Committee publication · Correspondence · 15 April 2026 · HC 459

Correspondence from E.ON following up from 4 March session, dated 20 March 2026

Inquiry: GB Energy and the net zero transition

Summary

E.ON's follow-up correspondence to the Scottish Affairs Committee details its engagement with local authorities on energy transition, including partnerships with Coventry, Glasgow, and Sheffield councils. The letter expands on a Distribution System Operator trial with Northern Powergrid, community energy projects, and E.ON's position on Ofgem's review of energy system cost allocation, emphasising the need for stable regulatory frameworks and targeted affordability support.

Key findings

E.ON operates strategic partnerships with local authorities across the UK: 15-year partnership with Coventry City Council on net zero projects; collaboration with Glasgow City Council on fuel poverty; multi-million-pound investment in Sheffield's district heating network; Lockerbie biomass plant supporting 300+ jobs and hydrogen supply chain.
DSO trial with Northern Powergrid aims to reduce household electricity bills by £220 through domestic battery storage with no upfront customer cost, while supporting vulnerable households and demonstrating network flexibility benefits.
Trial has identified barriers: fuel-poor households risk being excluded from low-carbon technology access; energy transition could widen inequality without targeted support; private capital requires clear regulatory frameworks; DNOs cannot always access needed flexibility.
E.ON supports community energy integration, citing benefits including lower energy bills, expanded clean energy access, local value retention, and strengthened community involvement in energy generation.
E.ON positions on Ofgem's cost allocation review: ensure charges are cost-reflective, shift policy costs from energy bills to general taxation, target affordability support, align supplier charging with how suppliers are charged, and provide 18-month implementation lead time.

Tone

Procedural

Topics

energy-transitionnet-zerofuel-povertyrenewable-energylocal-authorities

Key actors

E.ON, Patricia Ferguson MP, Scottish Affairs Committee, Coventry City Council, Glasgow City Council, Sheffield City Council, Northern Powergrid, Ofgem

Notable line

“… the energy transition could widen inequality without targeted support; private capital won't scale without c lear, stable regulatory frameworks …”

Key Quotes

“E.ON works closely with local authorities to support the delivery of net zero ambitions, the deployment of low-carbon technologies, and the development of local energy systems.”
— E.ON · describing engagement approach with local authorities

“Reducing household electricity bills by around £220 through the use of domestic battery storage that provides services to the distribution system operator.”
— E.ON · key objective of DSO trial with Northern Powergrid

“… fuel-poor households' risk being left behind in accessing low-carbon tech; the energy transition could widen inequality without targeted support; private capital won't scale without c lear, stable regulatory frameworks …”
— E.ON · identified barriers from DSO trial experience

“… community energy can provide significant benefits if properly integrated into the wider energy system”
— E.ON · response to concern raised about community energy projects

“Shifting some policy costs from energy bills to general taxation to improve affordability and support economic growth.”
— E.ON · position on Ofgem's cost allocation review

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Source · parliament.uk record ↗