Department for Energy Security & Net Zero

Ofgem administer the Warm Home Discount Scheme Industry Initiatives of behalf of the Department. Their most recent assessment was for winter 2023/24 where Industry Initiatives delivered £76.4 million in support (£65.5 million in England & Wales and £10.9 million in Scotland) – an increase of £44.3 million compared with winter 2022/23. These initiatives supported over 2.8 million consumers across Great Britain by providing a range of services, including energy efficiency measures, energy and smart meter advice, debt assistance, benefit checks, and financial assistance payments.

The Department sets the overall policy and spending targets for the scheme, but the financial responsibility for Industry Initiatives lies with the suppliers. In 2023/24, 47 Industry Initiatives were funded in England & Wales and 25 in Scotland. The services and their associated consumer support values included:

• Energy efficiency measures: £21.79m (England & Wales)
• Energy advice: £11.63m (England & Wales), £2.47m (Scotland)
• Debt assistance: £11.51m (England & Wales), £1.17m (Scotland)
• Financial assistance payments: £9.72m (England & Wales), £4.35m (Scotland)
• Benefit checks: £5.01m (England & Wales), £0.66m (Scotland)
• Mobile homes: £0.84m (England & Wales), £0.21m (Scotland)
• Referrals: £0.06m (England & Wales)
• Over 1.7 million consumers were supported in England & Wales and nearly 1.1 million in Scotland.

For more detailed information on this latest assessment, please visit https://www.ofgem.gov.uk/publications/warm-home-discount-annual-report-scheme-year-13

Ofgem administer the Warm Home Discount Scheme Industry Initiatives of behalf of the Department. Their most recent assessment was for winter 2023/24 where Industry Initiatives delivered £76.4 million in support (£65.5 million in England & Wales and £10.9 million in Scotland) – an increase of £44.3 million compared with winter 2022/23. These initiatives supported over 2.8 million consumers across Great Britain by providing a range of services, including energy efficiency measures, energy and smart meter advice, debt assistance, benefit checks, and financial assistance payments.

The Department sets the overall policy and spending targets for the scheme, but the financial responsibility for Industry Initiatives lies with the suppliers. In 2023/24, 47 Industry Initiatives were funded in England & Wales and 25 in Scotland. The services and their associated consumer support values included:

• Energy efficiency measures: £21.79m (England & Wales)
• Energy advice: £11.63m (England & Wales), £2.47m (Scotland)
• Debt assistance: £11.51m (England & Wales), £1.17m (Scotland)
• Financial assistance payments: £9.72m (England & Wales), £4.35m (Scotland)
• Benefit checks: £5.01m (England & Wales), £0.66m (Scotland)
• Mobile homes: £0.84m (England & Wales), £0.21m (Scotland)
• Referrals: £0.06m (England & Wales)
• Over 1.7 million consumers were supported in England & Wales and nearly 1.1 million in Scotland.

For more detailed information on this latest assessment, please visit https://www.ofgem.gov.uk/publications/warm-home-discount-annual-report-scheme-year-13

The Government recognises the importance of local places in driving net zero action. Local government has autonomy and flexibility in how they deliver net zero, according to each local area’s varying needs and opportunities. DESNZ regularly engages with local government on key net zero issues, including through the Local Net Zero Delivery Group.

The Government’s strengthened biodiversity duty was introduced through the Environment Act 2021. This duty requires all public authorities to consider actions to conserve and enhance biodiversity. The strengthened duty will ensure public authorities make the conservation and enhancement of biodiversity a core part of the delivery of their functions.

The Government will implement the Competition & Markets Authority's recommendation to help drive down pump prices by introducing a statutory open data scheme, Fuel Finder, at the end of 2025. This scheme will increase fuel price transparency, enabling drivers to compare prices easily and make more informed decisions on where to buy petrol and diesel. By introducing this statutory open data scheme, petrol filling stations will face increased competition, leading to a reduction in fuel prices across the UK, including in rural areas.

The Government is working to create a CCUS industry and provide increased support to UK CCUS by allocating £9.4 billion in capital budgets over the Spending Review period.

South Wales Industrial Cluster was awarded approximately £20 million in grant funding between 2019 and 2024 as part of the Industrial Decarbonisation Challenge, helping projects develop comprehensive plans to achieve net-zero emissions and deploy low carbon technologies.

