Alan Whitehead

Boston Consulting Group is providing pro-bono strategic project support to the COP26 Unit.

DESNZ has responsibility for the measurement of fuel poverty in England. The latest estimates of fuel poverty in England are available here:

https://www.gov.uk/government/collections/fuel-poverty-statistics

Table 5 of the detailed tables shows the number of fuel poor households by rurality in 2023 and Table 6 by region. Due to sample size constraints, it is not possible to provide suitable estimates for rural households in fuel poverty by individual region.

Fuel poverty is a devolved matter and different metrics of fuel poverty are used in the Devolved Administrations.

Ofgem is responsible for regulating networks through a price control process that enables the investment needed to deliver a secure, resilient, net zero network in an efficient way, protecting consumers from excessive costs. Costs for network investment are recovered through electricity bills over a period of 45 years. The previous price control, covering the period between 2015 and 2023, enabled over £24bn of Distribution Network Operator expenditure. The cost impact on consumer bills remained broadly flat for this period.

On 28 February 2024, there were a total of 15,222 registered exemptions from the minimum energy efficiency standard regulations for both domestic and non-domestic private rented properties.

The Electricity System Operator (ESO) has a licence obligation to operate the system in the most economic and efficient way possible. The main factors that influence operating decisions are cost, system conditions, network constraints, generators’ technical capabilities, and the ESO’s own operational capabilities.

The ESO has an ambition to operate the transmission system with 100% zero carbon for short periods in 2025. It therefore has an extensive programme of work to extend its ability to operate a zero-carbon transmission system across more market and system scenarios.

The Government recognises the challenges posed by cost-of-living pressures, including the impact of energy bills, and is already providing extensive financial support to households which includes a £104 billion package, or £3,700 per household on average, over 2022-2025.

We are continuing to support households with the cost of living past April 2024. In the Autumn Statement the Government announced the biggest increase to the National Living Wage, which will benefit around 2.7 million workers and is worth £1,800 to a full-time worker. We also announced an increase to benefits of 6.7% which is worth around £470.

Ofcom are carrying out a review of the future communication needs of the utilities (electricity, gas, and water) that is due for publication in Q4 2023-2024. The Department will draw on the recommendations of that report and, if a spectrum solution is recommended, work with the Department for Science Innovation and Technology to assist industry partners in securing the relevant spectrum allocation.

Government will publish the Green Jobs Plan in the first half of 2024. This will outline the actions government and industry will take to ensure we have the skilled workforce at the right time and place, to deliver our net zero, nature, and energy security targets.

We are aware of the need to increase the number of appropriately skilled electricians for installation and maintenance of low carbon technologies. The Green Jobs Delivery Group is utilising workforce assessments to understand the scale of demand in different sectors; actions are being developed to address this demand within the Green Jobs Plan.

The Contracts for Difference (CfD) scheme is funded by the Supplier Obligation, a statutory levy on all GB-based licensed electricity suppliers. Typically, we expect these costs to be passed through from suppliers to consumers via electricity bills. The Office for Budget Responsibility publishes outturn and forecast of Environmental Levies, which includes the Contracts for Difference Scheme. In the year 2022-23, the Office for Budget Responsibility estimates that the outturn cost of the scheme was -£0.1 billion, i.e. a saving to electricity consumers.

Section 5.9 of the Overarching National Policy Statement for Energy (EN-1) sets out policy relevant to the Secretary of State’s consideration of impacts on the historic environment, including archaeological sites as part of the development consent process for nationally significant energy infrastructure projects. In considering any application for development consent, the Secretary of State considers all relevant matters including policy related to the historic environment.

Planning consents will set requirements for pre-construction archaeological surveys where appropriate, and techniques used may include trial trenching. The most appropriate technique is likely to depend on the specific circumstances in each case.

Planning guidance on assessing potential impacts of large-scale solar projects on the historic environment is set out in the recently published Energy National Policy Statements. In most cases, applicants are required to seek expert assessment. Where assessments include investigative work, such as trial trenching, this should be proportionate.

Conducting this work during the pre-application planning phase enables developers to take into account findings and, if necessary, mitigate impacts by adapting project design at an early stage. It provides a robust evidence base to support decision making, helping to avoid delays after applications have been submitted or post consent.

