Department for Energy Security & Net Zero

Government’s response to the consultation on increasing the minimum energy efficiency standard for private rented homes was accompanied by the Department’s Impact Assessment. The assessment provides an estimated impact of the final policy based on a range of data available, including HM Land Registry and property price data available for Wales. The measures included in the final policy are intended to be proportional to help manage the burden placed on landlords and the impact on the rental market, whilst still delivering improved, warmer, cheaper to heat homes for private rented sector tenants.

As part of the Warm Homes Plan the government is investing £5 billion in direct support for low-income households. This will initially be delivered through the Warm Homes: Local Grant (WH:LG) and Warm Homes: Social Housing Fund (WH:SHF).

All eligible households in England and Wales can also benefit from the expanded Boiler Upgrade Scheme (BUS), funded with £2.7 billion to 2030. This will provide more options for homes where a hydronic heat pump may not be the most appropriate solution, including air-to-air heat pumps and heat batteries.

Additionally, the government has published a consultation on alternative heating solutions which explores the role these technologies could play in ensuring that every household has a suitable low-carbon option. The consultation closed on 10 February, and a government response will follow in due course.

As set out in the Warm Homes Plan, we will consult this year on options for bringing the oversight of energy efficiency and microgeneration installations for government schemes under closer government control and the role of the Warm Homes Agency.

We have received similar recommendations from both the NAO and the PAC. We are considering these reports and the recommendations and will be responding to these in full in due course.

The Department will publish monitoring statistics and evaluation of policies announced in the Warm Homes Plan. DESNZ currently publishes statistics covering the uptake and impacts of energy efficiency measures on GOV.UK.

In June 2022, following consideration of integrating Northern Ireland (NI) into the Great Britain Contracts for Difference (CfD) scheme, former BEIS and Department for Economy (DfE) Ministers agreed that NI DfE would develop their own scheme with some advisory support from UK government. In September 2025, DfE published the Final Scheme Design for the Renewable Electricity Price Guarantee (REPG) scheme. Ports and factories in Northern Ireland remain eligible for the Clean Industry Bonus part of the CfD.

The Warm Homes Plan sets out in detail how the government's £15 billion investment into home upgrades will be allocated to individual schemes. While there is no specifically ring-fenced funding for off-gas grid homes, the package will support these homes to decarbonise in a variety of ways.

Additionally, the government has published a consultation on alternative heating solutions which explores the role these technologies could play in ensuring that every household has a suitable low-carbon option. The consultation closed on 10 February, and we will issue the Government response in due course.

Under the newly established heat network market framework, Ofgem Authorisation conditions limit back-billing to 12 months if no accurate bill or statement of account was previously provided.

Where heat charges are ‘bundled’ into leasehold or social housing charges, the Landlord and Tenant Act (1985), takes precedence. Under these rules, landlords have 18 months to notify or demand service charge payments, once costs have been incurred.

Ofgem have issued guidance, setting out their expectation that all heat network suppliers should adhere to the 12 month back-billing limit.

Heat networks consumers can get help and advice from Citizens Advice and Consumer Scotland. In addition, the Energy Ombudsman provides Alternative Dispute Resolution for heat network consumers.

Under the newly established heat network market framework, Ofgem Authorisation conditions limit back-billing to 12 months if no accurate bill or statement of account was previously provided.

Where heat charges are ‘bundled’ into leasehold or social housing charges, the Landlord and Tenant Act (1985), which caps back-billing at 18 months, takes precedence.

We are working closely with the Ministry of Housing, Communities to explore unbundling individual consumption of heat from service charges so that the 12-month back billing rules apply to all heat network consumers.

The MoU provides a strong platform for deepening cooperation across the full breadth of our shared energy priorities – from power market reform and system flexibility to carbon capture, utilisation and storage –and creates space for structured exchanges on the UK’s experience transitioning away from coal, enabling both sides to share lessons and support an accelerated, orderly and affordable clean‑energy transition.

There is no presumption that Memoranda of Understanding be made publicly available, a decision that varies from agreement to agreement; indeed, the previous government did not publish the first clean‑energy agreement signed with China in 2015.

The MoU provides a strong platform for deepening cooperation across the full breadth of our shared energy priorities – from power market reform and system flexibility to carbon capture, utilisation and storage –and creates space for structured exchanges on the UK’s experience transitioning away from coal, enabling both sides to share lessons and support an accelerated, orderly and affordable clean‑energy transition.

There is no presumption that Memoranda of Understanding be made publicly available, a decision that varies from agreement to agreement; indeed, the previous government did not publish the first clean‑energy agreement signed with China in 2015.

The MoU provides a strong platform for deepening cooperation across the full breadth of our shared energy priorities – from power market reform and system flexibility to carbon capture, utilisation and storage –and creates space for structured exchanges on the UK’s experience transitioning away from coal, enabling both sides to share lessons and support an accelerated, orderly and affordable clean‑energy transition.

