Department for Energy Security & Net Zero

The government recognises that high electricity prices are a significant pressure on industry and a barrier to investment and growth. We are continuing to develop further policies to bring down electricity costs relative to gas, and intend to consult on options to reduce costs and make electrification an economically rational choice for a wider range of businesses and organisations.

Heat Network zoning equips communities and local government with the tools to accelerate the development of low carbon heat networks and ensure that more homes and businesses can have access to greener, cheaper heat.

Through heat network zoning, certain types of buildings and heat sources can be required to connect to a network within a prescribed timeframe. This will allow for large-scale strategic heat networks to be built in towns and cities across the country.

We are confident in the UK’s security of fuel supply, and there are currently no indications of disruption. The Department is working closely with fuel suppliers, distributors, and trade bodies to monitor heating oil supply, demand, and market conditions, and to ensure sufficient supplies are available across the UK. The UK benefits from a diverse and resilient supply chain.

The Data Communications Company (DCC) is the organisation responsible for the smart metering network in Great Britain, and is obligated to provide smart meter network connectivity to at least 99.25% of premises across GB. The Government is working closely with the DCC to ensure that smart meter connectivity can be extended to the small minority of unserved properties in all regions, including rural areas, as soon as reasonably possible.

One such solution, currently being rolled out, is Virtual WAN (VWAN) which involves using customers’ broadband connection, (with consent), to carry smart metering communications.

HM Treasury’s Green Book sets out the framework for assessing value for money for taxpayers across different policy proposals. It is applied consistently across all regions. However, it also uses place-based analysis to account for differences between towns, regions and countries, including areas such as the North East.

When assessing infrastructure proposals, officials consider the full range of societal costs and benefits, including upfront and operating costs, changes in energy use, and impacts on greenhouse gas emissions. These are quantified and monetised using the best available evidence and standardised assumptions, ensuring consistent and robust assessments for ministers.

As set out in the Warm Homes Plan, our assessment is that the current consumer protection system is too fragmented and lacks sufficient oversight of the various actors involved in the delivery of government‑supported domestic retrofit schemes.

The Department is reforming the consumer protection system to simplify delivery and bring oversight under closer government control, and will consult on options for reform this year. This includes clearer accountability across supply chains, strengthened assurance arrangements, and improved monitoring and escalation processes.

We are working across Government, including MHCLG, and consumer experts from industry to develop and stress test plans.

By law, transmission charging arrangements are a matter for Ofgem as the independent regulator. Ofgem are currently reviewing the arrangements and are holding a call for input. Government is supporting Ofgem closely on the review, as part of our wider Reformed National Pricing programme and our delivery of the Strategic Spatial Energy Plan. We will ensure that transmission charging is reformed as soon as possible.

Ofgem administers the Feed-in Tariff (FIT) scheme and maintains the Central FIT Register (CFR), which records accredited installations and their recipient, supporting correct assignment of payments. Suppliers must maintain accurate records on the CFR, which is subject to regular audit activity.

In some cases, payments may be assigned to a third party under separate contractual agreements. Such arrangements are commercial in nature and fall outside the FIT framework.

To confirm the recipient, homeowners may request information from Ofgem via an Ownership Register Query. Where appropriate, they may raise the matter with the relevant supplier, with unresolved complaints escalated to the Energy Ombudsman.

The Department does not have an estimate for the scale of the issue as we do not hold details of all Green Deal loans issued. Lack of an MCS certificate has appeared as an element in some Green Deal complaints the Department has reviewed, though this has been uncommon. Officials are investigating complaints referred to the Secretary of State in accordance with the Green Deal Framework Regulations, and may issue decisions cancelling or reducing a Green Deal loan where they find breaches of said regulations or the Green Deal Code of Practice. This may include issues related to MCS certificates.

The Department does not hold this data. Half-hourly demand figures and estimated wind and solar generation for Great Britain, are published by NESO. Weather data is available from the Met Office.

The Government recognises the importance of oil and gas for a wide range of industrial and manufacturing purposes, including in the production of agricultural inputs such as fertilisers.

Oil and gas will continue to play an important role in the UK’s energy mix for decades to come. The Government’s North Sea Future Plan sets out our approach to managing existing oil and gas fields for their full lifespan, while not issuing new licences to explore new fields, supporting a fair, orderly and prosperous transition.

There isn’t a single standalone assessment specific to any individual manufacturing sectors.

The Government recognises the importance of oil and gas for a wide range of industrial and manufacturing purposes, including in the production of agricultural inputs such as fertilisers.

Oil and gas will continue to play an important role in the UK’s energy mix for decades to come. The Government’s North Sea Future Plan sets out our approach to managing existing oil and gas fields for their full lifespan, while not issuing new licences to explore new fields, supporting a fair, orderly and prosperous transition.