(a) The low carbon heating technician apprenticeship standard is newly approved as of August 2023, and so published data is not yet available;

(b) Since September 2023, 1,796 accredited courses have been started under Phase 2 of the Home Decarbonisation Skills Training Competition, upskilling insulation installers and retrofit coordinators and assessors. The funding is expected to result in around 8,000 training opportunities; and,

(c) Since July 2023, the Heat Training Grant has funded 1,443 courses relevant to heat pumps and heat networks. The grant is expected to support 10,000 training opportunities by April 2025.

The table below outlines the training started under the above-mentioned schemes, broken down by region:

These schemes are part way through delivery. The figures for training started will continue to increase across all regions.

As the electricity market regulator, Ofgem is responsible for ensuring that the wholesale electricity market is sufficiently liquid to provide efficient outcomes for consumers. Ofgem monitors liquidity in physical and financial markets and explores options to improve it. Alongside this, through the Review of Electricity Market Arrangements, the Department is considering how to ensure liquidity is maintained as the UK transitions to future market arrangements.

Members of the Energy Emergencies Executive Committee (E3C) have developed proposals for an outcomes-focused physical network resilience standard. The standard will set public and government expectations and industry targets to guide planning and funding decisions by industry and the regulator, providing a consistent approach to emergency planning and management for both national and local severe weather events. This was a commitment in the Storm Arwen Review Final Report.

The Department is aware that in recent years liquidity has been falling in the GB wholesale electricity market which has made it more challenging for suppliers and generators to manage their financial risks. Concerns over low liquidity were elevated in 2022/23 due to high and volatile wholesale energy prices, which have now stabilised somewhat.

As the electricity market regulator, Ofgem is responsible for ensuring that the wholesale electricity market is sufficiently liquid to provide efficient outcomes for consumers. The Department will also consider how to ensure liquidity is maintained in future market arrangements through its Review of Electricity Market Arrangements.

The ambition to reduce total UK energy demand by 15% from 2021 levels by 2030 remains. In order to meet that ambition, a range of proposals and policies are required. My Rt. Hon Friend the Secretary of State keeps under review the UK’s progress towards improving the energy efficiency of homes and will take further action if needed to ensure there are sufficient proposals and polices in place to meet the ambition.

The Energy Efficiency Taskforce was established to support the Government with its target to reduce total UK energy demand by 15% from 2021 levels by 2030. My Rt. Hon Friend the Secretary of State has, after careful deliberation, concluded that the draft work can be streamlined into other Government activity. No finalised product was produced.

The Department consulted regularly with the Energy Efficiency Taskforce to develop a pathway to reduce total UK energy demand by 15% from 2021 levels by 2030.

The smart metering Targets Framework sets energy suppliers annual, individual minimum installation targets over a four-year period and is driving the momentum of the rollout.

Ofgem is responsible for regulating and enforcing energy suppliers against their minimum installation targets.

The Government will consider whether further measures are needed after 2025 in addition to the existing smart metering New and Replacement Obligation to maximise the benefits of the rollout beyond the end of the four-year Framework.

The smart meter rollout continues to unlock energy system flexibility which is forecast to reduce system costs by up to £10bn a year by 2050.

The smart metering Targets Framework sets energy suppliers annual, individual minimum installation targets over a four-year period and is driving the momentum of the rollout.

Ofgem is responsible for regulating and enforcing energy suppliers against their minimum installation targets.

The Government will consider whether further measures are needed after 2025 in addition to the existing smart metering New and Replacement Obligation to maximise the benefits of the rollout beyond the end of the four-year Framework.

The smart meter rollout continues to unlock energy system flexibility which is forecast to reduce system costs by up to £10bn a year by 2050.

The smart metering Targets Framework sets energy suppliers annual, individual minimum installation targets over a four-year period and is driving the momentum of the rollout.

Ofgem is responsible for regulating and enforcing energy suppliers against their minimum installation targets.

The Government will consider whether further measures are needed after 2025 in addition to the existing smart metering New and Replacement Obligation to maximise the benefits of the rollout beyond the end of the four-year Framework.

The smart meter rollout continues to unlock energy system flexibility which is forecast to reduce system costs by up to £10bn a year by 2050.

