energy and Industrial Strategy tests public attitudes towards nuclear energy, and a wide range of other BEIS issues, through our Public Attitude Tracker.

Questions on nuclear energy were asked in Wave 29, in March 2019.

This demonstrated that 35% of the public supported nuclear energy, 23% opposed nuclear energy and 38% neither supported nor opposed nuclear energy.

The Government remains committed to considering a framework for compensation, as well as actions to address disparities in financial and non-financial support for people infected and affected by contaminated blood across the United Kingdom.

While the Government sympathises with anyone who believes they were misled into using a disguised remuneration (DR) scheme, it is an individual’s responsibility to ensure the accuracy of their tax return and to understand the consequences of their decisions. It remains right that the Government takes action to tackle tax avoidance, which is unfair to the vast majority of taxpayers who pay the correct tax.

HM Revenue and Customs (HMRC) have been clear on their commitment to support all taxpayers who may need help to pay their Loan Charge liabilities. Where a taxpayer cannot afford to pay in full on time, HMRC will seek to agree payment by instalments with them. The payment plan agreed will be based on what the taxpayer can afford and there is no upper limit over how long HMRC can potentially spread payments.

HMRC have published settlement terms for taxpayers subject to the Loan Charge. These settlement terms are available on GOV.UK at: https://www.gov.uk/government/publications/disguised-remuneration-settlement-terms-2020/disguised-remuneration-settlement-terms-2020.

HM Revenue and Customs (HMRC) are aware of 15 contractors who have used disguised remuneration (DR) schemes while engaged either by the department or by Revenue & Customs Digital Technology Services (RCDTS). In each of the cases, the contractors were engaged via an agency or a company providing a service.

HMRC do not engage in, or enter into, disguised remuneration schemes. It is possible for a contractor providing services to HMRC to use a disguised remuneration scheme without the department’s knowledge or participation. Where HMRC become aware of a contractor who is using a disguised remuneration scheme, they take robust compliance action, including the immediate termination of the engagement. Any contractor identified in the course of HMRC’s compliance work as a scheme user would be investigated in the same way as any other contractor.

Her Majesty’s Revenue and Customs (HMRC) are assuring disguised remuneration settlement data received to date. This includes data on those taxpayers who were unable to meet the 30 September settlement deadline for reasons beyond their control who are continuing settlement discussions.

Information on settlements will be included in HMRC’s report to Parliament on the implementation of the independent Loan Charge Review, due before the end of the year.

At the time of the independent review of the Loan Charge, about 12,000 employers and individuals still had the opportunity to keep clear of the Loan Charge by concluding settlement, having provided all the relevant information to HMRC by 5 April 2019. Indications are that as at 2 October about 60 per cent of these have either settled, informed HMRC that they had instead decided to report and pay the Loan Charge, or have been taken out of scope of the Loan Charge following the Government’s changes in response to the independent review.

I have responded to Mr Stevenson’s letter and a copy has been sent by email on 9^th Nov.