Department for Business, Energy and Industrial Strategy

Decisions on the level of the price cap are for Ofgem. Ofgem’s consultation on proposed changes to the price cap closed on 17 December 2021. Ofgem intends to have a decision published by the beginning of February 2022.

The Government is in regular contact with Ofgem and industry to discuss the impact of unprecedented global gas prices and will continue to monitor the situation closely to ensure consumers are protected.

The Government has made a grant of £210 million to Rolls Royce SMR ltd to undertake phase two of the Low Cost Nuclear programme. This has been match funded by industry and investors, and will support the further development and assessment of the Rolls Royce SMR design up to 2025.

Whilst initial costing estimates have been made by Rolls Royce SMR Ltd, a key output of the programme is data that will enable more detailed whole life cost analysis, which could be used to inform any potential deployment decisions in the next parliament.

The Government has made a grant of £210 million to Rolls Royce SMR ltd to undertake phase two of the Low Cost Nuclear programme. This has been match funded by industry and investors, and will support the further development and assessment of the Rolls Royce SMR design up to 2025.

Whilst initial costing estimates have been made by Rolls Royce SMR Ltd, a key output of the programme is data that will enable more detailed whole life cost analysis, which could be used to inform any potential deployment decisions in the next parliament.

The Department, as it laid out in the recently published Energy-Related Products Policy Framework, will be looking at whether changes to minimum energy performance standards and labelling could encourage uptake of more efficient and cost-effective heating solutions, which would help protect consumers’ energy bills and reduce energy demand. This includes direct electric heaters such as panel heaters, electric radiators and electric storage heaters, which are currently expensive to run.

Maintaining a resilient and secure energy supply for the UK is a key priority for this Government. The Government continues to work with both the energy and telecommunication industries to understand the implications of the move from the public switched telephone network (PSTN) to Voice Over Internet Protocol (VoIP).

The Default Tariff Act requires Ofgem, as the gas and electricity markets regulator, to put licence conditions in place for a cap on domestic default gas and electricity tariffs. District or communal heating systems typically buy their energy through commercial contracts which are not covered by the Act.

The Default Tariff Act requires Ofgem, as the gas and electricity markets regulator, to put licence conditions in place for a cap on domestic default gas and electricity tariffs. District or communal heating systems typically buy their energy through commercial contracts which are not covered by the Act.

The Government is supporting the development of a thriving heat pump supply chain in the United Kingdom through a package of measures to create demand, supporting innovation and providing fiscal support to onshore manufacturing. Recent investment in British manufacturing of heat pumps by companies like Mitsubishi, Vaillant and Ideal Boilers demonstrates that manufacturers are responding to policy signals and the United Kingdom continues to be a great place to invest.

In order to meet Net Zero by 2050, virtually all heating will need to be decarbonised. Given the diversity of heat demand, a mix of technologies and customer options will be needed to decarbonise heat at scale.

As part of my Rt. Hon. Friend the Prime Minister’s Ten Point Plan, the Government is aiming to reach 600,000 heat pump installations per year by 2028. This ambition is in line with the minimum market capacity that the Government anticipated needing for all eventual pathways to decarbonise heating in buildings by 2050. The Government is drafting a range of policy measures to best support the market with this trajectory.

A transition to predominantly electric heating would require deployment to increase beyond 600,000 heat pumps per year by the early 2030s. In the Net Zero Strategy, the Government stated that, in this scenario, deployment would need to increase up to 1.9 million per year from 2035.

For Home Energy & Lifestyle Management Ltd appeals at the First Tier Tribunal, the Department has incurred estimated total costs of £142,300 from the Government Legal Department.

The cost of installing a domestic solar PV system varies with the type of solar panels, space for installation and roof design. In December 2021, the Department for Levelling Up Housing and Communities published indicative data on costs for fitting solar panel systems on new homes. The fixed cost to install a solar PV system of under 4kW capacity system is £1,100, with a variable cost of £600 for each kW installed[1]. Data published by the Department for Business, Energy and Industrial Strategy in May 2021 indicate the mean cost per kW for installations smaller than 4kW, whether new build or retrofit, has reduced from £2,080 in 2013/14 to £ 1,628 per kW installed in 2020/21[2].

Research by consumers’ association Which?[3] and the Energy Savings Trust estimates that the cost of a typical domestic solar installation of 3.5kW capacity and comprising 10 to 15 panels, is around £4,800 [4].