There is no presumption that Memoranda of Understanding be made publicly available, a decision that varies from agreement to agreement; indeed, the previous government did not publish the first clean‑energy agreement signed with China in 2015.

The MoU provides a strong platform for deepening cooperation across the full breadth of our shared energy priorities – from power market reform and system flexibility to carbon capture, utilisation and storage –and creates space for structured exchanges on the UK’s experience transitioning away from coal, enabling both sides to share lessons and support an accelerated, orderly and affordable clean‑energy transition.

There is no presumption that Memoranda of Understanding be made publicly available, a decision that varies from agreement to agreement; indeed, the previous government did not publish the first clean‑energy agreement signed with China in 2015.

The MoU provides a strong platform for deepening cooperation across the full breadth of our shared energy priorities – from power market reform and system flexibility to carbon capture, utilisation and storage –and creates space for structured exchanges on the UK’s experience transitioning away from coal, enabling both sides to share lessons and support an accelerated, orderly and affordable clean‑energy transition.

There is no presumption that Memoranda of Understanding be made publicly available, a decision that varies from agreement to agreement; indeed, the previous government did not publish the first clean‑energy agreement signed with China in 2015.

The MoU provides a strong platform for deepening cooperation across the full breadth of our shared energy priorities – from power market reform and system flexibility to carbon capture, utilisation and storage –and creates space for structured exchanges on the UK’s experience transitioning away from coal, enabling both sides to share lessons and support an accelerated, orderly and affordable clean‑energy transition.

There is no presumption that Memoranda of Understanding be made publicly available, a decision that varies from agreement to agreement; indeed, the previous government did not publish the first clean‑energy agreement signed with China in 2015.

The MoU provides a strong platform for deepening cooperation across the full breadth of our shared energy priorities – from power market reform and system flexibility to carbon capture, utilisation and storage –and creates space for structured exchanges on the UK’s experience transitioning away from coal, enabling both sides to share lessons and support an accelerated, orderly and affordable clean‑energy transition.

There is no presumption that Memoranda of Understanding be made publicly available, a decision that varies from agreement to agreement; indeed, the previous government did not publish the first clean‑energy agreement signed with China in 2015.

The MoU provides a strong platform for deepening cooperation across the full breadth of our shared energy priorities – from power market reform and system flexibility to carbon capture, utilisation and storage –and creates space for structured exchanges on the UK’s experience transitioning away from coal, enabling both sides to share lessons and support an accelerated, orderly and affordable clean‑energy transition.

There is no presumption that Memoranda of Understanding be made publicly available, a decision that varies from agreement to agreement; indeed, the previous government did not publish the first clean‑energy agreement signed with China in 2015.

In February the Department for Energy Security and Net Zero published a response to consultations on proposals to amend the inflation indexation of the Renewables Obligation and Feed-in Tariff schemes. Lowering levy costs through reforms such as these forms part of the work that government is doing to bear down on costs across the energy system to ensure that consumers do not see a net increase in their electricity bills as a result of this measure. More widely, at the last Budget government took an average of £150 of costs off household energy bills from this coming April.

Through the Local Power Plan, Great British Energy will invest up to £1 billion to support at least 1,000 local and community energy projects across the country by 2030.

Funding for the Plan will be administered by Great British Energy. It will not be delivered through the Internal Markets Act.

GBE will work with the devolved governments to complement existing support and identify new opportunities for collaboration.

The Department’s energy and emissions projections include growth in power demand from computing services such as data centres. However, to ensure a comprehensive view of the energy system, the methodology projects at a broader sector level, not disaggregating specific estimates for data centres.

The Capacity Market ensures supply meets demand. It operates by securing most of the required capacity four years in advance, with additional capacity secured one year ahead based on updated forecasts. This approach ensures Great Britain meets the Reliability Standard, which balances cost and reliability to maintain adequate electricity security.

The UK’s refining capacity is very important to our energy security, resilience, as an industrial base to the continued growth of our regions. This government recognises the wider challenges facing the sector and know that tackling these together is vitally important.

Under the UK Emissions Trading Scheme, free allocations are provided to the refining sector to mitigate the risk of carbon leakage and reduce exposure to the carbon price.

Linking the UK ETS and EU ETS is expected to bring significant economic benefits to the UK, including a cheaper path towards decarbonisation by providing businesses with access to a larger, stable carbon market and creating the conditions for mutual CBAM exemptions, removing a major barrier to trade and lowering costs for UK firms.

The Government understands the need to target support to those who need it most. That is why on 30 January, we announced the continuation of the Warm Home Discount scheme, providing around 6 million eligible households with the £150 rebate on their energy bills every winter until 2030/31. This means that millions of households every year who need support with their energy bills will receive the Warm Home Discount for the rest of the decade.

