Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 5 February 2026 to Question 110095, what assessment he has made of the potential impact of the absence of route-level ferry fare modelling risks on consumer price impacts for ferry-dependent communities.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government has not undertaken route level ferry fare modelling for the UK ETS domestic maritime expansion. This is because, as we set out in the Impact Assessment, operators’ commercial decisions, vessel utilisation and fare structures vary widely. The qualitative assessment indicates that any passthrough to consumers is likely to be modest.
The Government will review the maritime element of the UK ETS in 2028 with further consideration of regional or distributional impacts.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 5 February 2026 to Question 110095, whether the Department plans to publish route-specific or island impact assessments before domestic maritime is brought into scope of the UK ETS in 2026.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Impact Assessment set out that it is not possible to robustly break down compliance costs to the level of individual routes or service types, as ticket prices, fare structures and commercial operating decisions vary widely. The Assessment therefore considers impacts at the sector and scheme level.
The Authority consulted extensively with all operators, including those serving island mainland and shortsea routes, to ensure all perspectives informed policy development.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his Department provides (a) funding and (b) any other support for increasing (i) grid capacity and (ii) enabling electrification at the Port of Southampton.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Maritime Decarbonisation Strategy, published in March 2025, sets out domestic goals and commitments to decarbonise maritime transport, and a call for evidence on Net Zero Ports was launched to assess future energy demand at ports such as Southampton and Portsmouth International.
While the Government does not directly fund increases in electricity network capacity, we support Ofgem in their work to incentivise electricity network companies to invest strategically, ensuring plans reflect emerging demands from electrifying sectors. Through the UK Shipping Office for Reducing Emissions, Portsmouth International Port received nearly £20m of R&D funding to support a shore power trial.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, with reference to page 19 of the Final stage impact assessment entitled UK Emissions Trading Scheme (ETS) Scope Expansion - Domestic maritime, published on 25 November 2025, for what reason no quantified analysis was undertaken on the regional and equalities impacts.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Impact Assessment did not include quantified regional or equalities analysis because the available evidence did not support robust estimations of impacts at that level of granularity.
The Assessment finds that compliance costs are modest relative to operators’ overall costs and, as a result, a qualitative assessment found that regional or distributional impacts are expected to be limited.
The Government will review the maritime element of the United Kingdom Emissions Trading Scheme in 2028 with further consideration of regional or distributional impacts.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his Department provides (a) funding and (b) any other support for increasing (i) grid capacity and (ii) enabling electrification at Portsmouth International Port.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Maritime Decarbonisation Strategy, published in March 2025, sets out domestic goals and commitments to decarbonise maritime transport, and a call for evidence on Net Zero Ports was launched to assess future energy demand at ports such as Southampton and Portsmouth International.
While the Government does not directly fund increases in electricity network capacity, we support Ofgem in their work to incentivise electricity network companies to invest strategically, ensuring plans reflect emerging demands from electrifying sectors. Through the UK Shipping Office for Reducing Emissions, Portsmouth International Port received nearly £20m of R&D funding to support a shore power trial.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, a) what estimate his Department has made of the average additional cost per passenger ticket on domestic ferry services arising from the inclusion of domestic maritime within the UK Emissions Trading Scheme from 2026; b) what estimate has been made of the average additional cost per vehicle crossing; and c) whether these estimates vary by route type, including island-mainland, short-sea, and longer-distance domestic routes.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government has not produced estimates of the additional cost per passenger ticket arising from the inclusion of domestic maritime within the UK Emissions Trading Scheme.
The Impact Assessment considers costs at sector-level rather than by route or fare type, as ticket prices and commercial decisions vary widely and cannot be robustly modelled.
The Assessment finds compliance costs are modest relative to operators’ overall costs and does not identify significant consumer price impacts, but notes early evidence from the EU Emissions Trading System suggesting short‑sea shipping routes and ferry fares increased by 3-11% under comparable carbon pricing.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 9 January 2026 to Question 100965, if he will provide a link to that impact assessment.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The impact assessment for the response to the consultation on expansion to domestic maritime emissions can be found here:
We will publish a full impact assessment on the expansion to international voyages alongside the Authority Response to the consultation.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he will approve arrangements under which electricity generated by Drax from imported wood pellets is used to supply data centres; and what assessment he has made of the carbon and environmental impact of such use.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The government is committed to ensuring that the UK’s AI infrastructure is developed in a way that is both sustainable and aligned with our net zero ambitions. The Low-Carbon Dispatchable Contract for Difference, covering Drax's generation from 2027-31, requires Drax to request permission should they wish to supply power to a data centre from their biomass units during this period. Should such a request arise, DESNZ, working with the Low Carbon Contracts Company, would assess this on its merits, taking account of security of supply, value for money, and sustainability matters. Without such permission any data centre on the site could not draw power directly from the biomass units during this period. Regardless of the supply arrangements, Drax is contractually obliged to meet enhanced sustainability criteria for their power generation, which include requiring 100% of the biomass used to be obtained from sustainable sources.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether Drax’s current Contract for Difference contains any binding obligations requiring the development and deployment of carbon capture and storage; and what assessment his Department has made of the continued burning of imported wood pellets for electricity generation under that contract.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The current Contract for Difference (CfD) and recently announced Low-Carbon Dispatchable CfD agreements will be in place until 2031 and do not include contractual requirements for the development of carbon capture and storage (CCS) at the site. The focus of the new CfD is ensuring security of supply for the contract duration, and the development of CCS in the future remains under consideration.
The Government published an impact assessment in early 2024 as part of its consultation on support options for large-scale biomass generators. This assessment was consistent with the views of the Intergovernmental Panel on Climate Change (IPCC) which recognise that bioenergy can play a significant role in decarbonising economies, provided policies are in place to mitigate the use of unsustainable biomass.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, with reference to the press release entitled Fuel margins remain “persistently high” and this is not explained by operating costs, CMA finds, published on 22 December 2025, what steps he is taking to help reduce average fuel margins for non-supermarket fuel retailers.
Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government notes the Competition and Markets Authority’s (CMA) annual road fuel monitoring report.
Addressing the CMA’s findings, the Government is implementing Fuel Finder, a statutory open data scheme for road fuel prices to improve price transparency and incentivise competition in the market from both supermarket and non-supermarket retailers. The CMA also has statutory powers under the Digital Markets, Competition and Consumers Act 2024 to monitor the market and advise on any further action.