Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
What steps his Department is taking to increase funding for research and development.
Answered by Kwasi Kwarteng
We are making the UK a Science Superpower and the Spending Review confirmed we will be funding the fastest increase in R&D spending ever. We are increasing core science funding, doubling Innovate UK’s budget, giving £800m for ARIA and putting £1.7bn into Net Zero R&D.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he plans to take in response to Ofgem’s July 2020 consultation, Supporting Retail Innovation, to provide derogations from standard licence conditions and grant supply licences for specific geographic areas or premises types; and whether Ofgem plans to progress its consideration of a local electricity supply licence.
Answered by Anne-Marie Trevelyan
The right to local energy supply already exists under the Electricity Act 1989. As the independent regulator, Ofgem has powers to award supply licenses that are restricted to specified geographical areas or premise types. In some circumstances, electricity suppliers can also apply to Ofgem for a derogation from a particular provision of their supply licence. If granted, those provisions of the supply licence will not apply.
In July 2020 Ofgem consulted on proposed changes to their approach to granting supply licences for specific geographical areas or premise types and to supply licence conditions relating to derogations, to support innovation in the retail energy market. The consultation closed on 12 October 2020, and we await Ofgem’s announcement on any next steps.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to Ofgem’s July 2018 Call for Evidence on Future Supply Market Arrangements, what assessment he has made of the potential merits of reforming the supplier hub model.
Answered by Anne-Marie Trevelyan
The December 2020 Energy White Paper committed the Government to review the overall retail market regulatory framework, including for energy supply, to make sure that it is fit for purpose in the future, and accommodates emerging and innovative business models that can best meet consumer needs and contribute to our net-zero ambitions. The Government will engage with industry and consumer groups this year to assess what market framework changes may be required, in advance of a formal consultation.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether, as part of the process of issuing a Strategy and Policy Statement to Ofgem as set out in the Energy White Paper, his Department plans to include guidance to Ofgem on steps to support community energy and to establish a right to local supply.
Answered by Anne-Marie Trevelyan
As set out in the Energy White Paper, the Government will consult on an energy sector Strategy and Policy Statement (SPS) for Ofgem during the course of 2021. The consultation will be a chance to engage with stakeholders from across the energy sector.
The SPS will reflect the strategic priorities and policy outcomes of the Government’s energy policy and the roles of Government, Ofgem and other parties which are collectively responsible for delivering these outcomes.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the follow-up to the recent call for evidence on the electricity exemptions regime, whether he has made an assessment of the potential merits of modifying the exemptions regime to enable community or local supply.
Answered by Anne-Marie Trevelyan
The current electricity licence exemptions regime already provides a framework for small scale electricity supply without the need for a licence. For example, there is an exemption for those who do not at any time supply more electrical power than 5 megawatts of which not more than 2.5 megawatts is supplied to domestic consumers.
The recent call for evidence is part of a wider review of the exemptions regime. We are currently considering responses to the call for evidence and will issue a response in due course.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether the Government plans to issue a call for evidence or consult on community energy and local supply in advance of the publication of the Net Zero Strategy to inform its proposals.
Answered by Anne-Marie Trevelyan
The Government has ongoing discussions with Community Energy England and other community and local energy groups, and the views and evidence provided are being taken into account as we consider future plans for community energy in the Net Zero Strategy.