Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions his Department has had with (a) Ofgem and (b) distribution network operators on (i) taking steps to tackle technical energy losses in the energy system and (ii) investing in efficient cabling to prepare the energy system for an increase in demand.

The Government recognises the importance of managing energy losses to reduce emissions and protect consumers from unnecessary costs. We have regular discussions with Ofgem, which has the relevant regulatory powers in this area.

Under the regulatory regime, distribution network operators have licence obligations to ensure that losses are as low as reasonably practicable and are incentivised to take action to reduce losses. As a result, for example, it is now standard practice for distribution network operators to ‘oversize’ replacement and new lower voltage cables, which reduces losses and also provides future proofing for demand increases.