Asked by: Wera Hobhouse (Liberal Democrat - Bath)
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 impact of taking steps to help tackle hidden commission fees charged by energy brokers on costs for businesses; and whether he has considered introducing a regulatory framework to help tackle those fees.
Answered by Miatta Fahnbulleh - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government has consulted on introducing a regulatory regime for the TPI market. This would raise standards, protect businesses from harmful practices, and improve consumer confidence in responsible TPIs. Earlier this month, the Government published a summary of the responses to the consultation, which set out that most respondents supported introducing regulation for TPIs. We will publish a Government response to the consultation, setting out future plans on TPI regulation, in due course.
Current regulatory oversight of TPIs within the energy market primarily consists of voluntary codes of practice, Ofgem licence conditions on energy suppliers, and consumer protection regulations. These codes of practice outline best practices and standards for TPI conduct in areas such as transparency, customer engagement, and ethical behaviour.
Ofgem imposes licence conditions on energy suppliers that indirectly affect the activities of TPIs. These include requirements related to transparent pricing for non-domestic customers using TPIs and access to redress for microbusiness consumers, and, since December, to small businesses.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps (a) his Department and (b) Ofgem are able to take to help tackle misconduct by Third-Party Intermediaries in the energy market.
Answered by Miatta Fahnbulleh - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government has consulted on introducing a regulatory regime for the TPI market. This would raise standards, protect businesses from harmful practices, and improve consumer confidence in responsible TPIs. Earlier this month, the Government published a summary of the responses to the consultation, which set out that most respondents supported introducing regulation for TPIs. We will publish a Government response to the consultation, setting out future plans on TPI regulation, in due course.
Current regulatory oversight of TPIs within the energy market primarily consists of voluntary codes of practice, Ofgem licence conditions on energy suppliers, and consumer protection regulations. These codes of practice outline best practices and standards for TPI conduct in areas such as transparency, customer engagement, and ethical behaviour.
Ofgem imposes licence conditions on energy suppliers that indirectly affect the activities of TPIs. These include requirements related to transparent pricing for non-domestic customers using TPIs and access to redress for microbusiness consumers, and, since December, to small businesses.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
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 work his Department has commissioned on removing barriers to local supply faced by community energy schemes.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government recognises that local energy will play an important role in achieving the mission to make Britain a clean energy superpower by 2030, and some electricity suppliers are already working with community energy groups to support local supply. We published the summary of responses to the previous Call for Evidence on Barriers to Community Energy in March 2025 and officials in my department are currently undertaking research and engagement, including in the form of workshops with key stakeholders, to work through this complex issue and understand any unintended consequences to the wider system and bill payers from unlocking local supply. Further updates and outcomes from this work will be provided in due course.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
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 maintain (a) optionality and (b) competition in the Clean Power Plan.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Table 1 of the Clean Power Action Plan sets out a range of potential installed capacity levels for different technologies in 2030. This reflects the Government’s commitment to maintaining optionality by supporting a diverse mix of technologies capable of delivering a clean power system.
The Contracts for Difference (CfD) scheme is the government’s main mechanism for supporting new low-carbon electricity generation projects in Great Britain. CfDs are awarded through regular, competitive auctions, with the lowest-priced bids successful.
We have recently consulted on reforms to increase competition in the CfD scheme. We will publish a full government response to this consultation before Allocation Round 7 opens in the Summer.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
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 adequacy of capacity allocation in the Clean Power Plan for Scottish onshore wind between 2031 and 2035.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The 2035 capacity number for Scotland is based on National Energy System Operator's Future Energy Scenarios, which present credible pathways to decarbonise our energy system as we strive towards the 2050 target. We therefore consider the capacity allocation planned for Scotland between 2030 and 2035 to be adequate and will continue to keep this under review, including considering updates to align with the Strategic Spatial Energy Plan, to be published in 2026.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
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 impact of removing the social housing obligation from future iterations of the Energy Company Obligation scheme on the retrofit measures provided to fuel poor households.
Answered by Miatta Fahnbulleh - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
We are committed to meeting fuel poverty and Net Zero targets, and we are currently considering what policy mix will best achieve that, including what role energy company obligations should play post-2026.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
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 support interconnector infrastructure.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Interconnector development is a developer-led process in GB. Projects are given regulatory approval through Ofgem, a process with no formal role for Government. We welcome Ofgem’s decision to approve five new interconnector projects, including two Offshore Hybrid Assets, in November 2024.
The Department is in regular communication with interconnector projects at all stages of development and we of course look to support their development where appropriate.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he is taking steps to develop a strategic framework to enable the integration of hydrogen into future net zero energy systems.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
Hydrogen will be key in reaching net zero, helping decarbonise industrial processes and heavy transport where it’s harder or more expensive to electrify, complementing wider electrification efforts. Hydrogen to power was identified in our December Clean Power Action plan as a key technology providing low carbon dispatchable generation at a range of scales, benefiting from the UK’s abundance of offshore wind and supporting a decarbonised power system.
We have a comprehensive framework of investible business models to support infrastructure deployment, supporting projects that create real jobs and growth. An update on our hydrogen strategy will be provided later this year.
Hydrogen will be key in reaching net zero, helping decarbonise industrial processes and heavy transport where it’s harder or more expensive to electrify, complementing wider electrification efforts. Hydrogen to power was identified in our December Clean Power Action plan as a key technology providing low carbon dispatchable generation at a range of scales, benefiting from the UK’s abundance of offshore wind and supporting a decarbonised power system.
We have a comprehensive framework of investible business models to support infrastructure deployment, supporting projects that create real jobs and growth. An update on our hydrogen strategy will be provided later this year.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, for what reason The Contracts for Difference (Miscellaneous Amendments) (No. 2) Regulations 2025 do not include time limits on extended subsidies to Drax.
Answered by Michael Shanks - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government agreed Heads of Terms with Drax for short-term support from 2027-2031 to ensure UK security of security, as outlined in the ministerial statement in February. This represents a step-change in arrangements and Drax will provide power only when the system, and consumers really need it. This halves the level of consumer subsidies compared to existing arrangements, saving nearly £6 per household in annual bills.
The referenced statutory instrument makes amendments to the definition of an eligible generator to facilitate support for large scale biomass generators. It does not specify the terms of contracts for difference for individual companies, including time limits.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what estimate he has made of the reduction of the funding for home energy upgrades in the Warm Homes Local Grant compared to the Home Upgrade Grant 2 for Bristol City Council; and whether this represents a reallocation of resources in the Warm Homes Plan.
Answered by Miatta Fahnbulleh - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Bristol City Council’s consortium was awarded £13,458,463 under Warm Homes: Local Grant (WH:LG), which is ~£2m more than the £11,393,650 awarded under Home Upgrade Grant 2 (HUG2).
Whilst HUG2 was allocated £700m in 2021 by the previous government compared to WH:LG’s £500m in autumn 2024, this does not represent a resource reallocation under the Warm Homes Plan as these schemes are not comparable.