There isn’t a single standalone assessment specific to any individual manufacturing sectors.

Details of Ministers' and Permanent Secretaries' meetings with external individuals and organisations are published quarterly in arrears on GOV.UK.

Oil and gas will continue to play an important role in the UK’s energy mix for decades to come. The Government’s North Sea Future Plan sets out our approach to managing existing oil and gas fields for their full lifespan, while not issuing new licences to explore new fields, supporting a fair, orderly and prosperous transition.

The capacity or load factors of wind and solar electricity generation in the UK depend on several factors, including site location and technology choices. The department publishes estimates of capacity factors for generic installations of solar PV, onshore wind, and offshore wind electricity generation in the UK as part of its Generation Costs publications.

The relevant publications can be found here:

• Annex A (Generation Costs Report): annex-a-additional-estimates-and-key-assumptions-2025.xlsx (view the ‘Technical and Cost Assumptions’ section for load factors).
• Generation Costs Report: Electricity Generation Costs 2025

The Capacity Market is government’s main tool for ensuring continued security of electricity supply in Great Britain. It is technology neutral and provides incentives for all forms of capacity, including generation, storage, consumer-led flexibility and interconnection to be on the system to deliver when needed.

The volume of capacity procured through the Capacity Market is set based on advice from National Energy System Operator (NESO) in their annual Electricity Capacity Report. Through the Capacity Market we have secured a total of 57.4 GW for the coming winter, meaning we can have confidence that we will have sufficient capacity available to deliver electricity when needed.

The Government supports UK solar research and development companies in various ways.

There is funding available for innovation companies looking to grow, including through UK Research and Innovation.

Moreover, the Solar Roadmap included several actions to support R&D companies in the UK, including working with the National Physical Laboratory to explore the establishment of a PV innovation and infrastructure platform. We recently worked with Solar Energy UK to produce a practical guide for companies in the solar supply chain, including R&D firms. It is available here: https://solarenergyuk.org/wp-content/uploads/2026/04/Growing-the-UK-Solar-Supply-Chain-A-practical-guide-for-businesses.pdf.

This information is not held centrally.

Fuel markets are governed by competition and consumer law, overseen by the Competition and Markets Authority (CMA). The Government and the CMA are closely monitoring petrol and diesel prices in light of instability in the Middle East, and the Chancellor of the Exchequer and my Rt hon Friend the Secretary of State recently met with fuel retailers to set out a clear message: unfair practices will not be tolerated.

We are also engaging regularly with refiners, importers and distributors to ensure any emerging risks are identified and managed promptly. The government has also introduced the statutory Fuel Finder scheme, which will increase transparency for UK road fuel prices, including providing localised data for prices across the UK, and the CMA have the power to take enforcement action for non-compliance.

To pursue the option of further potential large-scale nuclear beyond Hinkley Point C and Sizewell C, the government has tasked Great British Energy - Nuclear (GBE-N) with identifying other suitable sites that could potentially host such a project.

GBE-N will report back to Ministers by Autumn 2026 on potential sites to inform future decisions in the next Spending Review and beyond.

Currently, nuclear generation provides around 15% of total electricity. The four Advanced Gas-cooled Reactor (AGR) stations at these locations are operating beyond their original forecasts, with current expected closures being planned well in advance by the operator (EDF). In September 2025, EDF announced Heysham 1 and Hartlepool power stations are now scheduled to generate until March 2028, an extension of 12 months. Heysham 2 and Torness are both scheduled to generate until March 2030. EDF’s ambition is to continue electricity production at its four generating AGR stations for as long as it is safe and commercially viable to do so and will keep station lifetimes under review.

Energy security is a priority for the government, and we work closely with the National Energy System Operator (NESO), Ofgem and key industry stakeholders to constantly monitor electricity supply against forecast demand to ensure electricity operators have the right tools to respond to market signals.

To pursue the option of further potential large-scale nuclear beyond Hinkley Point C and Sizewell C, the government has tasked Great British Energy - Nuclear (GBE-N) with identifying other suitable sites that could potentially host such a project.

GBE-N will report back to Ministers by Autumn 2026 on potential sites to inform future decisions in the next Spending Review and beyond.

In line with statements made to Parliament on 24^th March 2026, the Department is working with UKRI to launch a trial this winter.

The trial will test the removal of final consumption levies from increased consumer demand that responds to instances where there is abundant local renewable energy in grid constrained areas.

This will enable energy suppliers and flexibility service providers to offer periods of discounted power to households and businesses in such areas so that more of this power can be used.

Large-scale nuclear power stations, including Hinkley Point C and Sizewell C, will continue to make a vital contribution to our homegrown clean and secure energy mix, complementing small modular reactors.

To pursue the option of further potential large-scale nuclear, the government has tasked Great British Energy - Nuclear (GBE-N) with identifying other suitable sites that could potentially host such a project. GBE-N will report back to Ministers by Autumn 2026 on potential sites to inform future decisions in the next Spending Review and beyond.

