Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the impact on household energy bills of the £28 billion electricity and gas infrastructure investment approved by Ofgem over the next five years.
Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)
Ofgem, the regulator, sets funding and investment allowances for gas and electricity transmission and gas distribution networks through its price control process. As confirmed in their Final Determinations for RIIO-3, covering 2026-2031, there will be an estimated net increase in bills by 2031 of around £30 a year, or less than £3 per month, though these are costs expected to decline further over time. This investment is essential to maintain a safe, reliable network, that provides energy security, whilst we move to a cleaner, and ultimately more affordable, energy system.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of reports that one million households are now falling behind with their energy bills.
Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)
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. This is why we delivered the Warm Home Discount to around 3 million eligible low-income households last winter. 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 Government's review of the 2021 fuel poverty strategy and the latest fuel poverty statistics confirm that a new plan is needed to accelerate progress to alleviate fuel poverty. The consultation closed on 4 April and we are considering the responses received. We are committed to publishing a new fuel poverty strategy this year. Our new fuel poverty strategy will be developed alongside our Warm Homes Plan and clean power mission, and our work to make the energy market fairer.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of how the artificial intelligence industry affects the stability of energy supplies.
Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)
Embracing the opportunities that AI can provide to drive growth and productivity in the economy is a government objective. Supporting the development of AI data centres through policies such as AI Growth Zones is a key part of that. Building the low carbon economy of the future will lead to significant increases in electricity demand across many sectors. These projected increases were a key part of the analysis that underpinned the department’s Clean Power Action Plan. This set out how, by unlocking new low carbon electricity generation, improving access to the electricity grid and efficient use and operation of the energy system - which can be supported by new technologies such as AI - we will achieve Clean Power by 2030 and maintain secure, resilient energy supplies.
The Government supports AI development in the UK and the economic growth it could bring. The Department is working closely with the Department for Science, Innovation and Technology in setting up the AI Energy Council that will have senior representatives from both the energy industry and the AI industry to look at where best to locate AI data centres to ensure the growth of AI and data centres in the UK is done in a way that supports our clean power mission and longer-term decarbonisation goals. For example, looking to seize opportunities that support grid balancing, reduce network costs, and utilise excess renewable energy.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the UK's energy capacity to ensure that energy prices remain stable despite the increasing use of artificial intelligence.
Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)
The Government is committed to including data centres as part of its strategic energy plans and has established the AI Energy Council. The Council will continue to identify any barriers to the growth of AI and data centres in the UK, and ensure the growth supports our clean power mission, which includes a commitment to protect consumers.
In general, the way to keep energy prices stable with increasing demand for electricity is to make the electricity wholesale price reflect the much cheaper wholesale price of clean energy. Over this Parliament the Government will be working relentlessly to achieve that.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the impact of energy prices on the speed of adoption of emission curbing technologies; and whether they plan to introduce measures to reduce energy costs for the adoption of those technologies.
Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)
There has been rapid growth in clean technology adoption such as EVs and heat pumps over the last year.
Over this Parliament the government will be working relentlessly to translate the much cheaper wholesale costs of clean power into lower bills for consumers, including addressing the price disparity between electricity and gas to attract more consumers to adopt clean technologies.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the current price of energy in the United Kingdom; and whether they plan to increase reliance on non-renewable energy sources as part of their future energy strategy.
Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)
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.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the impact of international conflicts on the oil market, and whether they intend to implement measures to reduce the effect of such external shocks on the UK economy.
Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)
Oil and gas markets are well supplied and functioning normally. Though they have responded to events in the Middle East, prices remain within the bounds we have seen over the last year.
The Government's Clean Energy Superpower Mission, supported by the largest investment in home-grown clean energy in British history, will enhance energy security by boosting our energy independence, protecting billpayers, and reducing exposure to global supply shocks.
Asked by: Lord Taylor of Warwick (Non-affiliated - 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 the increasing use of green energy remains a central focus of UK energy policy.
Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)
The commitment to Clean Power by 2030 is a central focus of government policy, with an associated Action Plan outlining how the Government will achieve its clean power mission by rapid deployment of low carbon generation, along with transmission infrastructure. The Spending Review reconfirmed this mission. Great British Energy and Great British Energy – Nuclear will together invest more than £8.3 billion over the parliament in homegrown clean power. Landmark funding of over £500m for hydrogen infrastructure has also been announced. This will help deliver green energy while creating thousands of jobs in industrial regions and the supply chain.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what steps they are taking to invest in increased energy storage solutions to reduce the cost of turning off wind farms and sourcing alternative energy sources.
Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)
The Clean Power Action Plan was launched in December 2024 and sets out a pathway towards deploying more low carbon flexible technologies. The Clean Power Action Plan suggests we could need 4-6GW of Long Duration Electricity Storage (LDES) by 2030, up from 2.8GW today, and also outlines plans for the deployment of grid scale battery storage.
The Government and Ofgem are supporting the development of the next generation of LDES facilities with a cap and floor investment support scheme. We are also streamlining planning processes for storage projects to help reduce system constraint costs across the electricity network.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the impact of high energy costs on energy-intensive sectors, and what steps they are taking to reduce energy costs for those industries.
Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)
This Government recognises high energy prices are a key challenge for UK businesses, including those in energy-intensive sectors. We are working closely with businesses and industry to consider actions needed to support key sectors and address the challenges they currently face.
Our Clean Power 2030 target is the key to long-term sustainable price reductions. Our mission is for clean power by 2030 because clean, homegrown energy is the best way to protect billpayers and boost Britain's energy independence. We are also already bringing energy costs for UK industries closer in line with other major economies through the British Industry Supercharger. This fully exempts eligible firms from certain costs linked to renewable energy policies, particularly those exposed to the high cost of electricity. Government will always keep support under review based on the needs of industry.