Written questions by Snell.

What assessment he has made of the effectiveness of the Microbusiness Protection Rules implemented by Ofgem.

Consumer protection rules are a matter for Ofgem, as the independent regulator. The Department continues to work closely with them to take forward the recommendations from the 2024 Non-Domestic Market Review, such as expanding access to the Energy Ombudsman and the development of a new regulatory regime for Third Party Intermediaries, such as energy brokers. As part of its Consumer Confidence programme, Ofgem has developed consumer outcomes for all consumers, both domestic and non-domestic. These clarify the consumer outcomes Ofgem wants the sector to deliver and how they will be embedded into its regulatory framework.

What recent discussions he has had with the Energy Ombudsman regarding the volume of business energy complaints.

The Secretary of State meets regularly with a wide range of stakeholders, where they discuss a variety of issues. Small businesses have been able to access the Energy Ombudsman since December 2024. Ofgem’s Complaints Handling Standards require energy suppliers to have suitable complaints processes for small business consumers and to signpost the Energy Ombudsman when matters have not been resolved. To further ensure that consumers are protected when things go wrong, we are proposing to strengthen the position of the Energy Ombudsman. This will allow consumers to have access to fairer and faster redress and will ensure that decisions made by the Ombudsman are implemented on time and in full.

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 assessment he has made of the adequacy in the level of availability of private sector green finance for business energy efficiency projects.

The Government recognises the importance of green finance as it is one of the fastest growing sub-sectors of a low carbon economy.The British Business Bank’s Green Growth Guarantee helps increase the supply of affordable finance for businesses investing in green technologies, by giving lenders confidence to support finance for green assets or lower the up-front cost of that finance.Small businesses across the UK benefitted from Government funding and support to help them invest in sustainability, to cut their operating costs and boost their business. A recent £2m Made Smarter Adoption Programme initiative helped SMEs lower their bills and become more energy efficient through investment in technology in areas like heating, insulation and solar power. The Government will continue to review support for business energy efficiency projects.

What plans he has to increase funding for the Industrial Decarbonisation and Energy Efficiency Roadmaps.

The government is providing significant funding to catalyse progress on industrial decarbonisation, including £9.4 billion in capital funding for carbon capture, usage and storage and £500 million to support hydrogen infrastructure. We are also continuing to develop policies to bring down electricity costs relative to gas for the non-domestic sector, including industry, and intend to consult on options. Further details will be set out in our new forthcoming plan for industrial decarbonisation in due course.

What steps his Department is taking to help micro-businesses invest in onsite renewable energy generation.

The Government recognises the importance of green finance as it is one of the fastest growing sub-sectors of a low carbon economy.The British Business Bank’s Green Growth Guarantee helps increase the supply of affordable finance for businesses investing in green technologies, by giving lenders confidence to support finance for green assets or lower the up-front cost of that finance.Small businesses across the UK benefitted from Government funding and support to help them invest in sustainability, to cut their operating costs and boost their business. A recent £2m Made Smarter Adoption Programme initiative helped SMEs lower their bills and become more energy efficient through investment in technology in areas like heating, insulation and solar power. The Government will continue to review support for business energy efficiency projects.

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 steps he is taking to improve transparency in the wholesale energy costs passed on to commercial tenants.

Energy re-sold to non-domestic tenants is a commercial matter between those two businesses dependent on their contract terms. Landlords in these situations have a legal duty to regularly inform their tenants of how much energy they have used and the price they have been charged for that energy.

Communities and Local Government, what assessment he has made of the potential impact of security deposit requirements on the cash flow of new start-up businesses.

Security deposits are common in commercial leases. Contractual terms, such as security deposits, are a private matter to be negotiated between parties. However, we would always advise that, where possible, parties seek advice before agreeing to any terms. The Government has commissioned the Law Commission to review key aspects of commercial leasing to ensure they are fit for a modern day context. This work is underway and further detail will be provided in due course.

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 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 effectiveness of the role of smart meters in helping businesses manage energy (a) demand and (b) costs.

Smart meters are being rolled out to small businesses across GB, with 67% of non-domestic meters upgraded by the end of 2025.Non-Domestic consumers with smart meters are expected to reduce their energy consumption by between 2.8% (electricity) and 4.5% (gas) per meter. Accurate bills from smart meters also ensure organisations pay for what they use, avoiding estimated bills (and any associated bill shock).Since October 2024, energy suppliers must provide small businesses with smart meters with free and regular information on their energy use based on their smart meter data, helping them manage their energy bills and reduce costs.

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 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 he is taking to encourage more competition in the commercial energy supply market.

We are building on the outcomes of Ofgem’s 2024 report into the non-domestic market, and subsequent actions to improve practices: Non-domestic market review: decision | Ofgem The Government and Ofgem continuously monitor the non-domestic energy market to ensure that there is a competitive market that is able to drive good outcomes for all consumers. The Government also plans to directly regulate Third-Party Intermediaries (TPIs), by appointing Ofgem as the regulator when parliamentary time allows. A regulated TPI market will drive pro-consumer competition between energy brokers and deliver better outcomes for energy consumers.

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 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 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 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 assessment he has made of the impact of energy costs on the competitiveness of the UK retail sector.

The government keeps the impact of energy costs on the competitiveness of the UK retail sector under review.Through our Clean Power 2030 mission we are taking action to accelerate the transition to clean, homegrown electricity helping to improve energy security and reduce exposure to the volatility of fossil fuel prices across of the UK economy. Alongside this, the government is considering a range of options to address the relative cost of electricity for non‑domestic users and to support the wider take‑up of low‑carbon heat, including through future consultation where appropriate.