Great British Energy (GBE) will operate in Northern Ireland (NI) as part of its commitment to deliver in all four nations of the UK. In line with its Strategic Plan, GBE will be taking forward the appropriate opportunities in Northern Ireland across all its activities. This includes onshore, offshore, local and supply chain.

GBE committed £1.62 million for community and public sector renewable projects in Northern Ireland. On 10 December, we announced that this funding will help Further Education Colleges to benefit from clean energy, through installation of Solar PV at a number of sites.

GBE are continuing to work with partners in Northern Ireland to inform the development of products and services, with further details to be processed later in the year as part of their LPP product portfolio.

On 11 December, GBE launched a £300m supply chain fund for offshore wind and networks. All areas of the UK will be eligible for funding, meaning projects may be located anywhere in the UK, including in Northern Ireland, subject to Windsor Framework considerations.

Responsibility for policy and financial support for renewable energy in Northern Ireland is largely devolved. The principal UK‑wide mechanism supporting renewable electricity in Northern Ireland has been the Northern Ireland Renewables Obligation (NIRO), administered by Ofgem as part of the wider Renewables Obligation framework. NIRO support is funded through electricity suppliers rather than direct Exchequer spending, and therefore does not constitute a single, ring‑fenced UK Government funding allocation.

Information on accredited installations, certificates issued and scheme costs is published annually by Ofgem. Decisions on new support schemes for renewable energy in Northern Ireland rest with the Northern Ireland Executive.

We expect most households to be able to consume the majority of electricity generated themselves.

However, any excess electricity generated from plug-in solar panels would be automatically exported to the grid.

The Reformed National Pricing Delivery Plan is a key part of our vision for the future GB electricity system. We published the delivery plan today.

The Government has taken action and announced £53 million for low-income families, who heat their homes with oil, or other alternative fuels like LPG, to help tackle surging prices through the Crisis and Resilience Fund (CRF).

It is at the local authority’s discretion to determine appropriate support by taking a person-centred, needs-based approach. Guidance to LAs is clear that crisis payments can be provided to support energy for any form of fuel that is used for the purpose of domestic heating, cooking or lighting, including oil or portable gas cylinders.

The Department for Work and Pensions is responsible for the CRF in England and more information on the fund can be found here: Crisis and Resilience Fund (1 April 2026 to 31 March 2029) - GOV.UK.

In addition, the Government intends to introduce new consumer protections for LPG customers and is rapidly exploring new ways to step in and ensure households are better protected.

The UK benefits from a diverse and resilient fuel supply chain and remains well supplied across all hydrocarbon fuels for transport, including road, maritime, and aviation sectors. The Government is working closely with industry to monitor supply, demand, and market conditions.

Data on oil stocks are published monthly in Energy Trends Table 3.11: https://www.gov.uk/government/statistics/oil-and-oil-products-section-3-energy-trends.

Data on monthly red diesel stocks and demand are published in Energy Trends Tables 3.11 and 3.13, respectively: https://www.gov.uk/government/statistics/oil-and-oil-products-section-3-energy-trends.

The Department does not publish estimates of days consumption.

Fuel markets are governed by competition and consumer protection law, overseen by the Competition Market Authority (CMA). The Government and the CMA are closely monitoring petrol and diesel prices in light of instability in the Middle East, and the Chancellor of the Exchequer and my Rt hon Friend the Secretary of State recently met with fuel retailers to set out a clear message: unfair practices will not be tolerated.

This government has also introduced the Fuel Finder scheme, which will increase price transparency so drivers can compare prices to find the best deal and incentivise greater competition.

Generation activated to meet the system’s inertia requirements does not set the wholesale price.

NESO meets system inertia requirements through procuring in the balancing and ancillary service markets, rather than the wholesale market. The wholesale market operates on the principle of marginal pricing, where the most expensive technology required to meet demand sets the price. However, the balancing market operates on a “pay as bid” model, where generators are paid based on the price they bid into the market, rather than the marginal price.

The Department operates a statutory scheme under the Energy Act 2004 to ensure that those responsible for constructing offshore energy installations are responsible for covering the financial liability of decommissioning.

Regardless of how an installation has been funded, financial securities are accrued to DESNZ during the lifespan of the installation. The process for this is set out in published Guidance for Industry.

In the case of Special Purpose Vehicles, each party involved will contribute their share of the costs, by acceptable means that are set out in the Guidance.

The Impact Assessment finds UK ETS compliance costs are modest relative to operators’ overall costs and does not identify significant consumer price impacts. This is expected to be consistent across maritime subsectors.

For ferries and passenger services, the Government has not undertaken route level modelling for the UK ETS domestic maritime expansion, as operators’ commercial decisions, vessel utilisation and fare structures vary widely.