We also committed to exploring additional improvements to the scheme. While we consider options for future bill support, we are working across Government to improve access to and sharing of data to target support more effectively in the future. Specifically, the ‘Kickstarter’ programme under the National Data Library will test how public sector data can be better joined up to improve access to government programmes.

The Government understands the need to target support to those who need it most. That is why on 30 January, we announced the continuation of the Warm Home Discount scheme, providing around 6 million eligible households with the £150 rebate on their energy bills every winter until 2030/31. This means that millions of households every year who need support with their energy bills will receive the Warm Home Discount for the rest of the decade.

We also committed to exploring additional improvements to the scheme. While we consider options for future bill support, we are working across Government to improve access to and sharing of data to target support more effectively in the future. Specifically, the ‘Kickstarter’ programme under the National Data Library will test how public sector data can be better joined up to improve access to government programmes.

By law, network charging is a matter for Ofgem, the independent regulator.

Fixed charge banding rules, including migration, are set out in the DCUSA industry code (Schedule 32). They limit migration to exceptional circumstances, including significant change in capacity or consumption. There are some proposals to change banding rules (DCPs 412, 420, 454, and 466), which will be subject to final Ofgem approval. The DCUSA Secretariat can provide information about these rules/ proposals.

Ofgem has launched the Cost Allocation and Recovery Review (CARR), which is assessing whether there are more efficient and fairer ways to allocate and recover system costs.

The final monthly data collected during the year is already published in the OSCAR annual release dataset with the TYPE_LONG_NAME of “IN-YEAR RETURN” and the adjustments to align final outturn with the published annual report and accounts is shown against “FINAL OUTTURN”.

The MoU provides a strong platform for deepening cooperation across the full breadth of our shared energy priorities – from power market reform and system flexibility to carbon capture, utilisation and storage –and creates space for structured exchanges on the UK’s experience transitioning away from coal, enabling both sides to share lessons and support an accelerated, orderly and affordable clean‑energy transition. There is no presumption that Memoranda of Understanding be made publicly available, a decision that varies from agreement to agreement; indeed, the previous government did not publish the first clean‑energy agreement signed with China in 2015.

The Government is introducing sustainable supply chain requirements in contracts and grants. The Procurement Act 2023, now in force, allows contracting authorities to exclude suppliers, helping prevent government contracts from being awarded to those who cannot meet ethical and industry-specific standards. The Overseas Business Risk Guidance highlights regional risks and urges companies to carry out strong due diligence. The Trade Strategy published last year launched a review of responsible business conduct policy.

The Warm Homes Plan is backing British manufacturing, with £140million of investment including through the Heat Pump Investment Accelerator to strengthen supply chains, drive innovation, support workforce training and create high-quality jobs across the UK.

The Government does not hold or publish data identifying which UK‑registered firms imported component parts for solar panels containing polycrystalline silicon from China, nor data on how many of these components may have originated from the Xinjiang Uyghur Autonomous Region.

Solar purchasing thus far has been undertaken by Devolved Governments, Other Government Departments, and relevant Mayoral Combined Authorities and the terms are commercially confidential. However, there have been clear expectations that they must comply with UK procurement rules, including requirements under the Modern Slavery Act 2015 and Procurement Act 2023.

Great British Energy will lead the way in ethical supply chains by engaging with stakeholders to raise standards and explore alternatives to diversify high-risk supply chains.

The Department for Education are procuring the solar panels for schools under the Solar Partnerships Scheme and have done so under the requirements set out by the Modern Slavery Act 2015 and UK procurement controls, as well as making use of Crown Commercial Service frameworks where appropriate.

As a publicly owned company, Great British Energy is expected to lead by example when adhering to the UK’s legislation and guidance on modern slavery, including the Modern Slavery Act 2015.

Embracing the opportunities that AI offers to drive economic growth and productivity is a core government objective. As per the government funded AI for Decarbonisation Virtual Centre of Excellence’s annual report, AI can support delivery of Clean Power by 2030 by enabling low carbon electricity generation, improving grid access, and enhancing the efficient operation of the energy system. As part of the government’s wider AI-and-decarbonisation programme, we launched a review of the grid by the AI Champion for Clean Energy. This will provide an expert assessment of the opportunities, risks, and enablers for AI technologies, aligning government, regulators, and industry.

The Government does not hold or publish data on the specific sources of polycrystalline silicon imported into the UK from China for use in solar panel manufacturing.

Embracing the opportunities that AI offers to drive economic growth and productivity is a core government objective. As per the government funded AI for Decarbonisation Virtual Centre of excellence’s annual report, AI can support delivery of Clean Power by 2030 by enabling low carbon electricity generation, improving grid access, and enhancing the efficient operation of the energy system. As part of the government’s wider AI-and-decarbonisation programme, we are launching a review led by the AI Champion for Clean Energy. This will provide an expert assessment of the opportunities, risks, and enablers for AI technologies, aligning government, regulators, and industry.

