Department for Energy Security & Net Zero

Great British Energy is initially headquartered in DESNZ’s second headquarters in Aberdeen, Crimon Place, to ensure the organisation can get to work as quickly as possible. As a Government Property Agency (GPA) onboarded department, DESNZ is pursuing property options through the GPA. Due to the commercial sensitivity of any lease negotiations, specific details or timescales cannot be provided at this time.

In 2023, the Department co-funded a study with the Northeast Local Enterprise Partnership on the UK’s deep geothermal potential. Based on its recommendations, the British Geological Survey was commissioned to develop the UK Geothermal Platform—an open-access, web-based tool launching in summer 2025 to help developers and investors identify geothermal opportunities and conduct pre-feasibility assessments. Further research on the levelised costs of geothermal heat and power will also be published in summer 2025. The UK government continues to engage with the geothermal sector, academia, and international partners to improve understanding of geothermal energy’s role in achieving net zero.

Geothermal energy is a clean energy source and therefore falls within the group of technologies that are included within Great British Energy’s (GBE) remit, as set out in the GBE Bill.

The Secretary of State will prepare a Statement of Strategic Priorities (SSP) for GBE within six months of the date the Bill comes into force. The SSP will steer GBE on its approach to future investments.

The Government recognises that risk mitigation schemes have helped develop the geothermal industry in some parts of Europe. It is considered premature to introduce a dedicated risk mitigation scheme at this time, given the current stage of development in the UK, associated costs, and funding priorities.

This conclusion was informed by discussions on the role that these mechanisms fulfil in encouraging deep geothermal investment. Experts, including those from France and the International Energy Agency were consulted. We continue to monitor and engage with the market and experts.

The Government supports geothermal energy through multiple schemes and integrated projects can receive funding from more than one at a time. For example, United Downs in Cornwall will produce heat and was awarded a contract for difference to produce electricity. Automotive Transformation Fund has provided funding to support R&D into UK Lithium extraction and refining including in Cornwall. The Green Heat Network Fund can also support geothermal heat. Cornwall Council secured £22 Million for Langarth District Geothermal Heat Network. There are no plans to integrate schemes as there are few operational or planned commercial projects combining heat, power, and mineral production.

Language service needs and spend are assessed to ensure these services offer good value for money for taxpayers while maintaining high standards of service delivery.

DESNZ is introducing heat network regulation which aims to provide consumers with comparable protections to existing gas and electricity regulations.

This new regulatory framework was signed into law earlier this year, establishing Ofgem as the market regulator with consumer interests as its highest priority.

When Ofgem formally commence this role in January 2026, they will require suppliers to institute protections for vulnerable consumers and will have powers to collect pricing data, conduct investigations into instances of disproportionately high prices, and intervene when there is sufficient evidence. They will also establish guaranteed standards of performance to ensure that a minimum quality of service is provided.

The Boiler Upgrade Scheme (BUS) provides grants to property owners to enable them to transition away from fossil fuel to low carbon heating. The grant available under the scheme for air source heat pumps and ground source heat pumps is £7,500, and £5,000 is available for biomass boilers. Funding for the BUS has increased to £295 million for this financial year.

The Warm Homes: Local Grant (WH:LG) and Warm Homes: Social Housing Fund (WH:SHF) provides funding to support low carbon heating, including heat pumps, and the installation of energy efficiency measures.

The grants are in addition to the 0% rate of VAT on the installation of heat pumps and biomass boilers, which will last until March 2027.

Drones are useful in inspecting energy infrastructure such as offshore wind turbines and overhead electrification lines which are difficult to reach using other means. As part of DESNZ’s Net Zero Innovation Programme, we have funded UK companies looking to develop drones for these types of inspections.

The Government wants to provide all businesses with better protection from being locked into unfair and expensive energy contracts, and more redress when they have a complaint.

Last year, the Government launched a consultation on introducing regulation of Third-Party Intermediaries (TPIs), such as energy brokers. This is aimed at enhancing consumer protections, particularly for non-domestic consumers. The consultation has now closed, and a Government response will follow in due course once all feedback has been reviewed.

The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently. This, combined with our Warm Homes Plan to upgrade millions of homes to make them warmer and cheaper to run is how we will drive down energy bills and make cold homes a thing of the past.