Any policy decision on transmission blending will be determined by economic and safety assessments and wider strategic considerations. Additional considerations associated with transmission level blending include the impact of blends and/or varying blend rates on industrial end users connected at transmission-level. Government will also need to consider the blending plans of countries that we share interconnectors with.

Yes the Government is committed to the ambitions set out in the UK Hydrogen Strategy.

Government has not made such an estimate, which would depend on variables such as size of heat pump, power of electric vehicle charge point and existing supply capacity, where comprehensive data is not available. Domestic supplies can be upgraded if required, for example by installing a larger fuse, and the use of smart energy management solutions such as electric vehicle smart charging can also help reduce the maximum demand of a property to facilitate the installation, and use, of low carbon technologies.

Government is currently undertaking the next phase of policy development to assess what policy approach is best suited to enable investment in Large-scale, Long-duration Electricity Storage (LLES) projects. Government have been assessing a range of potential interventions, including cap and floor mechanisms, and their suitability to enable investment in LLES. Government anticipates further consultation with stakeholders later this year.

Yes. As per the answer to Question 188651 on 13^th June and In Powering Up Britain, the Government committed to put in place an appropriate framework by 2024 to enable investment in large scale long duration electricity storage (LLES), with the goal of deploying sufficient storage capacity to balance the overall system. We are currently undertaking the next phase of policy development to assess what policy approach is best suited to enable investment in LLES projects and anticipate further consultation with stakeholders later this year.

The Government assessed and consulted in August 2022 on options for the business model to deploy power Bioenergy Carbon Capture and Storage (‘BECCS’). A response was published in March 2023. The preferred approach for the business model was confirmed as being the ‘Dual CfD’, consisting of a ‘CfDe’ which values the electricity generated and a ‘CfDc’ which values the carbon stored and associated negative emissions. The UK ETS Authority has announced its intention to include engineered removals in the UK ETS, to incentivise investment and support deployment of these technologies. These technologies could include those within scope of the power BECCS business model. The Authority aims to carry out a further consultation in 2023.

The Government aims to make a policy decision on whether to blend hydrogen into the existing gas distribution networks in 2023, subject to the outcomes from ongoing economic and safety assessments and strategic considerations, including potential impacts on hydrogen production and the wider energy system. The initial 2023 policy decision will consider distribution-level blending only. The Government will assess the case for blending at transmission-level, which may be subject to a separate policy decision at a later date. There are additional considerations associated with transmission level blending that will be factored in as part of the assessment.

The Government aims to make a policy decision on whether to blend hydrogen into the existing gas distribution networks in 2023, subject to the outcomes from ongoing economic and safety assessments and strategic considerations, including potential impacts on hydrogen production and the wider energy system. The initial 2023 policy decision will consider distribution-level blending only. The Government will assess the case for blending at transmission-level, which may be subject to a separate policy decision at a later date. There are additional considerations associated with transmission level blending that will be factored in as part of the assessment.

The Government aims to make a policy decision on whether to blend hydrogen into the existing gas distribution networks in 2023, subject to the outcomes from ongoing economic and safety assessments and strategic considerations, including potential impacts on hydrogen production and the wider energy system. The initial 2023 policy decision will consider distribution-level blending only. The Government will assess the case for blending at transmission-level, which may be subject to a separate policy decision at a later date. There are additional considerations associated with transmission level blending that will be factored in as part of the assessment.

The Energy Efficiency Taskforce is working through its ideas and a specific publication date for their action plan will follow. Progress is published at: https://www.gov.uk/government/groups/energy-efficiency-taskforce

As outlined in the Powering Up Britain and British Energy Security Strategy we will put in place an appropriate framework by 2024 to enable investment in large scale long duration electricity storage (LLES), with the goal of deploying sufficient storage capacity to balance the overall system. We are currently undertaking the next phase of policy development to assess what policy approach is best suited to enable investment in LLES projects and anticipate further consultation with stakeholders later this year.

The Government plans to engage with key stakeholders across the sectors of hydrogen, power, industry and greenhouse gas removals. The Government will use this engagement to help develop its vision for the CCUS sector in the 2030s and there are plans to set out the vision later this year.

The Government has announced plans to expand Track-1 through the Track-1 expansion process and has commenced Track-2.

The Government recognises the importance of improving visibility for investors, and will set out a vision for the CCUS sector that will support the UK's net zero ambitions and raise investor confidence.