Written questions by MacDonald.

What steps he is taking to encourage consistent revenue-based contributions to community benefit schemes by onshore renewable developments.

On 21 May, the government published a working paper on community benefits and shared ownership of low carbon energy infrastructure. The paper seeks views on the proposed introduction of a mandatory community benefit scheme in Great Britain, which would require developers to contribute a set amount to a community fund. The working paper intends to gather insight into what level of benefit is appropriate and how best this is calculated. The government will need to consider the impact on operational costs for developers of infrastructure, impacts on bills, and meaningful level of benefit for communities. The government maintains regular engagement with key industry and community stakeholders across the country, which continues to inform policy development.

What recent assessment he has made of the potential implications for his policies of (a) Denmark’s Promotion of Renewable Energy Act 2008 and (b) other international models for statutory community benefit contributions from renewable energy developments.

In developing the government’s policy on community benefits, we have undertaken a review of international best practices to ensure our approach is effective and well-informed. This has included consideration of the Offshore Renewable Energy Support Scheme/Renewable Electricity Support Scheme in Ireland and other international examples.

What recent discussions his Department has had with SSEN Transmission on community benefits.

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

What estimate he has made of the total value of community benefit payments made by (a) onshore and (b) offshore renewable energy projects in each of the last five years.

The Department does not hold data on the value of community benefits payments made by onshore and offshore renewables across Great Britain. Community benefit schemes are administered by the projects themselves and provided voluntarily. We have however, recently publishing a Working Paper on mandatory community benefits and responses to this will help inform our evidence base.

What recent discussions he has had with renewable energy developers on establishing a statutory framework for community benefit payments based on a proportion of gross revenue.

On 21 May, the government published a working paper on community benefits and shared ownership of low carbon energy infrastructure. The paper seeks views on the proposed introduction of a mandatory community benefit scheme in Great Britain, which would require developers to contribute a set amount to a community fund. The working paper intends to gather insight into what level of benefit is appropriate and how best this is calculated. The government will need to consider the impact on operational costs for developers of infrastructure, impacts on bills, and meaningful level of benefit for communities. The government maintains regular engagement with key industry and community stakeholders across the country, which continues to inform policy development.

If he will take steps to ensure that community benefit payments from renewable energy developments are spent on (a) housing, (b) reducing levels of fuel poverty and (c) social care.

The government believes community fund packages will have the most impact if they can be tailored to the community’s preferences and priorities. The process should be community led and decisions on how community benefit funds are spent should rest with the community. This may include, for example, new school clubs, new bus routes, investment in biodiversity or local insulation.

What recent assessment he has made of the adequacy of the Government’s proposed Bill discount scheme of up to £2,500 over 10 years for those living up to 500m from new and significantly upgraded electricity transmission infrastructure.

The Government’s 'minded to' position of bill discounts of up to £2,500 over 10 years for those living up to 500m from new and significantly upgraded electricity transmission infrastructure aims to ensure communities are recognised for living within proximity of new infrastructure.

What assessment his Department has made of the potential impact of community benefit packages from new renewable energy infrastructure projects on Inverness, Skye, and West Ross-shire constituency.

At present, the provision of community benefits in Great Britain is voluntary . In Scotland, developers are strongly encouraged to provide community benefits in line with the Scottish Government’s Good Practice Principles. The government is, currently exploring mandating community benefits as we believe that where communities host this low carbon infrastructure they should benefit and the proposals were set out in the working paper the government published on 21 May. Under voluntary or mandatory schemes, the process should be community led and the fund tailored to local priorities so that the impact can be maximized.

What assessment he has made of the potential merits of introducing a statutory minimum revenue contribution from newly consented renewable energy developments to community benefit funds.

On 21 May, the government published a working paper on community benefits and shared ownership of low carbon energy infrastructure. The paper seeks views on the proposed introduction of a mandatory community benefit scheme in Great Britain, which would require developers to contribute a set amount to a community fund. The working paper intends to gather insight into what level of benefit is appropriate and how best this is calculated. The government will need to consider the impact on operational costs for developers of infrastructure, impacts on bills, and meaningful level of benefit for communities. The government maintains regular engagement with key industry and community stakeholders across the country, which continues to inform policy development.

Whether he has made an assessment of the potential merits of allocating a proportion of gross revenues from offshore renewable energy projects to local authority infrastructure funds.

Communities close to clean energy infrastructure should benefit from it. Offshore wind developers have established community benefit packages, and via the Planning and Infrastructure Bill, the Government has published guidance on community funds and direct benefits in the form of bill discounts. The Government has recently asked for views on the proposed introduction of a mandatory community benefit scheme in Great Britain and will respond in due course.

If he will make an assessment of the potential merits of applying a statutory 2% gross revenue contribution requirement to existing renewable energy projects over 1MW in capacity.

On 21 May, the government published a working paper on community benefits and shared ownership of low carbon energy infrastructure. The paper seeks views on the proposed introduction of a mandatory community benefit scheme in Great Britain, which would require developers to contribute a set amount to a community fund. The working paper intends to gather insight into what level of benefit is appropriate and how best this is calculated. The government will need to consider the impact on operational costs for developers of infrastructure, impacts on bills, and meaningful level of benefit for communities. The government maintains regular engagement with key industry and community stakeholders across the country, which continues to inform policy development.