We recognise that we need to support households struggling with bills whilst we transition to clean power by 2030. This is why we delivered the Warm Home Discount to around 3 million eligible low-income households last winter. On 25 February, we published a consultation on the expansion of the Warm Home Discount, giving more eligible households £150 off their energy bills. These proposals would bring around 2.7 million households into the scheme – pushing the total number of households that would receive the discount next winter up to around 6 million. The consultation has now closed, and the Department is evaluating the responses.

The Government is continuing to work with Ofgem and energy suppliers to ensure energy bills remain fair and affordable while we transition to clean power by 2030.

Details of Ministers’ and Permanent Secretaries’ meetings with external individuals and organisations are published quarterly in arrears on GOV.UK.

The Government response to the road fuels consultation, published on 30 October 2024, confirmed that the Government will implement the recommendation made by the Competition and Markets Authority (CMA) in its Final Road Fuel Market Study to set up a statutory open data scheme for fuel prices, called Fuel Finder.

Fuel Finder will increase price transparency and help drivers easily compare prices and find the best deals. This will increase pressure on fuel retailers to compete strongly to attract customers. Subject to legislation and parliamentary timings, we aim to launch Fuel Finder by the end of 2025.

The Warm Homes Plan will help upgrade homes across the country, including in Newton Abbot, by accelerating the installation of efficient new technologies like heat pumps, solar, batteries and insulation.

The Government is helping make heat pumps more efficient and easier to install. This includes increasing funding for the Boiler Upgrade Scheme (BUS) to £295 million for this financial year, removing outdated planning rules and consulting on product efficiency standards.

As the first step towards the Warm Homes Plan, the Government has committed an initial £3.4 billion over the next 3 years towards heat decarbonisation and household energy efficiency. Further details on the Warm Homes Plan will be set out in due course.

The Warm Homes Plan will help people find ways to save money on energy bills and transform our ageing building stock into comfortable, low-carbon homes that are fit for the future. We will upgrade up to 5 million homes across the country by accelerating the installation of efficient new technologies like heat pumps, solar, batteries and insulation. By enabling consumers to utilise electricity when it is cheaper, deploying smart electric heating can help reduce consumer bills.

Further details on the Warm Homes Plan will be set out in due course.

On 24^th of April 2025, the HyNet Carbon Capture and Storage transport and storage network (Liverpool Bay CCS) which spans Northwest England and Wales, announced financial close, with a substantial pipeline of projects lining up to join the network. Along with the East Coast Cluster, these networks of green industry, backed by £21.7 billion in funding, will deliver thousands of jobs, billions of investment, and enable clean homegrown energy for years to come. Equally in 2024, the Stakehill Industrial Estate was granted £612,376 in support under the Local Industrial Decarbonisation Plan (LIDP) scheme, to develop a decarbonisation plan that includes the adoption of green technologies, energy efficiency upgrades and infrastructure solutions.

The UK joined the Coalition on Phasing out Fossil Fuel Subsidies (COFFIS) at COP29, which demonstrates the UK’s continued engagement on fossil fuel subsidy reform. The UK has recognised for a long time that our economy will need to become less reliant on fossil fuels to reach our net zero targets. That’s why we’ve taken steps including abolishing an investment allowance for oil and gas production from 1 November 2024 and phasing out coal power in Great Britain as of October 2024.

We know net zero requires a wide-reaching transformation of the UK economy, but equally, it will be an incredible opportunity for jobs and growth all across the country. There is a huge opportunity for reskilling and transferability of skills across the economy. The Office for Clean Energy Jobs (OCEJ) will support efforts to enable workers from high carbon sectors, including oil and gas, to move to clean energy jobs by targeting skill interventions to reskill and upskill workers.

DESNZ has established the Office for Clean Energy Jobs (OCEJ) to ensure that clean energy jobs are abundant, high quality, paid fairly, and have favourable terms and good working conditions.

Through OCEJ we have launched several pilot initiatives, including a series of Regional Skills Pilots. These pilots will help government and local and devolved partners develop a better understanding of what local interventions are the most successful in building the skilled workforce needed to meet the UK’s Clean Energy Superpower Mission. Aberdeen, Lincolnshire, Cheshire and Pembrokeshire have all been identified as key regions for clean energy and we are working, with local and devolved partners to empower them to develop their own plans for how best to target the funding.

By 2030, the clean energy transition could create hundreds of thousands of good new jobs across the UK, with evidence demonstrates that there is a high degree of transferability of skills between oil and gas and renewables roles.

