Written questions by Snell.

What assessment he has made of the prevalence of deemed rates being charged to businesses without fixed-term energy contracts.

Ofgem data, as of 31 March, shows that around 10–12% of businesses are on deemed contracts: Managing business energy costs in an uncertain market | Ofgem. Under Ofgem’s regulations suppliers must take all reasonable steps to ensure the terms of deemed contracts are not “unduly onerous”, including where revenue derived from deemed contracts significantly exceeds the supplier’s costs. The Government is working closely with Ofgem on reforms to strengthen protections and transparency in the non-domestic energy market, including the role of intermediaries. Businesses should check contract end dates, discuss renewal terms early, and compare offers to avoid being placed on out-of-contract rates, and secure good value contracts.

What steps he is taking to help prevent energy brokers from charging excessive hidden commissions to business clients.

Since 2024, Ofgem’s requirement for a contract’s principal terms to clearly display any broker fees has applied to all non-domestic consumers. However, the Government is aware that some rogue brokers continue to exploit consumers through excessive hidden commissions and other predatory sales tactics. That is why the Government plans to stamp out this exploitative behaviour, by appointing Ofgem to directly regulate Third-Party Intermediaries (TPI), including energy brokers, when parliamentary time allows.

What recent discussions he has had with Ofgem regarding the regulation of the non-domestic energy market.

The Government and Ofgem continuously monitor the non-domestic energy market to ensure that good outcomes are being delivered for all consumers. Recently, the Secretary of State and Ofgem’s Interim CEO wrote to non-domestic supplires and Third-Party Intermediaries (TPIs) to set out their expectations on how consumers should be supported during the current energy price volatility. The Government and Ofgem have collaborated to deliver a range of interventions in response to the findings of Ofgem’s non-domestic market review and the Government plans to directly regulate TPIs, by appointing Ofgem as regulator when parliamentary time allows. This will protect non-domestic consumers from exploitative and harmful practices employed by some TPIs.

What steps his Department is taking to improve the application process for energy efficiency grants.

The Department is improving the application process for energy efficiency grants by simplifying access and providing clearer guidance across schemes. Under the Government’s £15 billion Warm Homes Plan, we are streamlining delivery of the Warm Homes: Local Grant and the Warm Homes: Social Housing Fund, including plans to integrate low‑income schemes into a single capital offer, reducing complexity for applicants. For owner‑occupiers, the Boiler Upgrade Scheme provides upfront capital grant funding to reduce the cost of installing low‑carbon heating systems, and is administered by Ofgem through an installer‑led application process designed to minimise administrative burden for households. The Department has launched the ‘Find ways to save energy in your home’ service, providing impartial, tailored advice and information on government energy efficiency schemes through an easy to use online platform.

What estimate his Department has made of the potential energy savings for the hospitality sector through the adoption of heat recovery systems.

The Department for Energy Security and Net Zero (DESNZ) does not hold an estimation of heat recovery potential specific to the hospitality sector, though in 2014 the Department of Energy and Climate Change published research on the potential for recovering and using surplus heat from industry.DESNZ also incentivises Combined Heat and Power (CHP) across many sectors, an efficient process that captures and utilises the heat that is a by-product of the electricity generation process, via the voluntary Combined Heat and Power Quality Assurance (CHPQA) Programme. Sites with CHP typically see savings of around 20% on their energy costs. In 2024, there were 206 CHP installations in buildings classified as hotels in the UK (Digest of UK Energy Statistics 2025), the closest approximation to hospitality in the data.

What support is available to the food and drink sector to transition to low-carbon refrigeration.

Improving the energy efficiency of energy‑related products is an important part of the Government’s journey to Net Zero. The Energy Technology List is a government‑backed scheme featuring around 8,000 independently verified and accredited energy‑efficient products across 65 sub‑technology groups, including a wide range of refrigeration technologies used in the food and drink sector, and provides free, impartial information to support business procurement decisions. Additionally, between 2020 and 2024, the Industrial Energy Transformation Fund (IETF) offered the food and drinks sector more than £55m in grant funding to decarbonise and improve energy efficiency. This includes more than £7.7m for low-carbon refrigeration solutions. These projects will continue to be delivered until 2028 and are expected to make a lasting positive contribution to reducing energy bills and emissions.

What steps he is taking to help decrease the capital costs for businesses moving from gas to electric heating systems.

