Asked by: Baroness Worthington (Crossbench - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what alternative heating solutions will be provided to consumers who do not want to participate (1) in the hydrogen heating neighbourhood trial, and (2) in the hydrogen heating village trial.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
In the neighbourhood trial, hydrogen will be transported through pipes laid parallel with the existing gas network, so consumers will be able to continue using natural gas if they do not wish to use hydrogen.
The gas networks have consulted local residents in potential village trial locations to develop their consumer offer. This includes alternatives for consumers who do not wish to or cannot connect to hydrogen, such as electric cookers and heating systems.
Asked by: Baroness Worthington (Crossbench - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government whether they have approved consumer strategies and consumer communications developed by gas distribution network operators (1) as part of the neighbourhood trial, and (2) as part of the village trial.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The gas networks have overall responsibility for leading the delivery of the neighbourhood trial and the village trial. The Government engages with the gas networks on their consumer strategies but does not routinely approve consumer communications.
Asked by: Baroness Worthington (Crossbench - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government when they expect the neighbourhood trial, referred to in the impact assessment on the Hydrogen Heating Village Grid Conversion, published on 6 July 2022, to (1) commence, (2) conclude, and (3) report; and what measures they will use to evaluate its success.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The neighbourhood trial is SGN’s H100 Fife project in Levenmouth. SGN plans to deliver hydrogen to consumers in mid-2024 and conclude by 2027. SGN provides evidence and regular progress updates to the Department for Energy Security and Net Zero, Ofgem and the Health and Safety Executive. They also produce an annual report in accordance with conditions set by Ofgem, who part funds the project
H100’s evidence is already shaping plans for the village trial, including on costs and regulatory challenges. Alongside evidence from the village trial, H100 will inform the Government’s strategic decisions in 2026 on the role of hydrogen in decarbonising heat.
Asked by: Baroness Worthington (Crossbench - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government why they are taking powers to impose a village trial of hydrogen heating before the completion of the neighbourhood trial and the publication of the analysis of the findings from that trial.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The neighbourhood trial will transport hydrogen through pipes laid parallel with the existing natural gas network. It is providing valuable evidence on costs, regulatory changes, risk management and consumer engagement. This work is informing the design and delivery of the village trial. The village trial is providing evidence on a greater number and diversity of consumers and building types, and on the process of converting the gas network. Evidence from both trials will inform Government’s 2026 strategic decisions on the role of hydrogen in heat decarbonisation.
Asked by: Baroness Worthington (Crossbench - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what estimate they have made of the proportion of consumers who (1) will participate in the Hydrogen Heating Village Trial, (2) will decline to participate in the hydrogen heating village trial and receive an alternative heating solution, (3) will be disconnected from natural gas without their consent, and (4) will be agreed by their Gas Distribution Network Operators (GDNs) to be unable to participate in the trial.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government has asked the gas networks to engage with local consumers to develop an attractive offer that encourages as many consumers in the trial area as possible to participate. This includes alternative heating solutions and appliances for those who are unable or do not wish to take part. In their trial proposals due in March, the gas networks must include the outcomes of their local engagement and evidence of the likely uptake of both hydrogen and the alternative offer. We will not go ahead with a trial in an area where there is not strong local support.
Asked by: Baroness Worthington (Crossbench - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government, further to the Energy Bill [HL] Impact Assessment on a hydrogen heating village grid conversion trial which states that “we expect Gas Distribution Network Operators to reach an agreement with all consumers in the chosen trial location, including those who do not want hydrogen or cannot participate in the trial”, on what grounds consumers would be considered to be unable to participate in the trial.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
All consumers will have the right to refuse trialling hydrogen. Alternative heating solutions and appliances will be offered for those who are unable or do not wish to take part.
It is possible that some consumers such as commercial or industrial users with specialised requirements may not be able to participate in the trial if suitable equipment is not available at the time.
Asked by: Baroness Worthington (Crossbench - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what steps they are taking to ensure that participants in the hydrogen heating neighbourhood trial and village trial are not disadvantaged by either their participation or their choice of an alternative heating solution; how they will ensure throughout the trial that the financial position of consumers in the trial is no worse than it would have been in had they remained on natural gas; and how much the programme will cost (1) public funds, and (2) billpayers.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government is committed to ensuring that the rights of consumers are protected before, during and after the hydrogen heating trials. Nobody in the trial areas will pay more for their heating than they would if they were still connected to natural gas, including those that choose an electric alternative. They will also not be expected to pay for the installation or maintenance of hydrogen-capable appliances, or an alternative heating solution. The Government is working with the regulator Ofgem and the gas networks to deliver these consumer protections through consumer contracts and funding agreements. Consumers will be able to opt-out of the neighbourhood trial at any point and switch back to using natural gas free of charge. Consumer protection for the village trial will be further enhanced through legislation, including measures in the Energy Bill, and subsequent regulations.
The neighbourhood trial is funded by SGN, with contributions from other gas networks, Ofgem and the Scottish Government. The village trial will be funded by the Department for Energy Security and Net Zero, Ofgem and the gas networks. The village trial location and level of public funding will be decided later this year, following the submission of funding applications in March.
Asked by: Baroness Worthington (Crossbench - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government, further to the Impact Assessment on the Hydrogen Heating Village Grid Conversion Trial which stated that “the trial will largely be funded by Ofgem and BEIS, with some private sector investment", how much of the cost will be paid (1) from public funds, and (2) by billpayers.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government is committed to ensuring that the rights of consumers are protected before, during and after the hydrogen heating trials. Nobody in the trial areas will pay more for their heating than they would if they were still connected to natural gas, including those that choose an electric alternative. They will also not be expected to pay for the installation or maintenance of hydrogen-capable appliances, or an alternative heating solution. The Government is working with the regulator Ofgem and the gas networks to deliver these consumer protections through consumer contracts and funding agreements. Consumers will be able to opt-out of the neighbourhood trial at any point and switch back to using natural gas free of charge. Consumer protection for the village trial will be further enhanced through legislation, including measures in the Energy Bill, and subsequent regulations.
The neighbourhood trial is funded by SGN, with contributions from other gas networks, Ofgem and the Scottish Government. The village trial will be funded by the Department for Energy Security and Net Zero, Ofgem and the gas networks. The village trial location and level of public funding will be decided later this year, following the submission of funding applications in March.
Asked by: Baroness Worthington (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Autumn Statement announcement on vehicle excise duty (VED) changes, whether they intend to levy annual VED of £165 from 2025 on electric vehicles; whether pre-2017 petrol and diesel vehicles rated at less than 110 gCO2/km will continue to pay £20; and whether those rated 110–120gCO2/km will continue to pay £30; if so, what are their reasons for charging lower road tax on more polluting vehicles; and if not, what steps they will take to ensure that electric vehicles are not charged higher VED than more polluting vehicles.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
In his Autumn Statement the Chancellor announced that electric cars, vans and motorcycles will begin to pay Vehicle Excise Duty (VED) in the same way as petrol and diesel vehicles from April 2025. With the EV transition accelerating, it’s right that all drivers start to make a fair tax contribution through changes to VED.
The details requested are included in the Autumn Statement document and in the tax information and impact notes.
Asked by: Baroness Worthington (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the value of commodity derivatives or economically equivalent contracts which were traded (1) over the counter, and (2) in trading venues in the UK, by FCA-regulated firms in respect of (a) oil, (b) gas, (c) coal, (d) electricity, and (e) soft commodities, in the past 12 months.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
HM Treasury does not hold this data. However, such data may be provided publicly by certain financial markets data companies.