Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
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 whether curtailment payments create incentives to locate generation in areas with insufficient grid capacity.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The revenue that generators can make from curtailment payments is regulated by Ofgem through the Transmission Constraint Licence Condition. This regulation limits the revenue generators can make from being curtailed to the value of the revenue lost through not being able to generate plus reasonable costs. Ofgem can and does take enforcement action against generators that it believes are not complying with this regulation.
The Strategic Spatial Energy Plan (SSEP) will optimise the siting of new sources of electricity generation across Great Britain. The Government’s Reformed National Pricing programme will have the SSEP at its heart, and reforms will be designed to ensure incentives for generation projects encourage siting and investment in areas that align with the SSEP.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what the expected completion dates are for major new transmission projects intended to reduce renewable curtailment.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Clean Power Advice to Government, published by the National Energy System Operator in 2024 set out the list of over 80 transmission projects needed to meet Clean Power 2030, and their required delivery dates. These projects will alleviate curtailment and allow more renewable power to serve homes and businesses across the country. Updates on the expected completion dates of these projects is a matter for the Transmission Owners which design, run and build the high voltage network.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what measures are in place to limit curtailment costs during the period before new grid infrastructure becomes operational.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government, the National Energy System Operator (NESO) and the Office of Gas and Electricity Markets (Ofgem) are pursuing measures which will reduce constraint costs in the short term. These include making best use of the existing network, deploying smart grid technologies and taking measures to reduce the amount of time networks need to be out of service for essential new build and maintenance. NESO is also progressing other technical measures at pace via the Constraints Collaboration Project. We intend to announce further measures in the Reformed National Pricing (RNP) Deliver Plan which will be published shortly.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
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 curtailment costs to electricity billpayers in 2026.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Data on the aggregate impact of curtailment payments to electricity billpayers is calculated by the National Energy System Operator (NESO) and can be found in NESO Annual Balancing Report, the next of which will be published later this year. The most recent NESO Annual Balancing Report was published in June 2025, covering the 2024/25 financial year, and can be found via this link: neso.energy/document/362561/download
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent assessment he has made of the impact of curtailment payments on average household energy bills in 2025.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
This information can be found in the NESO Annual Balancing Report, the next of which will be published later this year. The most recent NESO Annual Balancing Report was published in June 2025, covering the 2024/25 financial year, and can be found via this link: neso.energy/document/362561/download
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to ensure that the expansion of renewable generation does not lead to higher electricity bills for consumers.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
At a systems level, the prize of a renewables-based system, supported by nuclear and other technologies, is clear: it gets us off the fossil fuel rollercoaster, reducing our exposure as a country. The role of gas generation is already changing in GB’s electricity system and, as renewable deployment continues, its impact on the electricity price will reduce. Clean power 2030 will mean volatile gas sets the wholesale electricity price much less often than today.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what lessons his Department has learnt from other countries that have reduced curtailment while expanding renewables.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
We use evidence from comparable countries to support our decision making and policy thinking on curtailment. Constraint payments are a natural part of operating an electricity system and are used in many countries such as Italy, Spain, Germany and Denmark. However, the current extent of grid constraints reflects years of underinvestment, with new network infrastructure development having lagged the expansion of new generation. We’re finally changing that, with the biggest upgrade to Great Britain’s electricity network in decades, which will minimise both curtailment and constraint costs, and help deliver clean power by 2030.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent assessment he has made of the role of battery storage in reducing renewable curtailment.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Electricity storage has an important role to play in decarbonising the power sector by helping to balance the electricity system at lower cost. Electricity storage achieves this by charging when electricity is abundant and discharging when it is scarcer, thereby mitigating the need for grid reinforcement and reducing the curtailment of renewable generation. Efficient use of storage therefore offers opportunities for reducing constraint costs. The Government, the National Energy System Operator (NESO) and the Office of Gas and Electricity Markets (Ofgem) are currently investigating options aimed at maximising the benefits of storage technologies in reducing system costs.
Asked by: Dave Doogan (Scottish National Party - Angus and Perthshire Glens)
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 the cost of constraint payments and balancing actions in each year since 2020; and what assessment his Department has made of the potential impact of this on domestic energy bills.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The breakdown of curtailment and balancing action costs borne by domestic consumers and other data relating to constraints is provided in the National Energy System Operator (NESO) Annual Balancing Report. The most recent of these reports was published in June 2025 which can be found via this link: neso.energy/document/362561/download. We recognise that actions are needed to reduce system constraints. The current extent of grid constraints reflects years of underinvestment, with new network infrastructure development having lagged the expansion of new generation. We are already taking action to reduce constraints with the biggest upgrade to Great Britain’s electricity network in decades.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to ensure a just transition and economic fairness for communities when reducing air pollution from the energy sector.
Answered by Katie White - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The government’s approach to the transition is built on the principle of fairness – for households by ensuring energy security and protecting billpayers, and for workers by ensuring decarbonisation is a route to reindustrialisation.
The transition will unlock a range of social and health benefits from lower energy bills and cleaner air for people across the country, including those in vulnerable circumstances.
Working towards net zero and adapting to climate change is essential to prevent widening inequalities, because we know that if we do not act, the impacts of climate change will more severely impact vulnerable groups.