The government recognises that capital costs are a significant barrier for businesses looking to electrify. The government remains committed to supporting electrification for the non-domestic sector and addressing barriers to investment. Eligible businesses can receive grants of £7500 towards the cost of purchasing and installing heat pumps through the Boiler Upgrade Scheme, and last week (21 April) we announced an increase to £9,000 in grant support for those properties heated by oil and LPG.We are also continuing to develop policies to bring down electricity costs relative to gas for the non-domestic sector as well as reducing initial capital costs for electrification. We intend to consult on options to reduce costs and make low carbon heat the economically rational choice for a wider range of businesses in due course. Stakeholders will have a voice in shaping future electrification policy.

What assessment he has made of the adequacy of the take-up of the Industrial Energy Transformation Fund.

DESNZ has assessed the adequacy of take-up of the Industrial Energy Transformation Fund (IETF) through the Evaluation of the Industrial Energy Transformation Fund (alongside the IETF Benefit Report), published on 29th of January 2026. The evaluation found that the IETF was viewed by the majority of beneficiaries as an attractive offer by grant recipients and has supported the deployment of mature industrial decarbonisation technologies at scale. It found that most projects delivered by grant recipients would not have proceeded in the absence of IETF support, and that the fund filled a gap in capital expenditure support for these types of initiatives, allowing companies to take on more risk with feasibility studies and non-core technology projects.

What support his Department is providing to businesses to improve the energy efficiency of commercial premises.

The Government is providing funding for the Boiler Upgrade Scheme, increasing each year to 2029/30. Currently, the grant available for air source heat pumps and ground source heat pumps is £7500 and for air-to-air heat pumps is £2500. A one-year increase to £9000 for properties heated by oil or LPG was announced on 21 April. Specific funding for owners of commercial premises may be available through local schemes. Businesses can search for local grant and advice schemes on the finance and support for businesses page on gov.uk. The UK Business Climate Hub also provides support to non-intensive industries.

What assessment he has made of the impact of standing charges on the total energy costs of small businesses.

The Government recognises that standing charges can be a significant concern for some businesses. Ofgem is conducting a holistic review of how energy system costs, including network costs, should be paid for in the future, as part of its Cost Allocation and Recovery Review (CARR). The most recent update as to progress with this review can be found here: Energy system cost allocation and recovery review - Ofgem - Citizen Space. Alongside this, Ofgem’s work on the non-domestic market has highlighted the need to improve pricing transparency, and the Government has acted to strengthen protections for business consumers—such as measures to improve how businesses are supported in the market, including through action on third‑party intermediaries—so businesses can better understand what they are being charged and access better value contracts.

What steps he is taking to ensure that energy suppliers pass on price reductions to business customers in a timely manner.

The government recognises that high electricity prices are a significant pressure on businesses and a barrier to investment and growth. The only way to bring electricity bills down sustainably is by reducing the UK’s exposure to volatile fossil fuel markets, which is why business energy affordability is closely linked to the government’s Clean Power mission. My Rt hon Friend the Secretary of State wrote to business energy suppliers last month, setting the very clear expectation that small business energy customers must be treated fairly, including by third party intermediaries, who many small businesses rely on to negotiate their energy contracts. This set out the expectation that pricing needs to be fair, transparent and fully justifiable, reflecting genuine market conditions. To ensure we do not see unfair practices continuing, in the upcoming Energy Independence Bill we will be bringing in new regulation of third-party intermediaries, such as energy brokers and price comparison websites, as a further measure to protect small businesses from harmful practices like mis-selling and untransparent pricing.

What plans he has to introduce a successor scheme to the Energy Bills Discount Scheme.

Just as we are looking across Government at the situation that households face, the Government is absolutely focused on the impact of the crisis on business and industry, and we will not hesitate to act. We will continue to monitor the situation and consider what contingency plans need to be put in place. We are reviewing the support provided to business through the Energy Bill Discount scheme that ran until 31 March 2024, including the higher level of support provided to Energy Intensive Industries compared to the universal offer for all businesses.

How many businesses have received support under the Energy Bills Discount Scheme since its inception.

Just as we are looking across Government at the situation that households face, the Government is absolutely focused on the impact of the crisis on business and industry, and we will not hesitate to act. We will continue to monitor the situation and consider what contingency plans need to be put in place. We are reviewing the support provided to business through the Energy Bill Discount scheme that ran until 31 March 2024, including the higher level of support provided to Energy Intensive Industries compared to the universal offer for all businesses.

What assessment he has made of the adequacy of the Energy Bills Discount Scheme for small and medium-sized enterprises.

