Department for Energy Security & Net Zero

Through our Clean Power 2030 mission, we are reducing dependency on volatile global fossil fuel markets and delivering a diverse, secure and clean energy system based on renewables and nuclear, backed by a reserve of gas supply to be used only when essential.

Our work to date - reforming the connections queue, taking a clear decision on REMA and publishing roadmaps for key technologies like Solar and Clean Flexibility - has given a clear signal to industry. And we have now delivered the most successful renewables auction in history, with AR7 securing a record-breaking 8.4 gigawatts of offshore wind, which will power the equivalent of around 12m homes.

Evidence from DESNZ analysis and evaluations, including the evaluation of the Streamlined Energy and Carbon Reporting framework, suggests that well-designed climate and ESG disclosures can strengthen corporate governance, improve monitoring and management of emissions, and support firms to identify and implement emissions reduction measures. The Government therefore supports approaches that promote credible, science-based targets and transition planning.

The Government is working to reduce the risk of emissions displacement through adopting and supporting the use of internationally recognised sustainability standards.

The Government is also taking action to address carbon leakage, including by introducing a carbon border adjustment mechanism from January 2027. This will ensure highly traded, carbon intensive products from jurisdictions outside the UK face a comparable carbon price to that paid by UK manufacturers, so that UK decarbonisation efforts lead to a true reduction in global emissions rather than simply displacing carbon emissions overseas.

There is a high bar for any exemptions from the UK ETS. We are exempting ferries serving Scotland’s islands and peninsula communities given the unique and pressing challenges they face and the legal duties to consider island populations under the Islands (Scotland) Act 2018.

We will be evaluating the impacts of the scheme, as well as the existing exemptions, in a review of the maritime regime in 2028. We will not be extending this exemption to other UK islands at this time.

The Impact Assessment does not identify significant consumer price impacts and finds that compliance costs for domestic maritime operators are modest relative to their overall operating costs, with fuel and carbon costs forming only one part of total running costs. These findings are consistent with international evidence showing changes to ferry ticket prices in the low single digit range under equivalent carbon pricing.

The Government will review the maritime element of the United Kingdom Emissions Trading Scheme in 2028 to ensure that its impacts remain accurate, proportionate and fully assessed as the sector continues to decarbonise.

The government set out details of how it will deliver on its commitment not to issue further oil and gas licences to explore new fields in the North Sea Future Plan. The government has no intention of reconsidering this.

It typically takes up to 10 years for new licences to explore new fields to lead to production. Any additional supply from such fields would make only a marginal difference to overall production. It would not change the UK’s status as a net importer of oil and gas. It would have no material impact on prices nor on security of supply.

The North Sea Transition Authority (NSTA) publishes a Reserves and Resources report detailing annual estimates of remaining UK Continental Shelf (UKCS) oil and gas reserves and resources, including volumes that are not currently licensed or developed.

The most recent North Sea Transition Authority (NSTA) report was published in October 2025 and is available on the NSTA’s website. It estimates that the total unlicensed resource is around 5.1bn barrels of oil equivalent (bnboe), comprising 2.0 bnboe of marginal discoveries (42% gas) and 3.1 bnboe of prospective resource (34% gas).

This does not reflect the viability of reserves and probability of production. Due to the maturity of the basin, remaining reserves are often technically challenging and may not be commercially viable to extract.

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 and 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, which will increase transparency for UK road fuel prices and the CMA have the power to take enforcement action for non-compliance.

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 and 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, which will increase transparency for UK road fuel prices and the CMA have the power to take enforcement action for non-compliance.

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 and 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, which will increase transparency for UK road fuel prices and the CMA have the power to take enforcement action for non-compliance.

Fuel Finder is now live, with all petrol filling stations in the UK required to report their latest prices. Increasing price transparency will increase pressure on fuel retailers to compete strongly to attract consumers by lowering their prices, including in areas where competition has historically been weaker, such as rural areas.

The Competition and Markets Authority (CMA) have the power to take enforcement action for non-compliance, including imposing financial penalties.

The CMA recent annual report found that competition has not strengthened since 2023, which was consistent with significant price variations within and between local areas. The CMA has statutory information gathering powers to monitor the road fuels market and will use Fuel Finder data to further assess regional pricing.

Fuel Finder is now live, with all petrol filling stations in the UK required to report their latest prices. Increasing price transparency will increase pressure on fuel retailers to compete strongly to attract consumers by lowering their prices, including in areas where competition has historically been weaker, such as rural areas.

The Competition and Markets Authority (CMA) have the power to take enforcement action for non-compliance, including imposing financial penalties.

The CMA recent annual report found that competition has not strengthened since 2023, which was consistent with significant price variations within and between local areas. The CMA has statutory information gathering powers to monitor the road fuels market and will use Fuel Finder data to further assess regional pricing.