The Government recently launched a consultation setting out the next steps in its overarching objective for the North Sea, to make it a world leading example of an offshore clean energy industry. The consultation seeks views on how we can best support North Sea oil and gas workers into clean energy industries and other high-growth sectors. The consultation closed on 30 April and we are now considering responses.

DESNZ has also established the Office for Clean Energy Jobs (OCEJ) to coordinate work that clean energy jobs are abundant, high quality, paid fairly, and have favourable terms and good working conditions. DESNZ is supporting a number of initiatives to support workers to retrain, transfer and be retained in clean energy sectors such as the Energy Skills Passport and series of Regional Skills Pilots the department launched earlier this year.

We are currently exploring the inclusion of greenhouse gas removals into the UK Emissions Trading Scheme, including the potential integration of high integrity woodland, such as Woodland Carbon Units under the Woodland Carbon Code. A consultation was launched in May 2024, and we will respond in due course.

There are currently no funded projects specifically for thorium-based nuclear technologies. Potential for future investment will be subject to the Spending Review and the scope of future R&D schemes.

The Government is not in favour of using Solar Radiation Modification. Given the significant uncertainty around the possible risks and impacts of deployment on the climate and environment, the Government is not deploying SRM and has no plans to do so.

The Department works closely with the research community to evaluate the latest research on the potential impact of solar radiation modification on the environment.

Hydrogen Allocation Rounds (HARs) remains our primary mechanism for allocating revenue support through the Hydrogen Production Business Model to low carbon, non-CCUS enabled hydrogen production facilities across the UK.

In the Autumn 2024 Budget, we confirmed support for 11 green hydrogen projects from the first Hydrogen Allocation Round (HAR1), and on 7 April 2025 we announced a shortlist of 27 projects that were invited to the next stage of the Second Hydrogen Allocation Round (HAR2) process.

This announcement reinforces the Government’s recognition of the key role low carbon hydrogen will play in delivering our Clean Energy Superpower and Growth Missions.

The UK is a strong advocate for carbon pricing and a pioneer on carbon markets, through domestic action and our support for the uptake of pricing and market schemes globally.

Harnessed properly, carbon markets can help deliver global climate ambition, mobilise much-needed finance to tackle climate change, and deliver cost-effective abatement and wider development benefits. They can play a crucial role in protecting forests internationally and in the UK.

Stakeholders have called for greater clarity on what constitutes a high-quality carbon credit and how credits should be used. Therefore, in November last year the UK Government published a set of guiding principles for high-integrity voluntary carbon and nature markets and in April this year we launched a consultation into steps that can be taken to implement these.

Through our climate finance programmes the UK has helped address the challenges linked with ‘project-based’ forest credits , for example, the ‘leakage’ of carbon emissions. We have worked with countries to develop jurisdictional approaches to Reducing Emissions from Deforestation and forest Degradation (REDD+), which cover entire countries or states, allowing greater transparency and the generation of higher-integrity carbon credits.

We know that too much of the burden of the bill is placed on standing charges. We are committed to lowering the cost of standing charges and have worked constructively with the regulator, Ofgem, on this issue.

On 20 February, Ofgem launched a consultation ‘Introducing a zero standing charge energy price cap variant’ - https://www.ofgem.gov.uk/consultation/introducing-zero-standing-charge-energy-price-cap-variant.

The consultation seeks views on the introduction of an option - within the price cap – for a tariff that does not have a standing charge, providing households with more choice over how they pay for their energy.

It also explores different ways a zero standing charge tariff could work, with options on a single unit rate, as well as block tariff options where the unit rates go up or down once a certain amount of energy is consumed.

The consultation closed on 20 March and we stand ready to continue work with Ofgem on this matter.

Under the Climate Change Act 2008, this plan must set out this government’s package of policies and proposals needed to deliver carbon budgets 4-6. By October 2025 we will deliver an updated plan out to the end of carbon budget 6 in 2037.

A Statutory Instrument to update the permitted development right for air source heat pump installations in England was laid in parliament on 8 May and will come into force on 29 May 2025. These changes will enable more households to install an air source heat pump without needing to submit a planning application. The Statutory Instrument can be found at: https://www.legislation.gov.uk/uksi/2025/560/made.

Following the conclusion of the first phase of the Spending Review on 30 October 2024, the Boiler Upgrade Scheme has a committed budget of £295 million for this financial year (2025/26).

The Boiler Upgrade Scheme is a critical element of the Government’s Warm Homes Plan. A decision on funding for 2026/27 onwards will be confirmed as part of the second phase of the multi-year Spending Review, which will conclude in June this year.

