Jonathan Edwards

Network regulation, including the ability to grant Distribution Network Operator licenses, is a matter for Ofgem as the independent energy regulator. As such, the government does not comment on Ofgem’s decision making on licence applications.

The Government consultation on the draft energy National Policy Statements closed on 23 June and we are reviewing the responses. This included that overhead lines should be the strong starting presumption for electricity networks developments but that in nationally designated landscapes the strong starting presumption will be that the applicant should underground the relevant section of the line. Decisions on which technology would be used for construction would be a matter for the developer. Government officials engage and meet with all devolved administrations, including Welsh Government, as required for policy development and evaluation.

The Government consultation on the draft energy National Policy Statements closed on 23 June and we are reviewing the responses. This included that overhead lines should be the strong starting presumption for electricity networks developments but that in nationally designated landscapes the strong starting presumption will be that the applicant should underground the relevant section of the line. Decisions on which technology would be used for construction would be a matter for the developer. Government officials engage and meet with all devolved administrations, including Welsh Government, as required for policy development and evaluation.

A total of 384 individuals are in receipt of a concessionary fuel entitlement in the Carmarthen East and Dinefwr constituency. Of these, 325 receive Cash In-Lieu and 59 receive solid fuel.

The AFP Alternative Fund was open to applications from 6 March to 31 May inclusive and the Government has no plans to re-open the scheme.

The Government is continually reviewing the financial support it provides for the differing energy needs within its communities. This includes the Help for Households campaign that has numerous Cost of Living support schemes in 2023/2024. You can visit the Help for Households webpage on GOV.UK which outlines details of the support offered: https://helpforhouseholds.campaign.gov.uk.

The information requested is not held centrally.

The Alternative Fuel Payment (AFP) scheme delivered payments of £200 to households who use alternative fuels such as heating oil, liquefied petroleum gas, coal or biomass, helping around 2 million off-gas-grid households to meet their energy costs. The scheme particularly supported households in rural areas that are not connected to the gas grid.

Over 85% of eligible households received the payment automatically via their electricity supplier during February, and a small proportion of households needed to apply for the AFP, for example when households in their local area predominantly use electricity or mains gas for their heating.

There is ongoing work to assess the potential contribution of geothermal heat in Wales. The Coal Authority is working closely with the Welsh Government to produce a full Mine Water Heat resource map for Wales, identifying key opportunity locations and an overall resource estimate. The map is scheduled for completion later this year.

Heat is a devolved policy area but the Department has funded studies for local authorities to explore minewater heat opportunities across South Wales.

Ofgem has granted licences to 16 Independent Distribution Network Operators.

The Alternative Fuel Payment Portal due to open for applications from Monday 6 March.

Since the launch of the Boiler Upgrade Scheme in May 2022 and up to the end of January 2023, a total of 132 biomass boiler vouchers have been issued to properties in England and Wales.

Ofgem has made us aware that there are currently 4 live applications affected by changes to the product eligibility list. The Government is working closely with Ofgem to ensure a fair and proportionate decision is made regarding these cases.

Ofgem always keep the Product Eligibility List (PEL) under review. Where they have reason to, Ofgem may investigate certain products to gain greater assurance that they are eligible for the Boiler Upgrade Scheme. Where this is the case, Ofgem sometimes remove products from the PEL until they have completed their investigation.

The PEL is not a guarantee that specific products meet all requirements under the scheme. Installers should always consult the regulations, the standards published by Secretary of State, and the scheme guidance to understand whether specific products are eligible for funding.

Distribution network operators build, own and operate the lower voltage distribution network infrastructure. When identifying preferred options for new infrastructure, Network Operators consider a range of factors including cost, environmental and socioeconomic impacts, deliverability and system benefit. This can include consideration of undergrounding along existing road and rail corridors, however this can significantly increase the costs of projects, which are paid for by consumers.

Payments began from 6 February and electricity suppliers have until the end of February to pay eligible customers, including non-direct debit customers. When and how customers receive their payment will depend on their electricity supplier and how they pay their bill.

Multi-function premises that are used for both residential and business purposes, and have the same address, will not be eligible for the Energy Bills Support Scheme Alternative Funding (EBSS AF). Instead, the user of the premises is likely to be eligible to receive support through the Energy Bills Relief Scheme (EBRS) with more information available on the GOV.UK webpages. If the residential dwelling has a different postal address, is not a business premises, is used wholly or mainly for domestic purposes, and is not paying business rates, this household would likely be eligible for the EBSS AF.

The Government recognises the role community and locally owned renewable energy schemes can, and do, play in supporting the UK’s national net zero targets.  These projects help encourage innovation and investment as well as community engagement with the energy challenge.

The Government will shortly be consulting on the Cost- Plus Revenue Limit and the issue of having a minimum threshold for size of generation stations will be considered as well as whether it is appropriate for this mechanism to apply to community or local energy schemes.

The additional support, including the level at which it is set, provided to households not eligible for the Energy Price Guarantee (EPG) is intended to ensure that they do not face a higher rate of growth in their heating costs since last autumn, compared to those on gas supported by the EPG.

I refer the Hon. Member to the answer I gave to the Hon. Member for St Albans on 22 September 2022 to Question 48498.

The Government continues to work at speed to determine the most practical and tested routes to deliver this support and will provide more details in due course.

The support provided to off-grid households is intended to ensure that they do not face a higher rate of growth in their heating costs since last autumn, compared to those on gas supported by the Energy Price Guarantee. The Government will continue to closely monitor the situation to support all energy users.

Over the past ten years, the Government has provided over £2.5 billion in funding to support the Post Office network. Government is providing a further £335 million for the Post Office over the next three years.

While the Government sets the strategic direction for the Post Office, it allows the company the commercial freedom to deliver this strategy as an independent business. The management of the Post Office network, including the provision for ATMs, is an operational matter for Post Office Ltd.

Costs incurred when customers are moved to a new supplier from a failed supplier are split between the receiving supplier and a levy on industry as a whole. The levy compensates suppliers for the unrecoverable costs of taking on customers, such as purchasing additional wholesale energy, and it is funded from gas transporters and electricity distributors Use of System charges.

The standing charge element of consumer bills reflects some of the fixed costs of supplying energy, including gas and electricity system costs. In the April-Oct calculation of the price cap Ofgem have increased the distribution cost allowance, driven mainly by an increase in the industry levy caused by exceptional global wholesale energy prices.