The Government has implemented the statutory open data scheme Fuel Finder, with all UK petrol filling stations now required to report their prices for petrol and diesel within 30 minutes of a change. Increasing price transparency will increase pressure on fuel retailers to compete strongly to attract consumers by lowering their prices.

Fuel Finder data is made available to data services such as mapping software and price comparison apps to enable consumers to compare petrol and diesel prices more easily and to shop around for the cheapest fuel.

The Government has implemented the statutory open data scheme Fuel Finder, with all UK forecourts now required to report their latest fuel prices, helping to improve transparency and increase competitive pressure on fuel retailers. The Motor Fuel Price (Open Data) Regulations 2025, which provide the legal framework for the scheme, came into force in early 2026. These measures apply nationally, including in West Dorset.

The Competition and Markets Authority (CMA) have the power to take enforcement action for non-compliance, including imposing financial penalties.

The CMA also has statutory information gathering powers to monitor the road fuel market and advise the Government if further intervention is required.

The Government has proposed a fully cost-reflective charging regime for its energy infrastructure planning application fees, in order to place this function on a sustainable footing for the future as application volumes increase. The Government is currently assessing the responses to the public consultation that ran from 16 December 2025 to 1 February 2026, which included specific questions on cost impacts.

This assessment will pay particular regard to the evidence provided by respondents on network operator costs and impacts on bills.

Ofgem was introduced as the heat network regulator in January 2026. While many leaseholders can benefit from the new consumer protections, including protection against poor service standards, we are aware that there are still some challenges where heat charges are ‘bundled’ with service charges and subject to the Landlord and Tenant Act 1985.

Ofgem have issued guidance on how suppliers should consider interactions between housing legislation and heat network regulation and we will continue to work with MHCLG to explore options to address these challenges.

The policy on encouraging rather than mandating developers to implement Soil Resources and Management Plans is set out in National Policy Statement EN-3 which was updated in 2026 and has been subject to public consultation and parliamentary scrutiny. The National Policy Statements set clear requirements that the mitigation hierarchy must be applied to environmental impacts. The requirement to produce a Soil Resources and Management Plan is frequently included in individual planning conditions enforced by local authorities. The effectiveness of planning policies and guidance are monitored to ensure mitigation and reporting requirements are still appropriate.

Government recognises that Network Operators play an important public service role in developing and maintaining an efficient, co-ordinated and economical system of electricity distribution and transmission – this includes securing the necessary permissions to install and maintain electric lines. These costs, including any costs associated with applying for a Necessary Wayleave, are not borne directly by Network Operators, but rather passed onto consumer energy bills through Ofgem regulated network charges.

The total value of non-contractual severance payments across the Department for Energy Security and Net Zero (DESNZ) was £22,500 in 2023, £nil in 2024 and £60,000 in 2025.

In January, we introduced Ofgem as the market regulator for heat networks. Heat network operators and suppliers are now required to demonstrate compliance with Ofgem’s Authorisation Conditions, including those on billing transparency and fair pricing.

Ofgem will be collecting data in the first year of regulation which will then be used to inform pricing benchmarks in 2027.

We are currently consulting on mandating minimum technical standards, including proposals to extend heat network metering to enable accurate and transparent billing to more consumers.

Consumer Led Flexibility (CLF) can play a key role in lowering household and business electricity bills. CLF, including that facilitated through the uptake of smart tariffs, gives those who choose to participate greater control over their energy usage, and the opportunity to save money.

The Clean Flexibility Roadmap includes a chapter on CLF with 42 actions to support it which are being delivered. It also set out on pages 8-9 typical electricity bill savings for those participating in it based on prices current at the time.

We are aware that some existing heat networks are not delivering to the standard they should be. We have and will continue to take steps to protect consumers: We have already taken action by introducing Ofgem as the market regulator who have the powers to tackle poor service standards. In the first year of regulation, they will be collecting performance data and consulting on Guaranteed Standards of Performance.

Heat network consumers who suffer a service outage can also seek redress through the Energy Ombudsman.

DESNZ is also consulting on mandatory technical standards for heat networks, that include proposals to ensure new and existing heat networks are designed, built, and operated to a standard, that will deliver good outcomes for consumers.

The trial will launch this winter and we anticipate that it will run until Spring 2028. Measures will be brought forward when parliamentary time allows to enable the government to make enduring changes based on the results of the trial.

The Autumn 2024 Budget allocated £500 million to the Warm Homes Local Grant to be delivered from 2025-28 by eligible local authorities. The WH:LG used an expression of interest model to allocate funding, with all eligible local authorities in England who expressed an interest allocated funding - details of these allocations are available on gov.uk.