Government is actively engaging industry on non-pipeline transport costs, risk allocation and economic licensing, aiming to publish a consultation later this year. A Call for Evidence is also planned for Q3 2025 on network strategy.

The South Wales Industrial cluster is home to many longstanding and globally recognised businesses. Our modern Industrial Strategy has already set out further support for key growth sectors including foundational sectors such as chemicals.

This government sees the transition to net zero as the economic opportunity of the century. This is a chance to create good jobs, to drive investment to all parts of the UK and protect our energy security, while also ensuring fairness for workers across the country including in South Wales. We will set out further details of our plans to decarbonise industry and help them seize the opportunities of the transition in the Carbon Budget and Growth Delivery Plan in October.

EDF has announced it will in principle invest into Sizewell C such that its stake in the project would be 12.5% following a final investment decision (FID).

Details of the commercial structure of Sizewell C are commercially sensitive as we conclude the capital raise process – further details will be published at the point of FID.

Sizewell C is expected to support around 10,000 jobs at peak construction and thousands more in the wider supply chain, as well as creating 1,500 apprenticeships. Sizewell C has 3500 UK suppliers and plans to award 70% of construction value to UK businesses.

This Government is committed to attracting the investment required to deliver future nuclear projects. The UK has long established relationships with international partners considering civil nuclear deployment.

EDF has announced it will in principle invest into Sizewell C such that its stake in the project would be 12.5% following a final investment decision (FID).

Details of the commercial structure of Sizewell C are commercially sensitive as we conclude the capital raise process – further details will be published at the point of FID.

Sizewell C is expected to support around 10,000 jobs at peak construction and thousands more in the wider supply chain, as well as creating 1,500 apprenticeships. Sizewell C has 3500 UK suppliers and plans to award 70% of construction value to UK businesses.

This Government is committed to attracting the investment required to deliver future nuclear projects. The UK has long established relationships with international partners considering civil nuclear deployment.

As interim Minister for nuclear, I am responsible for the regulation of non-power generating nuclear facilities for civil nuclear fission research and development within DESNZ. Other Departments may hold responsibility for non-power generating nuclear facilities depending on the use case. The responsibility for the production of healthcare-related materials sits with the Department of Health and Social Care.

On 8 July 2025, DESNZ launched a public consultation on consents, land access, and rights for electricity network infrastructure. This consultation includes proposals related to the expansion of permitted development rights for electricity infrastructure, as referenced on page 82 of ‘The UK’s Modern Industrial Strategy.’

This consultation also addresses a range of related matters such as land access rights, tree lopping, permitted development for substations, Section 37 consents, and thresholds for Nationally Significant Infrastructure Projects. These broader reforms are intended to streamline the system, reduce burdens, and accelerate network deployment while ensuring appropriate protections for landowners, communities, and the environment.

My Rt. Hon. Friend the Secretary of State meets regularly with Cabinet colleagues to discuss a range of issues.

In its most recent ‘Fiscal risks and sustainability report’ (2025), the OBR is clear that the costs of climate damage are getting higher, while the cost of the net zero transition is getting lower. Only by investing in the transition now can we reduce costs in future.

We recognise the importance of facilitating a competent and robust supply chain. All installations under government energy efficiency schemes, including the Great British Insulation Scheme, must be carried out by a TrustMark registered business. This includes a requirement to meet independent industry standards and to provide a warranty to the householder, in case something goes wrong.

The government recognises the need to reform a fragmented system and will introduce plans to drive-up quality and protect consumers through the Warm Homes Plan.

All installations under government energy efficiency schemes, including the Great British Insulation Scheme, must be carried out by a TrustMark registered business. TrustMark registered installers are required to provide consumers with guarantees from a TrustMark approved guarantee provider. TrustMark have a 3-step dispute resolution process for when things go wrong which includes liaising with the original installer to carry out any required repairs in the first instance. Further information on the steps consumers can take and financial protection for installations can be found on TrustMark’s website here: https://www.trustmark.org.uk/

There are no current plans to publish a risk register. Great Britain has a highly resilient energy network. The National Energy System Operator has all the tools it needs to operate the electricity system reliably and can call on a range of technologies to balance electricity supply and demand, including gas-fired generation and flexible technologies such as batteries and demand side response.