[1]https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1040631/Domestic_Part_L.pdf

[2] https://www.gov.uk/government/statistics/solar-pv-cost-data

[3] https://www.which.co.uk/reviews/solar-panels/article/solar-panels/solar-panel-costs-aDxBY2v7kr60

[4] https://energysavingtrust.org.uk/advice/solar-panels/#jumpto-17 and https://energysavingtrust.org.uk/advice/solar-panels/

The Government is supporting the deployment of heat pumps through a package of policies, which will stimulate demand and help deliver the economies of scale that will reduce costs of heat pumps. In addition, the Government has launched a £60 million Heat Pump Ready Programme, part of the £1 billion Net Zero Innovation Portfolio, which will support the development of innovative solutions across the heat pump sector. Collectively, this support will help deliver the Government’s ambition to work with industry to reduce the upfront costs of installing a heat pump by 25-50% by 2025.

Based on the best available evidence, the Government estimates the current total cost of installing an air source heat pump to replace a gas boiler in an average three-bedroom semi-detached house to be around £10,500. However, as the market develops, heat pump installation costs are expected to fall. In the Heat and Buildings Strategy, the Government set an ambition to reduce the upfront costs of installing a heat pump by 25-50% by 2025.

The Government is committed to helping low income and vulnerable households to sufficiently heat their homes, recognising the impact cold homes can have on people’s health.

Energy efficiency is the best long-term solution to tackling fuel poverty. The Government is driving energy efficiency improvements through a number of schemes, including the Energy Company Obligation and the Home Upgrade Grant. Since the Energy Company Obligation Scheme began in 2013, Warwickshire has received 21,746 energy efficiency measures (Headline Energy Efficiency Statistics, Table 3.4).[1]

Additional support is available to eligible households through the Warm Home Discount, the Cold Weather Payment and the Winter Fuel Payment. The Household Support Fund is also providing £421 million to help vulnerable people in England with the cost of food, utilities and wider essentials this winter.

[1] https://www.gov.uk/government/statistics/household-energy-efficiency-statistics-headline-release-december-2021

Ministers and officials regularly met energy companies during the first and second covid-19 lockdowns to discuss a range of issues relating to the energy retail market. The Government’s Voluntary Agreement with energy suppliers prioritises customers at risk and supports those impacted by covid-19. Based on circumstances, this could include reassessing, reducing or pausing debt repayments for households in financial distress and support for prepayment meter customers to stay on supply. The Agreement was introduced in March 2020 and is still in place today.

The Government aims to support a high-skilled, high productivity, high wage economy that delivers on our ambition to make the UK the best place in the world to work and grow a business.

There are high paying jobs across all sectors and regions of the UK economy, including 600,000 high wage manufacturing jobs. Whilst businesses ultimately drive job growth, it is for the Government to create the right environment for job creation, and since 2010 there are an additional 3.6 million more people in work with the majority in high-skilled occupations.

The Government remains committed to the target of UK economy-wide R&D investment reaching 2.4% of GDP by 2027. This investment will continue to support a high innovation economy and deliver high wage jobs over the long term.

Yes, my Rt. Hon. Friend the Secretary of State has met with Devolved Administrations, including the Welsh Government at a ministerial level to discuss rising energy prices. Engagement at an official level is ongoing.

The Heat and Buildings Strategy set out the range of policies that will combine to support the development of the heat pump market towards 600,000 per year by 2028.

This package includes: the Future Homes Standard, which will ensure that new homes are built zero carbon-ready without the need for costly retrofitting; targeted funding support, through the £450 million Boiler Upgrade Scheme, the Home Upgrade Grant and Social Housing Decarbonisation Fund; and proposals currently out to consultation for a new market-based incentive, to be introduced from 2024, and to phase out new fossil fuel heating systems in off-gas grid buildings, starting with larger non-domestic buildings from 2024 and smaller buildings and homes from 2026.

There will be several routes to compliance with the 2021 uplift, and it is therefore not possible to produce a robust estimate of the number of annual heat pump installations that will result. Modelling from the Department for Levelling Up, Housing and Communities produced as part of their impact assessment in the case of domestic properties specifically, estimates that around 10% of new homes built in 2022 could include an air source heat pump.

Details of Government contracts above £10,000 are published on Contracts Finder: https://www.contractsfinder.service.gov.uk/Search.

Details of ministerial meetings are published quarterly and can be found on GOV.UK.

We recognise the effect rising energy prices are having on businesses of all sizes and we are regularly engaging with them to discuss impacts and mitigations.

Since 2013, we have provided more than £2 billion in relief to help energy intensive industries with the costs of electricity, with over £600 million for steel. In addition, we have various funds in place to support businesses with high energy use to cut their bills, including the £315 million Industrial Energy Transformation Fund.