The Government is working to enhance our existing digital consumer advice offer on gov.uk by streamlining services into a single access point for all domestic consumers (homeowners, landlords and tenants. This will simplify the user experience and enable consumer to begin and progress their home upgrade and clean heat journeys. It will bring information, advice, sources of funding and links to trusted installers into one place and will consolidate existing services that enable consumers to create their own energy efficiency action plans and create direct referrals to grant scheme providers.

The Department publishes Household Energy Efficiency Statistics reports which provide detailed breakdowns of measures installed under various government support schemes.

Statistics for 2023 are available on GOV.UK: https://www.gov.uk/government/statistics/household-energy-efficiency-statistics-detailed-report-2023

Statistics for 2024 are available on GOV.UK: https://www.gov.uk/government/statistics/household-energy-efficiency-statistics-detailed-report-2024

The Warm Homes: Local Grant has started delivery this year.

We are committed to meeting fuel poverty and Net Zero targets, and we are currently considering what policy mix will best achieve that, including what role energy company obligations should play post-2026. We will ensure that lessons learned from the Energy Company Obligation 4 (ECO4) and the Great British Insulation Scheme (GBIS) form part of these considerations and that any successor schemes are confirmed once decisions have been made.

There are multiple targeted schemes to deliver energy efficiency measures to low-income and fuel poor households. The Warm Home Discount schemes also provide a £150 rebate off bills to eligible low-income households across Great Britain, and we have recently consulted on expanding this scheme to an extra 2.7 million households from next winter. We published a Review of the Fuel Poverty Strategy which closed in April, and we are currently considering the responses received.

The Government has also kickstarted delivery of the Warm Homes Plan, including an initial £1.8 billion to support fuel poverty schemes over the next 3 years, helping around 225,000 households reduce their energy bills by around £200.

We continue to monitor energy prices and the price cap and are working to ensure bills are affordable for consumers in the long-term.

Invitations to meet should be sent in the normal way by post or by email.

Fuel switching from fossil fuels to electricity has the potential to significantly reduce emissions, making a central contribution to our carbon budget commitments. Clean, homegrown energy is the best way to protect billpayers and boost Britain's energy independence. This will allow the UK to build an energy system that can bring down bills for households and businesses for good.

Many electric technologies are more efficient than their gas counterparts, and therefore electrification has the potential to lower energy requirements for sites. The Government remains committed to supporting electrification and addressing the barriers to investment in electric technology. This includes further development of policy options to address the high cost of electricity relative to natural gas, and the implementation of planning reforms to speed up infrastructure development and unblock issues on grid connection delays.

Taking the points specified in the hon Member’s question in turn:

A) Fish & chip shops: Alongside the electrification of heating and cooling, a key approach for full electrification of a fish & chip shop could be switching from a gas fryer to an electric fryer. An electric fryer is more energy efficient and generally requires less maintenance than a gas fryer, but also tends to require higher upfront costs, and currently results in higher operating costs due to the higher price of electricity compared to gas.

B) Businesses: For many businesses based in commercial units or offices, full electrification would require an electric source of heating and cooling, such as heat pumps or electric boilers. Heat pumps are highly efficient, reducing carbon emission significantly, and can provide both heating and cooling. As with the gas fryer, greater energy efficiency from heat pumps and electric boilers would reduce energy consumption, however upfront costs and operating costs are generally higher than gas alternatives. Some businesses with high temperature heat requirements, such as those involved in manufacturing, amy also require more specialised electrification technologies.

C) Economic growth Electrification is the future for most UK industries, and brings with it a range of economic benefits. These include boosting the domestic supply chain, and supporting UK businesses to be more productive. Electrification will reduce the UK’s reliance on volatile fossil fuel prices, making the UK a more attractive place to do business leading to increased growth and jobs.

At present, government provides grants of up to £7,500 for low carbon heating systems through the Boiler Upgrade Scheme, which are available to small commercial buildings.

The Department is responsible for the policy framework within which the North Sea Transition Authority (NSTA) operates. The OGA Strategy outlines how the NSTA’s principal objective will be met. The NSTA does so in several ways – for example, facilitating collaboration across the basin.

The Building the North Sea’s Energy Future consultation, which closed on 30 April 2025, sought views on whether the NSTA’s principal objective of maximising economic recovery adequately reflects the current context in the North Sea and supports the Government’s strategic objectives. The Government will respond in due course.

The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently.

