Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government, further to the Impact Assessment on the Hydrogen Heating Village Grid Conversion Trial which stated that “the trial will largely be funded by Ofgem and BEIS, with some private sector investment", how much of the cost will be paid (1) from public funds, and (2) by billpayers.

The Government is committed to ensuring that the rights of consumers are protected before, during and after the hydrogen heating trials. Nobody in the trial areas will pay more for their heating than they would if they were still connected to natural gas, including those that choose an electric alternative. They will also not be expected to pay for the installation or maintenance of hydrogen-capable appliances, or an alternative heating solution.  The Government is working with the regulator Ofgem and the gas networks to deliver these consumer protections through consumer contracts and funding agreements. Consumers will be able to opt-out of the neighbourhood trial at any point and switch back to using natural gas free of charge. Consumer protection for the village trial will be further enhanced through legislation, including measures in the Energy Bill, and subsequent regulations.

The neighbourhood trial is funded by SGN, with contributions from other gas networks, Ofgem and the Scottish Government.  The village trial will be funded by the Department for Energy Security and Net Zero, Ofgem and the gas networks. The village trial location and level of public funding will be decided later this year, following the submission of funding applications in March.