Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential merits of introducing a single rate for electricity standing charges levied on households across the UK.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
The standing charge includes some electricity distribution costs, which vary regionally to reflect the different costs of maintaining and upgrading the distribution network in different regions. Ofgem, as the independent energy regulator overseeing network charges, has previously reviewed regional differences in network charges. Its report found that there are advantages in charges that broadly reflect the costs that different users place on the system. In particular, this cost-reflective approach to network charging supports an efficient system where overall network costs are minimised for consumers across Great Britain.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what estimate his Department has made of the level of residential energy customer debt; and if he will make a comparative assessment of the implications for his policies of changes in the level of such debt in the last five years.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
Ofgem publishes statistics on energy debt and arrears which can be found at: https://www.ofgem.gov.uk/publications/debt-and-arrears-indicators
Ofgem's published figures show that domestic energy debt and arrears sat at around £2.3bn at the end of Q4 2022.
The amount owed by domestic customers to suppliers has grown since 2021, although significant Government support with energy bills helped to bring debt levels down in Q4 2022, the latest quarter for which data are available.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to ensure that Gypsy and Traveller households can access (a) Energy Bills Support Scheme Alternative Funding and (b) the Alternative Fuels Payment.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
In order to protect public funds against potentially fraudulent activity, the Government require applicants to show proof of address, such as a tenancy agreement or a utility bill. The Government understands that some Gypsy and Traveller households may not be able provide this evidence, which means they won’t currently be able to receive the EBSS AF or the AFP AF. However, the Government is keen to support these households and officials are working to establish whether there is a robust method for them to provide proof of eligibility, whilst protecting public funds, so they can receive support.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of whether Ofgem’s proposed Inflexible Offers Licence Condition will prevent energy companies from cutting off electricity capacity in one plant and offering electricity from another plant at a higher cost; and what estimate he has made of how much revenue energy companies have potentially made via balancing payments in each of the last five years.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
There are many factors that have driven the rise in balancing costs over recent years, including an ongoing and growing need to take actions to maintain system security and high energy prices throughout the wholesale market which have increased the costs of these balancing actions.
It is critical in all times that consumers pay a fair price for their energy. Ofgem have consulted on new rules to protect consumers from the high balancing costs witnessed in recent years and are working to introduce these new rules later this year. It would not be appropriate for me to comment on the effectiveness of the proposals at this stage.
Balancing costs over the last five years were:
- £1.2bn in 2018/2019
- £1.3bn in 2019/2020
- £1.9bn in 2020/2021
- £3.1bn in 2021/2022
- £3.9bn in 2022/23 (note: incomplete as March 2023 data is not yet available)
Source: National Grid ESO Monthly Balancing Services Summary data.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, how many and what proportion of projects announced under the Social Housing Decarbonisation Fund involve the installation of ground source heat pumps.
Answered by Graham Stuart
Under the Social Housing Decarbonisation Fund (SHDF) main fund, Wave 1 has awarded around £179m of grant funding for delivery from 2022 into 2023. At the point of award, 7% of projects were expected to install ground source heat pumps (GSHPs), including shared ground loops (SGLs). Published SHDF Wave 1 Official Statistics will show which measures have been delivered.
Around £778m of grant funding was allocated to 107 projects under SHDF Wave 2.1 on 22 March 2023. At the point of award, 8% of successful projects intended to install GSHPs or SGLs.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department plans to take to install 600,000 heat pump installations by 2028.
Answered by Graham Stuart
The Heat and Buildings Strategy sets out a range of policies supporting the development of the heat pump market towards 600,000 installations per year by 2028. These policies include the Future Homes Standard, which will ensure new homes are built zero carbon-ready, a market-based mechanism for low-carbon heat and proposals to phase out fossil-fuel heating systems in off-gas-grid buildings.
The Government is also investing £6.6 billion in this parliament, with a further £6 billion committed to 2028, in schemes that support the installation of heat pumps, including the Boiler Upgrade Scheme and Home Upgrade Grant.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, when his Department plans to make an annoucement on the future use of domestic hydrogen.
Answered by Graham Stuart
The Government is working closely with industry and regulators to support a range of research, development and testing projects. This includes pioneering hydrogen heating consumer trials, designed to determine the feasibility, costs and convenience of using hydrogen as an alternative to natural gas for heating.
The knowledge and experience gained in delivering trials in communities, together with the results of our wider R&D and testing programme, will enable the Government to take strategic decisions in 2026 on the role of hydrogen in decarbonising heat.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to encourage private sector funding for renewables.
Answered by Graham Stuart
The Contracts for Difference scheme is the Government’s main mechanism for supporting investment in new low-carbon electricity generation projects in Great Britain. This month we will be launching the Allocation Round 5, for which Government has set an initial budget of £205 million. Allocation rounds will now run annually to accelerate deployment and investment in renewable generation.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to reduce the impact of inflation on the delivery of the Energy Company Obligation.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
The Government is continually monitoring delivery and developments in the ECO market, and if the Government determine that further action is required then, it will explore all options available.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether people who are applying for Alternative Fund fuel bill support can submit receipts for fuel purchased after the date on which the portal was opened.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
Yes, receipts used as evidence of alternative fuel use as part of an application to the Alternative Fuel Payment Alternative Fund must show a date of purchase between September 2022 and the end of the application window on 31 May 2023.