Ofgem publishes historical price cap amounts, including broken down by region: Energy price cap (default tariff) levels | Ofgem. The data is not available at constituency level.

The main reason for the increases to the price cap since 2022 is an increase in wholesale energy costs which are influenced by international fossil fuel markets which we cannot control. This is why our Clean Power 2030 Mission is so vital. The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently. The creation of Great British Energy will help us to harness clean energy and have less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030.

We recognise that we need to support households struggling with bills whilst we transition to clean power by 2030. On 19 June we announced that we are expanding the Warm Home Discount to around an additional 2.7 million households. This means that from next winter, around 6 million low-income households will receive the £150 support to help with their energy bill costs.

Government recently consulted on increasing minimum energy efficiency standards in the domestic private rented sector. The consultation included proposals for rented homes to achieve Energy Performance Certificate C or equivalent by 2030, and was accompanied by the Department’s initial consultation-stage impact assessment.

The consultation has now closed, and we are currently analysing responses and reviewing evidence on the potential impact of these proposals. Following this, a government response and further impact assessment will be published.

The options referred to in that response, including delivery options for decarbonisation, are being finalised. Further information will be announced in due course.

The Warm Home Discount statistics for 2024-25 were published on 26^th June 2025. These statistics cover receipt of the WHD for winter 2024/25. Estimates of future eligibility are not available at county or constituency level. Across Great Britain, we will be extending the WHD to an estimated additional 2.7 million households and bringing the overall number of households supported to around 6 million.

Ofgem is a non-ministerial government department. It has its own policies regarding the procurement and provision of equipment.

The total spent on ‘working from home’ equipment reflects an increased headcount to deliver additional remit for key government priorities, and steps to reduce its London office footprint to save money. In each of the last three financial years Ofgem spend is:

Consumer led flexibility reduces electricity system costs for all by minimising the amount of peaking generation and associated network infrastructure that needs to be built in the long term. Modelling shows that deploying short duration flexibility such as consumer led flexibility, battery storage and interconnectors, could reduce electricity system costs by up to £70bn by 2050.

Our reforms through the Review of Electricity Market Arrangements to the current national pricing model deliver better incentives for industrial investment in Scotland in the coming years by encouraging market stability and investment. This will support the timely delivery of new generation in the right places – which is designed to lower consumer bills in GB, including Scotland.

Scotland is at the forefront of the drive towards clean energy, with Great British Energy headquartered in Aberdeen and Cromarty Firth recently being awarded £56 million to become the UK’s first floating offshore wind port capable of making turbines at scale.

The National Energy System Operator (NESO) is responsible for the strategic planning and design of the GB electricity system. NESO’s November 2024 advice on the upgrades and new projects required on the GB high voltage network to deliver clean power 2030 was reflected in the Government’s Clean Power 2030 Action Plan. A map showing these projects and some required beyond 2030 is available online at https://www.neso.energy/publications/beyond-2030/web-map

Scaling up homegrown renewables reduces the UK’s exposure to volatile global fossil fuel prices, which protects consumer energy bills against future price shocks. The CfD two-way payment mechanism protects consumers when electricity prices are high, as if the reference price is above the strike price, the generator must pay back the difference.

During the energy bill crisis over Winter 22/23, when wholesale electricity prices were higher, the CfD scheme reduced the amount needed to deliver our energy bill support schemes by around £18 per typical household. [1]

[1] This estimate is based on DESNZ analysis of the 2022/23 Ofgem price cap and wholesale cost allowance methodology for Q4 2022 and Q1 2023.

According to a study led by the University of Plymouth, the UK and the British Channel Islands has one of the world’s best tidal resources, estimated to be a potential capacity of around 11.5GW.

The Channel Islands, as Crown Dependencies, are self-governing jurisdictions that are not part of the UK, and so the UK Government is not responsible for energy policy there. DESNZ engages with the CDs on energy matters, including renewable energy policy, under the British-Irish Council Energy Work sector.

This Government supports significant growth in consumer-led flexibility, as set out in the Clean Power 2030 Action Plan. We are grateful to the Association for Decentralised Energy for its work in this area. In our Action Plan, Government committed to publishing a Flexibility Roadmap in 2025. The Roadmap will set out further detail on how the benefits of clean flexibility will be unlocked for the consumer, following the assessment of relevant evidence.

