Asked by: Jonathan Edwards (Independent - Carmarthen East and Dinefwr)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, how many licenses OFGEM has awarded for companies to become Independent Distribution Network Operators.
Answered by Amanda Solloway
Ofgem has granted licences to 16 Independent Distribution Network Operators.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of whether Ofgem’s proposed Inflexible Offers Licence Condition will prevent energy companies from cutting off electricity capacity in one plant and offering electricity from another plant at a higher cost; and what estimate he has made of how much revenue energy companies have potentially made via balancing payments in each of the last five years.
Answered by Amanda Solloway
There are many factors that have driven the rise in balancing costs over recent years, including an ongoing and growing need to take actions to maintain system security and high energy prices throughout the wholesale market which have increased the costs of these balancing actions.
It is critical in all times that consumers pay a fair price for their energy. Ofgem have consulted on new rules to protect consumers from the high balancing costs witnessed in recent years and are working to introduce these new rules later this year. It would not be appropriate for me to comment on the effectiveness of the proposals at this stage.
Balancing costs over the last five years were:
- £1.2bn in 2018/2019
- £1.3bn in 2019/2020
- £1.9bn in 2020/2021
- £3.1bn in 2021/2022
- £3.9bn in 2022/23 (note: incomplete as March 2023 data is not yet available)
Source: National Grid ESO Monthly Balancing Services Summary data.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, which solid fuel suppliers his Department consulted in the development of the Alternative Fuels Payment scheme.
Answered by Amanda Solloway
The Government regularly engages with consumer groups, industry bodies, and other stakeholders, including fuel suppliers, and is working with them to spread the message to alternative fuel users. For example, fuel distributors have provided their customers with information about this scheme.
Asked by: Alan Brown (Scottish National Party - Kilmarnock and Loudoun)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, when his Department plans to respond to the letter of 7 March 2023 from the hon. Member for Kilmarnock and Loudoun on nuclear power.
Answered by Andrew Bowie - Shadow Minister (Energy Security and Net Zero)
I wrote to the hon. Member on 17 April about nuclear power.
Asked by: Alan Brown (Scottish National Party - Kilmarnock and Loudoun)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, how much funding his Department has allocated to the Track 2 Carbon Capture Usage and Storage clusters.
Answered by Graham Stuart
The Government launched Track-2 of the CCUS Cluster Sequencing Process in March to identify two additional clusters, contributing to the Government's ambition to capture 20-30 million tonnes CO2 per year across the economy by 2030.
The Government has supported industrial clusters (including potential Track 2 clusters) since 2019 to develop their Front End and Engineering Design (FEED) studies for the deployment of CCUS and other decarbonisation infrastructure, by providing £171 million of funding via the UKRI-led Industrial Decarbonisation Challenge (IDC).
On 15 March 2023, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced an unprecedented £20 billion investment in the early development of CCUS to help meet the Government’s climate commitments. This funding is not currently allocated to specific projects or tracks.
Asked by: Alan Brown (Scottish National Party - Kilmarnock and Loudoun)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, how much funding his Department has allocated to the succesful Track-1 carbon capture, usage and storage projects.
Answered by Graham Stuart
My Rt. Hon. Friend Mr Chancellor of the Exchequer announced £20bn of funding to store as much carbon and create as many jobs as possible through Track-1 and beyond.
Track 1 Projects have only been shortlisted at this point and are not guaranteed funding until negotiations are complete.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, for what reason Alternative Fuel Payments are not made to building society accounts.
Answered by Amanda Solloway
The system for bank account payments in the UK is more standardised than for building society payments. Therefore, to reduce the burden on local authorities, the Government has taken the decision to only allow bank account payments for the Alternative Fuel Payment.
Basic bank accounts are free to open, and do not have the same credit check requirements as a standard current account. Applicants can open a basic bank account in branch, or sometimes online or over the phone, depending on the bank.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether an appeal process is in place for people whose applications for the Alternative Fuel Payment are refused.
Answered by Amanda Solloway
Applicants should contact the contact centre helpline on 0808 175 3943 if the appeal relates to their initial application. If the appeal relates to evidence provided as part of the application, applicants should contact their Local Authority. Appeals may be escalated to the Department in some circumstances where further checks are required.
Asked by: Alan Whitehead (Labour - Southampton, Test)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what estimate he has made of the cost to energy customers of (a) Bulb Energy Ltd being placed in special administration and (b) the takeover by Octopus Energy.
Answered by Amanda Solloway
As per the recent NAO report, the latest estimate is that there will be an overall net cost of £240m: https://www.nao.org.uk/reports/investigation-into-bulb-energy/.
This estimate will be updated in due course once wholesale energy costs are fully reconciled.
Asked by: Fleur Anderson (Labour - Putney)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of public opinion on (a) installation and (b) capacity of onshore wind.
Answered by Graham Stuart
The Department conducts regular public opinion research into a range of energy technologies, including onshore wind. The full results of these studies are published on our website at https://www.gov.uk/government/collections/public-attitudes-tracking-survey.