Asked by: Tracy Gilbert (Labour - Edinburgh North and Leith)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 5 September 2024 to Question 2198 on District Heating, when his Department plans to bring forward regulations to implement the Heat Network Market Framework.
Answered by Miatta Fahnbulleh - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The first part of the Heat Networks (Market Framework) (Great Britain) Regulations 2025 was signed into law on the 2nd of March 2025. The remaining parts of this regulatory framework will be laid in Parliament later this year, and Ofgem will assume its role as heat network market regulator on the 27th of January 2026.
On the 1st of April, the redress, advice and advocacy functions of the Heat Networks Market Framework came into force. Under these schemes, the Energy Ombudsman, Citizens Advice, and Consumer Scotland will monitor the market and have powers to take enforcement action against operators that break the rules on metering and billing.
Asked by: Tracy Gilbert (Labour - Edinburgh North and Leith)
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 merits of introducing zonal pricing on private investment.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government is considering reforms to the electricity market through our Review of Electricity Market Arrangements (REMA). This includes consideration of whether to move to a zonal electricity market, where prices vary depending on local conditions, or to continue with a reformed version of our national pricing arrangements.
Zonal pricing could have significant benefits, including through reducing the cost of energy to businesses. However, it also creates potential new risks to generators that need to be carefully considered.
Any decisions on market reform will be based on a robust analysis of the costs and benefits.
The Government plans to conclude the policy development phase of the REMA programme by mid-2025.
Asked by: Tracy Gilbert (Labour - Edinburgh North and Leith)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, how many organisations he has had discussions with on zonal pricing are (a) in favour of and (b) against introducing zonal pricing.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The second REMA consultation sought views on a range of market reforms under consideration by Government, including zonal pricing. The outcomes of the consultation are available at https://www.gov.uk/government/consultations/review-of-electricity-market-arrangements-rema-second-consultation
Since coming into office I have also met with stakeholders representing a wide spectrum of views on zonal pricing, with the purpose of considering all positions as we work towards making a decision on market reform.
Asked by: Tracy Gilbert (Labour - Edinburgh North and Leith)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what his planned timetable is for the end of the policy development phase of the review of electricity market arrangements.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
As set out in the Review of Electricity Market Arrangements Autumn Update, the Government plans to conclude the policy development phase of the REMA programme by mid-2025 and announce final decisions before the CfD Allocation Round 7 auctions open.
Asked by: Tracy Gilbert (Labour - Edinburgh North and Leith)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what estimate his Department has made of when the satellite sites for Great British Energy in Edinburgh will (a) be announced and (b) open.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This Government is focused on establishing Great British Energy at its Headquarters in Aberdeen. Additional sites in Glasgow and Edinburgh will follow in the longer term to ensure the company can tap into expertise across Scotland. Estimates for these additional sites will depend upon the detailed workforce plans for the new company, which are being developed.
Asked by: Tracy Gilbert (Labour - Edinburgh North and Leith)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what remit the Great British Energy satellite sites in (a) Edinburgh and (b) Glasgow will have.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This Government has been clear that Great British Energy (GBE) will be operationally independent, and decisions such as these will ultimately sit with the company itself. These additional sites in Glasgow and Edinburgh will allow GBE to tap into other expertise across Scotland, and workforce planning is ongoing to ensure the company secures the right skills in the right locations. The work GBE delivers across all of its locations will be in accordance with the strategic priorities, which will be set by the Secretary of State.
Asked by: Tracy Gilbert (Labour - Edinburgh North and Leith)
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 Transmission Network Use of System charges on the viability of potential renewable energy projects in Scotland.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Ofgem is legally responsible for network charging arrangements. Government and Ofgem recognise the importance of transmission charges to the development of renewable generation in Scotland. This is why Ofgem established an industry Taskforce to consider near-term improvements to transmission charges and has proposed a temporary cap and floor to alleviate the projected rise, and increasing volatility, in Transmission Network Use of System charges. This is expected to provide generators with greater certainty in time for future Contracts for Difference allocation rounds, including the next - Allocation Round 7.
Asked by: Tracy Gilbert (Labour - Edinburgh North and Leith)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if he will make an assessment of the potential merits of reforming the Transmission Network Use of System charges.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Ofgem is legally responsible for network charging arrangements and both Government and Ofgem recognise the importance of transmission network charges in considering wider electricity system reform. There are both near- and long-term proposals being considered for reform of Transmission Network Use of System charges and Government officials will continue to work closely with Ofgem as these proposals develop.
Asked by: Tracy Gilbert (Labour - Edinburgh North and Leith)
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 consult with stakeholders ahead of the Contract for Difference Allocation Round 7.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
We are currently working with industry to accelerate ways to build upon the successful outcome of the last Contracts for Difference auction, so that we can deliver our goal of clean power by 2030. We will also consult formally with stakeholders on any changes to the scheme ahead of Allocation Round 7.
Asked by: Tracy Gilbert (Labour - Edinburgh North and Leith)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his Department plans to extend Contract for Difference terms in future allocation rounds.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government reviews the Contracts for Difference scheme before every round to ensure it continues to deliver our objectives. We are currently working with industry to accelerate ways to build upon the successful outcome of the last auction so that we can deliver our goal of clean power by 2030.