What steps he is taking to increase the number of homes with heat pumps in Inverness, Skye and West Ross-shire constituency.

Heat policy is devolved to Scotland, 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 partner with devolved governments to roll out this plan. Further support for energy efficiency measures and clean heating systems, including heat pumps, in Scotland is available on the Home Energy Scotland webpage [https://www.homeenergyscotland.org/].

What assessment his Department has made of the potential impact of the RTS switch-off on consumers in Inverness, Skye and West Ross-shire constituency.

The Department and Ofgem have been clear that they expect energy suppliers to promptly arrange suitable replacement metering solutions for their remaining RTS customers. Suppliers should sufficiently resource themselves to ensure they have installer workforce capacity to replace RTS meters in rural and remote areas including Inverness, Skye and West Ross-shire. This could involve measures such as deploying roaming teams of installers in areas with low installer capacity. Ofgem has consulted on plans to ensure that suppliers must take all reasonable steps to provide an energy tariff that leaves all their customers ‘no worse off’ than before once their RTS meter is replaced.

What steps his Department is taking to ensure that consumers are not disadvantaged by the RTS switch-off scheduled for 30 June 2025.

DESNZ has stepped in to ensure there will be a managed and more controlled start of the Radio Teleswitch Service (RTS) phase out from 30 June. People with an RTS meter will not face any unexpected disruption to their heating or hot water at the end of the month. We urge any customers yet to arrange a replacement for their RTS meter to get in touch with their supplier as soon as possible.

What assessment his Department has made of the potential impact of pre-configured smart meters on radio teleswitch service customers who are unable to switch to a smart meter.

Ofgem and the Department have been clear that they expect suppliers to arrange a suitable replacement metering solution for their RTS customers in a timely manner ahead of the switch off. In the few circumstances where a Wide Area Network (WAN) connection cannot currently be established, pre-configured smart meters can be installed in households with RTS meters. A pre-configured smart meter operates in a similar way to an analogue meter, recording energy usage accurately, and can provide a similar service to what former RTS customers are used to, including delivering electricity tariffs such as Economy 7 or Economy 10.

What steps his Department is taking to support the Data Communications Company expand smart meter network coverage in the context of the Radio Teleswitch switch off.

The Department and Ofgem have been clear that they expect energy suppliers to promptly arrange suitable replacement metering solutions for their remaining RTS customers. The Data Communications Company (DCC) is examining options for premises not currently able to get smart metering network coverage as part of its Future Connectivity strategy, which includes a range of technical solutions.Where an RTS household does not currently receive coverage, energy suppliers can provide pre-configured smart meters, which operate like analogue meters, until a WAN connection can be established.

What assessment his Department has made of the potential impact of the transition from the radio teleswitch service on households in (a) rural and (b) remote areas; and what steps he is taking to ensure that these households are not disproportionately affected.

The Department and Ofgem have been clear that they expect energy suppliers to promptly arrange suitable replacement metering solutions for their remaining RTS customers. Suppliers should sufficiently resource themselves to ensure they have installer workforce capacity to replace RTS meters in rural and remote areas. This could involve measures such as deploying roaming teams of installers in areas with low installer capacity. Ofgem has consulted on new licence conditions which will seek to ensure consumers are treated fairly and have an alternative metering arrangement following the cessation of RTS.

What discussions his Department has had with (a) Ofgem and (b) energy suppliers on (i) providing additional financial support and (ii) targeted protection for vulnerable households with increased costs associated with the replacement of radio teleswitch service meters.

The Department attends the Industry Taskforce on the Radio Teleswitch Service, which was convened by Ofgem last year and is led by Energy UK. The Taskforce’s Call to Action in October 2024 highlighted that energy suppliers should fast-track meter upgrades to RTS customers, particularly prioritising vulnerable customers, ahead of the switch-off. Ofgem has also consulted on plans to introduce new RTS specific licence conditions for energy suppliers. These propose that suppliers must take all reasonable steps to provide an energy tariff that leaves all their customers ‘no worse off’ than before once their RTS meter is replaced.

Whether his Department has set a financial target for the reduction of energy bills by 2030.

The Government is determined to cut bills as far and as fast as we can. In October 2023, independent experts modelled the effect of a clean power system on electricity bills. Based on the latest renewable generation costs available at the time, they found electricity bills could be up to £300 cheaper by 2030 when compared with the cost of electricity in July-September 2023, which was higher than today’s levels. The independent NESO set out pathways to a clean power system in 2030, and confirmed it was deliverable, more secure, and could see a lower cost of electricity, and lower bills.

What recent discussions his Department has had with the utility companies on offering off-peak electricity prices at the same hourly rate applicable for charging an electric vehicle for people with electric storage heaters.

The Government is supportive of electricity suppliers offering tariffs which incentivise consumers, including electric vehicle owners, to consume energy at off peak times, as this benefits all consumers by reducing the need for additional grid capacity. The Government continues to work with Ofgem to ensure that tariffs, such as Economy 7 tariffs used by households with storage heaters, are priced fairly. This includes ensuring there is an appropriate price cap for Economy 7 tariffs.