Local authorities within the West Midlands and Greater Manchester Combined Authorities received an allocation of this funding as part of the Warm Homes and Public Sector Decarbonisation Devolution Programme

£5 billion of the total £15 billion funding for the Warm Homes Plan is allocated to low-income households, initially delivered through the Warm Homes: Social Housing Fund (WH:SHF) and the WH:LG. From 2027/28 onwards we intend to integrate these into a single low-income capital scheme shifting towards area-based delivery. We will say more about the evolution of low-income schemes by Spring 2026.

Our Hydrogen Allocation Rounds (HARs) are stimulating private investment in hydrogen projects across the UK, including in Wales. Two of the successful HAR1 projects are in Wales – the HyBont project in Bridgend and West Wales Hydrogen in Milford Haven. The latter recently announced its Final Investment Decision, which I was pleased to mark alongside the Secretary of State for Wales. This project alone represents an investment of over £50 million and is forecast to support over 60 jobs during construction and its operational phase. It will also strengthen domestic supply chains, by choosing Sheffield-based ITM Power to supply its electrolysers.

Industrial clusters, such as in South Wales, can support hydrogen production and use by co-locating supply with demand, which helps reduce infrastructure costs, transport requirements, and system risks during market scaleup.

Across the South Wales industrial cluster region, two hydrogen production projects, West Wales Hydrogen in Milford Haven and HyBont in Bridgend, have been awarded funding in the first Hydrogen Allocation Round. The West Wales project recently announced its Final Investment Decision. Together, they will supply local industry, supporting decarbonisation, create skilled jobs and encourage regional economic growth across the South Wales industrial cluster.

Through our Clean Power 2030 mission we are accelerating the transition to clean, homegrown electricity to shield end-users from the volatility of fossil fuel prices and to deliver reliable, affordable energy to every part of the UK economy.

We are already taking action to expand the British industry supercharger from April to reduce costs for the most energy-intensive businesses, and a significant proportion of businesses are on fixed-term contracts that shield them from market volatility for the contract duration. However, we recognise that at the point of contracting, businesses are exposed to international fossil fuel markets, and clearly, for both businesses and consumers, much will depend on the length of this crisis.

Just as we are looking across Government at the situation that households face, the Government is absolutely focused on the impact of the crisis on business and industry, and we will not hesitate to act.

Government is not prescriptive regarding the location of support provision for hydrogen infrastructure, and will assess transport & storage project applications on individual merit against criteria reflecting strategic objectives (e.g. deliverability, decarbonisation potential, and value for money), before contract negotiations with highest-scoring projects. Hydrogen Transport & Storage Business Models support recipients will have had to demonstrate ability to deliver value for money infrastructure, and will have agreed scale & cost of deliverables with Government. As long as projects meet eligibility criteria for the regional hydrogen network competition, they will be able to apply regardless of their location within Great Britain.

The Government intends to strengthen consumer protections in the domestic heating‑oil market, informed by the Competition and Markets Authority’s ongoing examination of the sector, which it announced on 20 March. The CMA also announced on 11 March that it is moving quickly to get to the bottom of troubling reports from heating oil customers about cancelled orders and sudden price increases. In parallel, the Government has made available £53M to support low-income families who heat their homes with oil to help tackle surging prices.

The UK’s standing as a current global leader in hydrogen is reflected in our comprehensive investible policy framework and the number of hydrogen businesses that are based in the UK and developing world-leading technologies for export.

Government is delivering real projects to kickstart the UK hydrogen economy, with contract signings for successful projects from the first Hydrogen Allocation round, with £2.3bn of revenue funding confirmed and a further £500m confirmed for a hydrogen transport and storage network.

The 10 Year Clean Energy Industries Sector Plan (2025) announced new investment to turbocharge growth in the sector and our renewed Hydrogen Strategy, which we plan to publish soon, will set out how we intend to work together with industry to continue to transform ambition into action.

In 2017, the Government explored potential opportunities to integrate carbon capture and storage (CCS) in the coal-to-chemicals sector in Xinjiang into China’s emissions trading scheme.

Officials have been unable to locate any information sought by the noble Lord that UK funding was provided to Xinjiang during this period, nor any information indicating that representations were received from Shell regarding this potential funding or its Enhanced Oil Recovery partnership with CNPC in Xinjiang at that time.

The Government supports Ofgem in ensuring through its regulation that grid investment benefits communities across Great Britain. In the next electricity distribution price control, ED3 (2028–2033), Ofgem is requiring distribution network operators to develop long term, integrated network development plans informed by Regional Energy Strategic Plans (RESPs). This will help ensure network investment appraisal better reflects regional economic development and decarbonisation potential, while continuing to protect consumers’ interests.