Line managers and individuals have joint responsibility for ensuring that staff work their agreed hours and take breaks in accordance with the Working Time Regulations 1998, and to manage any issues if they arise. This applies to both where the employee is attending the workplace and where they are working from home.

Prior to placing a product on the market, manufacturers must demonstrate conformity with the implementing measures as set out in the product specific regulations. This includes a declaration of conformity and technical documentation, and can include relevant standards used to demonstrate compliance. This technical documentation must be kept by the manufacturer for a period of 10 years after production and made available to the market surveillance authority, who can conduct independent testing after the product has launched on the market.

Prior to placing a product on the market, manufacturers must demonstrate conformity with the implementing measures as set out in the product specific regulations. This includes a declaration of conformity and technical documentation, and can include relevant standards used to demonstrate compliance. This technical documentation must be kept by the manufacturer for a period of 10 years after production and made available to the market surveillance authority, who can conduct independent testing after the product has launched on the market.

Retail prices of petroleum products such as petrol and diesel are primarily driven by the underlying price in the global market of crude oil (priced in US$) and exchange rates. Recognising that fuel is a major cost for households and businesses, the Government has kept fuel duty frozen for 12 successive years.

Fuel poverty is a devolved matter. The Department only has responsibility for England. Therefore, no estimate has been made by the Department on the impact of proposed changes to National Insurance on levels of fuel poverty in Newport West constituency, Wales.

The Government is monitoring the significant increases in wholesale energy prices closely, and meeting regularly with Ofgem, suppliers and consumer groups to understand the future impact on consumers as well as to discuss potential mitigations.

Last summer, the Government consulted on extending the Energy Company Obligation Scheme from 2022-26 and expanding it to £1billion per year. The Government keeps all costs on bills under review and will issue a response to the consultation in due course.

The Energy Company Obligation Scheme has been in place since January 2013 and has delivered around 3.3 million improvements in 2.3 million homes up to the end of October 2021.

To date, the Energy Company Obligation Scheme has delivered £6.6 billion in Lifetime Bill Savings up to the end of October 2021 and an estimated lifetime energy saving of 211,300 Gigawatt Hours.

Since the Energy Company Obligation Scheme began in 2013, the average energy efficiency rating in England has increased from 59, to 66 in 2020. During that same period, 2012-2019, the number of fuel poor households in England fell from 4.4million to 3.2million.

In September 2019, the Department appointed Kantar to undertake a scheme evaluation, reporting in late 2022. The initial findings of the evaluation show that overall, more than half of households surveyed (57%) said they had benefitted a fair amount or a great deal from having the energy saving measures installed. Benefits cited by participants included savings on energy bills, a more comfortable temperature in the home and reduced worry about heating their home.

It is disappointing that in streamlining its office presence in South Wales Admiral has announced it will begin a phased exit of its Newport City Centre offices in 2022. However, it is positive that the leader of Newport City Council has committed to working closely with Admiral and its landlord to ensure the building’s future use is fully explored and secured.

The UK Government is playing its part in supporting Newport’s post-pandemic economy and is investing over £2m through the Community Renewal Fund to level up the city. This includes a project to develop entrepreneurs in the Pillgwenlly area of Newport. Developing entrepreneurs and start-up businesses will be key to the future of Newport’s economy and its newly developed workspaces.

The Government is monitoring the significant increases in wholesale energy prices closely, and meeting regularly with Ofgem, suppliers and consumer groups to understand the future impact on consumers as well as to discuss potential mitigations.

Where a document (whether filed electronically or on paper) appears to be “properly delivered”, the registrar is obliged to register it. A document is properly delivered when it contains the information required by law; is completed in the proper form; has the correct fee attached (where appropriate) and is authenticated.

The Registrar of Companies does not have the legal power to verify or validate information filed with her. If a complaint is received as to the content of the filing, Companies House may contact the entity to make enquiries. No complaint has been received in this case.

Where a document (whether filed electronically or on paper) appears to be “properly delivered”, the registrar is obliged to register it. A document is properly delivered when it contains the information required by law; is completed in the proper form; has the correct fee attached (where appropriate) and is authenticated.

The Registrar of Companies does not have the legal power to verify or validate information filed with her. If a complaint is received as to the content of the filing, Companies House may contact the entity to make enquiries. No complaint has been received in this case.

Where a document (whether filed electronically or on paper) appears to be “properly delivered”, the registrar is obliged to register it. A document is properly delivered when it contains the information required by law; is completed in the proper form; has the correct fee attached (where appropriate) and is authenticated.