A National Audit Office (NAO) report published on 20^th March 1998 on the sale of AEA Technology sets out that then Department of Trade and Industry (DTI) sold AEA Technology (formerly part of the UK Atomic Energy Authority) in 1996 for £224 million. In addition, DTI received a dividend of £3.75 million giving total gross proceeds of £227.75 million.

The Government has not undertaken route level ferry fare modelling for the UK ETS domestic maritime expansion. This is because, as we set out in the Impact Assessment, operators’ commercial decisions, vessel utilisation and fare structures vary widely. The qualitative assessment indicates that any passthrough to consumers is likely to be modest.

The Government will review the maritime element of the UK ETS in 2028 with further consideration of regional or distributional impacts.

We will look to use our new Warm Homes Fund to help local authorities accelerate their existing consumer offers for low carbon technologies. In addition, Crown Commercial Services and Great British Energy are testing approaches to aggregating demand for these technologies to drive down unit costs for both social housing landlords and the public sector estate.

The Government will also provide support to local government, enabling successful delivery at the local level, including through the new Warm Homes Agency which will play a pivotal role in supporting local partnerships, convening, facilitating and supporting where necessary to build capacity within local government. Government is also funding five Local Net Zero Hubs which support local authorities to develop decarbonisation projects and attract commercial interest.

The Warm Homes Agency will play a critical role in place-based delivery and work closely with local partners, including combined authorities. The Agency will seek to build on their good practice in local delivery, convening and supporting where necessary to build capacity to enable delivery to be led at a local level. The full scope of the Agency, including how it will work with combined authorities, is being finalised and will be confirmed in due course.

The cost estimates used in the Clean Energy Campaign are based on the total energy for a home with a gas boiler including both gas and electricity costs (e.g. for lighting and appliances). Details for the assumptions behind the analysis are provided in the section marked “*How we calculated heat pump savings” on the campaign web page https://cleanenergy.campaign.gov.uk/heat-pump/. The analysis in the campaign assumed an annual gas demand of 12,200kWh, which is well aligned to OFGEM’s ‘Medium’ typical domestic consumption value of 11,500kWh.

The Scottish consenting reforms taken forward by the Planning and Infrastructure Act will make the electricity infrastructure consenting system more efficient, more predictable, and look to reduce overall consenting timescales. The Government also aims to adopt reforms to environmental legislation for offshore wind in Spring 2026. Collectively these measures will enable the rapid deployment of clean power which is vital for our energy security. Ultimately planning decisions in Scotland are the responsibility of the Scottish Government.

In the Hamburg Declaration, the North Sea countries have committed to deepen collaboration on enhanced availability of skilled workers, knowledge and expertise transfer, and upskilling.

Although skills is devolved to the Scottish Government, the UK Government is investing in programmes to support those workers transitioning from oil and gas into renewables.

As set out in the Clean Energy Jobs Plan, up to £20m in joint UK and Scottish Government funding is being provided to the Oil and Gas Transition Training Fund, supporting North Sea workers to retrain into renewable roles. This builds on the successful pilot launched in July 2025 in Aberdeen and Aberdeenshire.

The Government is also supporting the expansion of the industry-led Energy Skills Passport and introducing a North Sea Jobs Service.

The full scope of the Warm Homes Agency, including any role in funding allocation, is being finalised and will be confirmed in due course.

Government is designing the Hydrogen Transport and Storage Business Models to establish the UK’s first regional hydrogen network to be in operation from 2031. To enable delivery, government has confirmed over £500m of support for hydrogen infrastructure following the June 2025 Spending Review The location of this network will be carefully chosen to maximise the benefits to UK industrial sectors and create a pathway for hydrogen as a clean power source.

We recognise that offshore technologies have the potential to provide large-scale hydrogen storage and will continue to assess how different storage technologies may meet our strategic objectives.

The Warm Homes Agency will seek to operate and optimise delivery at a local level, across the whole of the UK, subject to agreement with Devolved Governments. The Agency will work closely with local partners, supporting and bolstering excellent work already being delivered by many strategic and local authorities. The specifics of the scope of the Agency, including where it will operate and how it will be organised, are being finalised.

The inclusion of the maritime sector in the UK ETS will, in combination with other enabling policies, strengthen the effectiveness of the scheme in incentivising investment in decarbonisation across the covered sectors.

Specifically, the scheme provides a clear price signal that supports investment in cleaner vessels, operational efficiency and emerging low carbon fuels.

The policy is expected to deliver a net reduction of approximately 645,000 tonnes of carbon dioxide equivalent over the next 20 years.