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By upgrading our air defence radars, this government will unlock up to 10GW of offshore wind capacity through projects in Scotland, East Anglia and North East England, £20bn in private investment and thousands of skilled jobs, supporting both national and energy security.

The Government’s contract is with BAE Systems. Work will take place at BAE Systems’ facilities in Cowes, sustaining high quality engineering jobs in the Isle of Wight. Further commercial aspects of BAE Systems’ bid are commercial matters for the supplier.

These new radars will be installed from 2029.

By upgrading our air defence radars, this government will unlock up to 10GW of offshore wind capacity through projects in Scotland, East Anglia and North East England, £20bn in private investment and thousands of skilled jobs, supporting both national and energy security.

The Government’s contract is with BAE Systems. Work will take place at BAE Systems’ facilities in Cowes, sustaining high quality engineering jobs in the Isle of Wight. Further commercial aspects of BAE Systems’ bid are commercial matters for the supplier.

These new radars will be installed from 2029.

By upgrading our air defence radars, this government will unlock up to 10GW of offshore wind capacity through projects in Scotland, East Anglia and North East England, £20bn in private investment and thousands of skilled jobs, supporting both national and energy security.

The Government’s contract is with BAE Systems. Work will take place at BAE Systems’ facilities in Cowes, sustaining high quality engineering jobs in the Isle of Wight. Further commercial aspects of BAE Systems’ bid are commercial matters for the supplier.

These new radars will be installed from 2029.

By upgrading our air defence radars, this government will unlock up to 10GW of offshore wind capacity through projects in Scotland, East Anglia and North East England, £20bn in private investment and thousands of skilled jobs, supporting both national and energy security.

The Government’s contract is with BAE Systems. Work will take place at BAE Systems’ facilities in Cowes, sustaining high quality engineering jobs in the Isle of Wight. Further commercial aspects of BAE Systems’ bid are commercial matters for the supplier.

These new radars will be installed from 2029.

Government recognises that the expiry of Renewables Obligation support from April 2027 could affect the commercial viability of generators in a sector which supports hundreds of jobs. As set out in the Methane Action Plan, Government is exploring the implementation of a long-term methane capture scheme with appropriate transitional arrangements.

DESNZ and Defra are giving careful consideration to the potential impact of proposals on workforce capacity and undertaking a rigorous value for money assessment. No final decisions have we been made and we will consult on the proposals later this year.

Historically, heat network performance, including outage duration and frequency has been unregulated in Great Britain, and as such the Department does not hold this data.

As the newly appointed market regulator for heat networks, Ofgem now have powers to collect performance data, and they will be consulting on introducing Guaranteed Standards of Performance.

The Heat Trust operate a voluntary scheme for heat networks, and participating heat networks are required to submit data to demonstrate their compliance with the scheme’s service standards.

The most recent report is available on their website.

HyLine Cymru applied for development expenditure funding under Ofgem's RIIO2 reopener mechanism. Government subsequently discussed the strategic value of this project with Ofgem who decided not to fund Hyline Cymru due to its lack of large-scale geological storage, which will be needed for the development of a regional hydrogen network. Decisions regarding funding provided under RIIO2 sit with Ofgem and therefore Government does not intend to revisit this decision.

The National Policy Statements require applicants to assess and mitigate for environmental impacts of their proposals across the lifecycle of the proposed development, including decommissioning. No specific assessment has been made on mandating the return of sites to their previous use. This requirement is usually included in a planning condition enforced by local authorities.

Developers are required to set out arrangements for decommissioning in their planning applications, as set out in National Policy Statement EN-3. The Department has no current plans to publish separate guidance.

The Government has signed a £95m contract with BAE Systems to deliver a technologically advanced radar that secures the coexistence of air defence and offshore wind, supporting both national and energy security.

These upgrades to the UK’s air defence radars will help unlock up to 10GW of offshore wind, £20bn in private investment and thousands of skilled jobs.

The Ministry of Defence has agreed to fund this contract, with financial support from the Department for Energy Security and Net Zero, as part of a mission-led government. Funding was allocated at the Spending Review 2025 and has not been diverted from wider RAF or Air Defence budgets.

The Government has signed a £95m contract with BAE Systems to deliver a technologically advanced radar that secures the coexistence of air defence and offshore wind, supporting both national and energy security.

These upgrades to the UK’s air defence radars will help unlock up to 10GW of offshore wind, £20bn in private investment and thousands of skilled jobs.

The Ministry of Defence has agreed to fund this contract, with financial support from the Department for Energy Security and Net Zero, as part of a mission-led government. Funding was allocated at the Spending Review 2025 and has not been diverted from wider RAF or Air Defence budgets.