The Registrar of Companies does not have the legal power to verify or validate information filed with her. If a complaint is received as to the content of the filing, Companies House may contact the entity to make enquiries. No complaint has been received in this case.

Officials are in regular contact with the fuel supply industry including those within retail operations, to discuss a range of issues, including the Government’s draft Downstream Oil Resilience Bill. The Department also monitors changes in fuel prices and has therefore decided to freeze fuel duty for the twelfth consecutive year.

Upskilling and growth of the supply chain is essential to deliver against Net Zero targets for the decarbonisation of buildings. In September 2020, the Government launched a £6.9m Skills Training Competition to provide 8,000 training opportunities for the energy efficiency and low carbon heating supply chains. Training delivery for this scheme finished at the end of October 2021.

The Government is also supporting growth of the supply chain by investing £2.5 billion in a National Skills Fund and continues to work closely with the market to support training in key skills shortage areas as well as opportunities for increasing capacity.

The Government has committed to spend £6.6 billion in this Parliament on improving the energy efficiency of buildings. The Government has already allocated more than £900m to improving the energy efficiency of privately owned homes through the Local Authority Delivery scheme and the Home Upgrade Grant. In Spring 2022, the Government will launch the new Boiler Upgrade Scheme, worth £450 million, to support householders with the cost of installing of a heat pump. Moreover, the Government has already installed 3.3 million energy-efficiency measures in 2.3 million homes via the Energy Company Obligation scheme. Once this scheme ends in March 2022, a successor scheme, with a value of £1billion, is planned to provide support until 2026.

The Net Zero Strategy sets out the Government’s commitments to enable local areas to deliver net zero. This includes establishing a Local Net Zero Forum to bring together national and local government senior officials to discuss policy and delivery options on net zero, and continuing the Local Net Zero Programme to support all local areas with their capability and capacity to meet net zero.

The Local Authority Delivery Scheme (LAD), which supports projects to install energy efficiency measures such as various types of insulation and low-carbon heating systems for low-income households, has already provided £500million to Local Authorities for upgrades to low-income households across England, and is being delivered up to June 2022 through a managed closure.

As of 1 January 2022, new Ecodesign regulations require that when a solid fuel local space heater (wood burning stove) is placed on the UK market, the product’s efficiency and its emissions of particulate matter, organic gaseous compounds, carbon monoxide and nitrogen oxides under standardised test conditions must be provided in the instruction manual for installers and end-users as well as on a free-access website.

The Heat and Building Strategy sets out how Government is taking a ‘fabric first’ approach to improving the energy efficiency of buildings; this ensures transition to low-carbon heating is cost effective.

The Strategy sets out measures including:

• Upgrading fuel-poor homes to Energy Performance Certificate (EPC) Band C by 2030 where reasonably practicable to do so.
• Additional funding to the Home Upgrade Grant and the Social Housing Decarbonisation Fund – investing a further £950m and £800m respectively over 2022/23 to 2024/25. Both schemes use Trustmark standards to ensure quality installations and both use an improvement in EPC to measure increased energy efficiency.
• Consulting on phasing in higher minimum performance standards to ensure all homes meet EPC Band C by 2035, where cost-effective, practical and affordable.
• Setting long-term regulatory standards to upgrade private-rented homes to EPC C by 2028.
• Requiring mortgage lenders to disclose energy efficiency standards of their portfolios in order to incentivise them to provide attractive finance offers so their customers can retrofit their homes.
• Considering setting a long-term regulatory standard for all homes, subject to consultation.

The Energy Future System Operation consultation closed on the 28th of September 2021 and received a high volume of responses. The Department and Ofgem are considering these responses and will publish a response in due course.

Great Britain has one of the most reliable energy systems in the world and maintaining a secure electricity supply is a key priority for Government.

Government regularly liaises with industry through the Energy Emergencies Executive Committee to continually improve and maintain the resilience of energy infrastructure, networks and assets, to reduce vulnerabilities, and to ensure an effective response to actual or potentially disruptive incidents.

Electricity network operators are private companies which build, own, and operate electricity network infrastructure. As regional monopolies, they are regulated by the independent energy regulator, Ofgem. The total value of the electricity transmission price control between 2013 and 2021 was over £15bn, while the forecast total value of the electricity distribution price control between 2015 and 2023 is over £29bn.

Electricity network operators are private companies which build, own, and operate electricity network infrastructure. As regional monopolies, they are regulated by the independent energy regulator, Ofgem. The total value of the electricity transmission price control between 2013 and 2021 was over £15bn, while the forecast total value of the electricity distribution price control between 2015 and 2023 is over £29bn.