Just as we are looking across Government at the situation that households face, the Government is absolutely focused on the impact of the crisis on business and industry, and we will not hesitate to act. We will continue to monitor the situation and consider what contingency plans need to be put in place. We are reviewing the support provided to business through the Energy Bill Discount scheme that ran until 31 March 2024, including the higher level of support provided to Energy Intensive Industries compared to the universal offer for all businesses.

Whether he plans to reopen the Energy Bills Discount Scheme for energy and trade intensive industries.

Just as we are looking across Government at the situation that households face, the Government is absolutely focused on the impact of the crisis on business and industry, and we will not hesitate to act. We will continue to monitor the situation and consider what contingency plans need to be put in place. We are reviewing the support provided to business through the Energy Bill Discount scheme that ran until 31 March 2024, including the higher level of support provided to Energy Intensive Industries compared to the universal offer for all businesses.

What proportion of (a) tableware and (b) crockery used in his Department is made by a British manufacturer.

Tableware and crockery are not provided within the Department.

Pursuant to the Answer of 18 March 2025 to Question 38091 on UK Emissions Trading Scheme: Ceramics, which recommendations he supports for the decarbonisation of the ceramics sector; and what is the nature of that support.

I refer my hon Friend to the answer given in the House on 1 May which focussed on the ceramics sector. The Government recognises that we need to support a range of energy intensive industries, including ceramics, that are essential to our economy and our missions. For example, to build the 1.5 million homes and the clean energy infrastructure projects that this Government is already investing in. The Ceramics UK report mentioned describes a role for: energy efficiency improvements; addressing grid decarbonisation and self -generation; fuel switching to electrification, hydrogen and biomass; product and material adaptation; and addressing process emissions through a combination of Carbon Capture, Usage and Storage (CCUS) and addressing residual emissions. While the exact balance will vary between firms and between subsectors of industry, we expect a role for each of these measures, and are taking action to support and provide signals to the market on each of these. Government will bring forward a renewed industrial decarbonisation strategy in due course to address energy and decarbonisation issues across industries in a holistic way, and is committed to working closely with the ceramics sector as we develop that approach.

If he will introduce an energy price cap for (a) the ceramics industry and (b) other energy intensive industries.

The Government has no plans to introduce a non-domestic price cap. Businesses have different needs to households. Non-domestic demand varies in scale, flexibility and seasonality. From high demand from large industrial users to intermittent demand from some microbusinesses. Accordingly, there are a range of suppliers and energy products that are available to efficiently meet these needs. However, the Government is committed to championing businesses and improving non-domestic consumer protections. Since December 2024 Small and Medium Enterprises (SMEs) with fewer than 50 employees can now access free support to resolve issues with their energy supplier through the Energy Ombudsman. This means that 99% of British businesses can now access this service with outcomes ranging up to £20,000 in financial awards. Last year, the Government also 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.

Pursuant to the Answer of 13 March 2025 to Question 36729, if he will give an example of a cost effective solution to decarbonise for the ceramics sector.

Making Britain a clean energy superpower is one of the five missions of this Government — delivering clean power by 2030 and accelerating to net zero. British industries, such as those in the ceramics sector, have been held back by high electricity costs, which has often made investing here uncompetitive. The Government’s clean energy mission will drive down costs, making British businesses internationally competitive while our National Wealth Fund supports the most energy intensive sectors to decarbonise. A recent report from Ceramics UK, Decarbonising UK Ceramic Manufacturing, outlines potential solutions for decarbonising the ceramics sector.

Pursuant to the Answer of 13 March 2025 to Question 36729 on UK Emissions Trading Scheme: Ceramics, whether he has made a sectoral assessment of the potential merits of exempting ceramics from the UK Emissions Trading Scheme.

The UK Emissions Trading Scheme, whose coverage includes energy intensive industries such as those in the ceramics sector, allows installations who meet certain criteria to apply to be exempted from the main scheme by obtaining ‘small emitter’ classification. Over half of sites in the ceramics sector are already exempted from the UK ETS via achieving Small Emitter status. The UK Emissions Trading Scheme as an essential part of our approach to cutting emissions and driving green investment. UK ETS participants, including those in the ceramics sector, are provided with free allocations, to incentivise emissions reduction and protect energy intensive, trade exposed industries from the risk of carbon leakage. We have guaranteed current free allocation levels until 2027 and are currently reviewing how we calculate free allocations to better support sectors most at risk of carbon leakage. We will always work in the best interest of industry.