The EU ETS, which includes some passenger ferries in scope, shows fare changes have generally been in the low single digit range. Early evidence from the EU scheme suggests short‑sea shipping routes and ferry fares increased by 3-11% under comparable carbon pricing.

The UK’s Special Representative for Climate will lead the UK delegation at the Conference.

The UK is fully committed to the transition away from fossil fuels, domestically and internationally, with recent events underlining once more the risks of being exposed to volatile international fossil fuel markets.

The Department recognises the requests to take steps to better enable local energy markets and trading to lower bills and increase the resilience of the electricity networks.

DESNZ is investigating barriers to local supply, and is working with Ofgem, Great British Energy and relevant stakeholders to find solutions that work in the best interests of local generators and consumers.

Ofgem and Elexon’s work on code modifications like P441 will help more community energy groups identify and understand the different routes to market in order to sell their energy.

Industry feedback informed the Draft Modification Report considered by the Panel on 12 March leading to the Final Modification Report submitted to Ofgem on 17 March.

The Department recognises the requests to take steps to better enable local energy markets and trading to lower bills and increase the resilience of the electricity networks.

DESNZ is investigating barriers to local supply, and is working with Ofgem, Great British Energy and relevant stakeholders to find solutions that work in the best interests of local generators and consumers.

Ofgem and Elexon’s work on code modifications like P441 will help more community energy groups identify and understand the different routes to market in order to sell their energy.

Industry feedback informed the Draft Modification Report considered by the Panel on 12 March leading to the Final Modification Report submitted to Ofgem on 17 March.

The Feed-in Tariffs (FIT) scheme closed to new applicants in 2019, with existing tariffs maintained and only adjusted for inflation annually.

The Smart Export Guarantee (SEG), introduced in January 2020, replaced the FIT export payment with a market-led mechanism requiring suppliers to offer tariffs for exported electricity. It supports the transition to smart and flexible energy systems and is designed to enable deployment without subsidies. The average bundled SEG tariff is 15.49p/kWh and with around 50 tariffs available on the market, the SEG provides consumer choice in a competitive market.

The government recognises that many businesses across the country will see the global events and be concerned about the impact on their fuel bills. We are monitoring the situation closely and actively engaging with industry and trade associations to understand what support may be needed.

It is vital that consumers are treated fairly. Price gouging will not be tolerated. My Rt hon Friend the Secretary of State has written to the heating oil industry setting out our expectations that they adhere to the industry’s Code of Practice.

We have also requested the CMA undertake a detailed examination of the heating oil market and we will work closely with the CMA to understand their findings and develop options to increase consumer protection.

The Warm Homes Plan will create 180,000 high-quality jobs in energy efficiency and clean heating by 2030. Chapter Six of the plan outlines the actions that the Government will be taking to support and facilitate growth, jobs and innovation. This includes establishing a new Workforce Taskforce in partnership with the Trade Unions Congress, the £8 million Warm Homes Skills Programme, and an extension of the Heat Training Grant.

I also recently led the ECO Supply Chain Transition Task and Finish Working Group which met on Tuesday 17 March to discuss support for the workforce affected by the closure of ECO. The group will coordinate sub-contracting and unblock barriers to SMEs and local supply chains accessing additional work on our expanded capital investment programmes.

The Low Carbon Dispatchable CfD signed with Drax sets out consequences in the event Drax have misrepresented information provided to HMG used when agreeing the strike price. This includes the right to revise the strike price or terminate the agreement under certain circumstances.

Ofgem, the independent regulator, found no evidence that Drax had deliberately misled Government or the wider public regarding the adequacy of the company’s procedures for ensuring that biomass is sourced in a sustainable manner.

The Prime Minister has been clear his number one domestic priority is helping families with the cost-of-living. To that end, the Government has announced £53 million for low-income families, who heat their homes with oil to help tackle surging prices.

In Northern Ireland, £17 million has been allocated, acknowledging the high levels of usage of heating oil there. The Northern Ireland Executive will have responsibility for the dispersal of these funds.

The Government is also working with the Northern Ireland Executive to ensure that consumer protections are fit for purpose for Northern Irish households, who are particularly reliant on heating oil.

Fuel markets are governed by competition and consumer law, overseen by the Competition and Markets Authority (CMA). The Government and the CMA are closely monitoring fuel and heating oil prices in light of instability in the Middle East, and the Chancellor of the Exchequer and my Rt hon Friend the Secretary of State recently met with fuel retailers to set out a clear message: unfair practices will not be tolerated.

We are providing over £50 million of immediate support for vulnerable heating oil customers, helping those that are most exposed. The government has also introduced the statutory Fuel Finder scheme, which will increase transparency for UK road fuel prices and the CMA have the power to take enforcement action for non-compliance.