On 21 May, the government published a working paper on community benefits and shared ownership of low carbon energy infrastructure. The working paper intends to gather insight on proposals for mandatory community benefit scheme in Great Britain, including the types of energy infrastructure that could be captured, an appropriate level of benefit, and how best this could be calculated. The responses to the working paper will inform next steps on approach and policy design, and the government expects to publish a full response in due course.

Great Britain has a highly resilient energy network. The National Energy System Operator has all the tools it needs to operate the electricity system reliably and can call on a range of technologies to balance electricity supply and demand, including gas-fired generation and flexible technologies such as batteries and demand side response.

The Clean Power 2030 Action Plan sets out measures to increase consumer led flexibility (also known as demand-side response). Further details will be set out in the Clean Flexibility Roadmap that Government committed in the Action Plan to publish this year.

The UK Government is committed to supporting the growth of the hydrogen economy through its Hydrogen Allocation Rounds (HARs). In the first hydrogen allocation round (HAR1), announced in December 2023, 11 projects were selected to receive over £2 billion in revenue support for green hydrogen production. Additionally, £90 million in capital grant funding was awarded, with the potential to create up to 760 new jobs.

This includes Bradford Low Carbon Hydrogen, located in Bradford city centre, which will produce hydrogen for diggers and buses. Published subsidy award details for this project include a Direct Grant of £13 million and £396 million under the Hydrogen Production Business Model. The exact amount of funding will depend on the hydrogen produced at the site over a 15 year period.

Great Britain has a highly stable and resilient energy system with diverse supplies.

The National Energy System Operator (NESO) continuously monitors the electricity system and ensures sufficient inertia and negative and positive reserves to manage large generation or demand losses, including through retirements of gas plant. In the transition to clean power, we are deploying the technologies needed to ensure the energy system remains resilient. In Great Britain, for example, NESO procure alternative technologies such as synchronous condensers and flywheels and use sub-second response services to manage frequency changes and maintain system stability.

On 21 May, the government published a working paper on community benefits and shared ownership of low carbon energy infrastructure. The government recognises that community benefit funding from renewable energy infrastructure creates opportunities for long term investment into host communities, and the government believes that funding packages will have the most impact if they can be tailored to the community’s preferences and priorities. The working paper intends to gather insight on how prescriptive the government should be on how funds can be used, and any other factors that should be considered in order to maximise their impact.

The protection and security of the energy sector is a priority of this Government.

HMRC publishes the value and mass of electrical machinery, equipment and parts imported, by country, on its data portal at www.uktradeinfo.com/trade-data/ots-custom-table/.

Foreign investment in critical national infrastructure undergoes the highest levels of scrutiny, and the government has powers to protect energy infrastructure and critical services through a broad range of mitigations, including legislative and regulatory powers. DESNZ works closely with industry and other government departments to maintain a detailed picture of ownership and foreign involvement in energy infrastructure

The unexpected inflation shock of 2022-23 increased equity value for network companies due to fixed-rate debt financing. Following a public consultation, Ofgem took action to adjust how it regulates network company investment, deliverables and returns, so this cannot happen again going forward.

Ofgem considered reclaiming previous excess profits but decided against this to avoid raising the cost of capital and costs for consumers. Ofgem has made clear that it expects network companies to use any inflation benefit to accelerate network upgrades and find additional ways to support consumers struggling with bills.

We will deliver an updated plan that sets out the policy package out to the end of Carbon Budget 6 in 2037 for all sectors of the economy by October 2025. This will outline the policies and proposals needed to deliver Carbon Budgets 4-6 and our Nationally Determined Contributions (NDC) on a pathway to net zero, including for onshore wind, offshore wind and solar power generation, and describing Great British Energy’s potential role in supporting these sectors.

The Government is committed to ensuring that any future linkage of the UK and EU Emissions Trading Schemes remains consistent with the UK’s climate obligations and will not prevent us from pursuing higher ambition.

The “Common Understanding” text agreed between the UK and the EU at the 19^th May Summit, states that: "The United Kingdom cap and the United Kingdom reduction pathway will be guided by the United Kingdom’s Climate Change Act obligations and Nationally Determined Contributions,” In addition, a future linking agreement: “should not constrain the European Union and the United Kingdom from pursuing higher environmental ambition, consistent with their international obligations."