It remains our ambition to cut energy bills by up to £300 by 2030.

The creation of Great British Energy will help us to harness clean energy and have less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030. This, combined with our Warm Homes Plan to upgrade millions of homes to make them warmer and cheaper to run is how we will drive down energy bills and make cold homes a thing of the past.

We recognise that we need to support households struggling with bills whilst we transition to clean power by 2030. This is why we are delivering the Warm Home Discount to around 3 million eligible low-income households this winter. On 25 February, we published a consultation on the expansion of the Warm Home Discount, giving more eligible households £150 off their energy bills. These proposals would bring around 2.7 million households into the scheme – pushing the total number of households that would receive the discount next winter up to around 6 million. The consultation has now closed and the Department is evaluating the responses.

Embracing the opportunities that AI can provide to drive growth and productivity in the economy is a government objective. Building the low carbon economy of the future will lead to significant increases in electricity demand across many sectors. These projected increases were a key part of the analysis that underpinned the department’s Clean Power Action Plan, consistent with our net zero targets. By unlocking new low carbon electricity generation, improving access to the electricity grid and the efficient operation of the energy system we will achieve Clean Power by 2030. We will maintain secure, resilient energy supplies that can be used to enable these technologies.

Fuel switching from fossil fuels to electricity has the potential to significantly reduce emissions, making a central contribution to our carbon budget commitments. Clean, homegrown energy is the best way to protect billpayers and boost Britain's energy independence. This will allow the UK to build an energy system that can bring down bills for households and businesses for good.

Many electric technologies are more efficient than their gas counterparts, and therefore electrification has the potential to lower energy requirements for sites. The Government remains committed to supporting electrification and addressing the barriers to investment in electric technology. This includes further development of policy options to address the high cost of electricity relative to natural gas, and the implementation of planning reforms to speed up infrastructure development and unblock issues on grid connection delays.

Hydrogen will be key in reaching net zero, helping decarbonise industrial processes and heavy transport where it’s harder or more expensive to electrify, complementing wider electrification efforts. Hydrogen to power was identified in our December Clean Power Action plan as a key technology providing low carbon dispatchable generation at a range of scales, benefiting from the UK’s abundance of offshore wind and supporting a decarbonised power system.

We have a comprehensive framework of investible business models to support infrastructure deployment, supporting projects that create real jobs and growth. An update on our hydrogen strategy will be provided later this year.

Hydrogen will be key in reaching net zero, helping decarbonise industrial processes and heavy transport where it’s harder or more expensive to electrify, complementing wider electrification efforts. Hydrogen to power was identified in our December Clean Power Action plan as a key technology providing low carbon dispatchable generation at a range of scales, benefiting from the UK’s abundance of offshore wind and supporting a decarbonised power system.

We have a comprehensive framework of investible business models to support infrastructure deployment, supporting projects that create real jobs and growth. An update on our hydrogen strategy will be provided later this year.

Interconnector development is a developer-led process in GB. Projects are given regulatory approval through Ofgem, a process with no formal role for Government. We welcome Ofgem’s decision to approve five new interconnector projects, including two Offshore Hybrid Assets, in November 2024.

The Department is in regular communication with interconnector projects at all stages of development and we of course look to support their development where appropriate.

Details of Ministers' and Permanent Secretaries' meetings with external individuals and organisations are published quarterly in arrears on GOV.UK.

Funding arrangements for the Public Sector Decarbonisation Scheme in future financial years will be confirmed following the current Spending Review.

The Government regularly engages with European nations, including Norway, and with international partners on developments in the carbon capture, usage and storage (CCUS) industry, but has not specifically discussed access to the Northern Lights project.

The UK has one of the largest potential CO₂ storage capacities in Europe. We have an opportunity to offer CO₂ storage services to neighbouring countries, providing new growth opportunities and supporting regional decarbonisation.

The UK has applied a 2009 Amendment to the London Protocol allowing us to enter into bilateral agreements or arrangements with third countries for cross-border transport of CO₂ for permanent geological storage.

The Government recognises the important role of local places in driving action to support net zero targets. Whilst we do not require Local Government to report on their net zero work, we run a Local Net Zero Delivery Group to discuss key net zero policy and delivery issues - this helps to inform our understanding of net zero action and share best practice at the local level.

The Government recognises the important role of local places, including Greater Lincolnshire, in driving action to help realise our national net zero targets. The English Devolution Whitepaper sets out the Departments approach to English Devolution.