The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently.

The creation of Great British Energy will help us to harness clean energy and have less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030. This, combined with our Warm Homes Plan to upgrade millions of homes to make them warmer and cheaper to run is how we will drive down energy bills and make cold homes a thing of the past.

We recognise that we need to support households struggling with bills whilst we transition to clean power by 2030. On 19 June we announced that we are expanding the Warm Home Discount to around an additional 2.7 million households. This means that from next winter, around 6 million low-income households will receive the £150 support to help with their energy bill costs.

The Department agrees that extensive public communications on RTS must be sustained. I continue to meet with Ofgem on a fortnightly basis where the progress of the phase out is discussed, including assessment of communications to consumers.

Suppliers should have already contacted all RTS customers. In advance of any phase out activity in their area, they will contact affected households and businesses, through multiple methods, including door-knocking where necessary, to inform them well ahead of time to arrange a replacement. We expect suppliers to take sufficient action to have confidence that consumers are aware of the consequences of not replacing their RTS meter.

Trees and forests are essential to our climate and nature goals. Tree planting rates in England are at their highest in 20 years and in March we launched the Western Forest, the first new national forest in 30 years.

Working together with forest countries, the UK is also playing a leading role in driving international efforts to halt and reverse deforestation and forest degradation by 2030 for people, nature and climate.

GBE’s first investment, together with government, included £180 million for around 200 schools and 200 hospitals in England to install solar power and complementary technology, cutting energy costs.

Eleven school installations have already happened, enabling estimated annual bill savings of £175,000 total.

Solar power is at the heart of our clean power mission. It is clean, cheap, and reliable.

All projects are subject to a rigorous planning process, in which the views and interests of local communities are considered.

Moyle is a point-to-point interconnector that has been in operation since 2002. It is a commercially developed interconnector and operates without government financial support.

On future interconnection between Great Britain and Northern Ireland, Ofgem gave in-principle approval in November 2024 for the proposed LirIC electricity interconnector. This project is being taken forward under the Ofgem cap and floor regulatory regime.

The Government has proposed a number of reforms to the next allocation round of the Contracts for Difference scheme, to ensure the auction can deliver significant renewable electricity capacity at a fair price to consumers.

Great British Energy and Great British Energy – Nuclear will together invest more than £8.3 billion over the parliament in homegrown clean power. This includes a total £180 million investment from the Government and GBE to install rooftop solar panels on schools and hospitals, and £1 billion investment for clean energy supply chains.

Through the government’s Warm Homes Plan, schemes such as the Boiler Upgrade Scheme will also continue to provide upfront grants for property owners to make the transition to low carbon heating.

The National Energy System Operator (NESO) is responsible for operating Great Britain’s electricity system, which includes managing constraints. NESO publishes total balancing costs.

Constraints are a natural part of operating an efficient electricity system and electricity systems around the world use the constraint payment model. Government is working to reduce constraints and improve energy security and resilience by accelerating the building of new electricity network infrastructure to increase capacity on the system.

As set out in the Clean Power 2030 Action Plan, a power system run on low carbon generation with renewables providing the vast majority of generation, supported by nuclear, can form the basis of a clean, affordable and secure energy system. This assessment was supported by independent advice from the National Energy System Operator (NESO), whose clean power scenarios highlighted the importance of different technologies working in combination. The Department continues to model a range of different energy mixes and scenarios to support policy decisions.

Alongside the Scottish and Welsh Governments, we have also jointly commissioned NESO to develop a Strategic Spatial Energy Plan (SSEP). The SSEP will assess infrastructure potential on a zonal basis as well as the quantities and types of energy infrastructure required to meet our future energy demand with the clean, affordable and secure supply that we need. The first SSEP will be published in 2026.

The implications of land use change are already considered as part of the examination and determination of all applications for new energy infrastructure. In future, optimal locations for energy infrastructure will be identified by the Strategic Spatial Energy Plan (SSEP). We are ensuring that, in its development, the SSEP considers wider demands on land and sea, including (but not limited to) food production, transport, water supply, nature recovery and fisheries. The SSEP’s recommendations will not take precedence over other land uses but will exist alongside other sectoral spatial plans and frameworks.