Written questions by Foy.

What assessment his Department has made with Ofgem of the potential merits of allocating more funding to local power grids to help ensure the reliability of levels of power supplied to rural communities.

The Government is engaging with Ofgem to ensure that the distribution price control enable the required local infrastructure to power local communities. The current electricity distribution price control (RIIO-ED2 2023-2028) has allowed £22.2bn for upfront investment in low voltage networks, including £3.1bn for network upgrades. For the next price control ED3 (2028 to 2033), Ofgem will rely on Regional Energy Strategic Plans (RESPs) to inform distribution network investment plans and will accommodate forecasted electricity demand to ensure reliable local power grid fit for the net zero transition.

What assessment his Department has made of the potential across the Durham Coalfield for producing sustainable geothermal energy from disused mines.

To achieve net zero at lowest cost, we must look at how to accelerate all low carbon technologies including geothermal. The mine water from coal mines shows good potential as a renewable source for heat networks. The government is therefore supporting mine water schemes at Gateshead and Seaham Garden Village through the Heat Network Investment Project and the Green Heat Network Fund. Whilst no specific assessment has been made of the Durham Coalfield potential the Northeast Local Enterprise Partnership published a report in 2021, assessing options to increase deployment and the Mining Remediation Authority has released opportunity maps.

What assessment his Department has made of the impact of data centres on regional energy usage, in the context of increases in the use of AI.

The Government supports AI development in the UK and the economic growth it could bring. The Department is working closely with the Department for Science, Innovation and Technology in setting up the AI Energy Council that will have senior representatives from both the energy industry and the AI industry to look at where best to locate AI data centres and to ensure the growth of AI and data centres in the UK is done in a way that supports our clean power mission and longer-term decarbonisation goals. For example, looking to seize opportunities that support grid balancing, reduce network costs, and utilise excess renewable energy.

What assessment his Department has made of the potential merits of replacing the standing charge on household energy bills with a measure based on usage.

Although standing charges are a commercial matter for suppliers, and are regulated by Ofgem, we know that too much of the burden of the bill is placed on them. The Government has worked constructively with the regulator on the issue of standing charges, and we are committed to lowering the cost of them. Ofgem’s proposal to move some operational costs from standing charges to unit rates would see low-income households’ overall bills reduced on average, but we are mindful of the distributional effects of changes to standing charges, particularly on vulnerable consumers. Ofgem’s recently published discussion paper sets out the options for how standing charges could be reduced, including by moving some supplier operational costs off standing charges onto the unit rate, increasing the variety of tariffs available for consumer in the market, and in the longer term, reviewing how system costs are allocated. Ofgem's publication can be found here: https://www.ofgem.gov.uk/call-for-input/standing-charges-domestic-retail-options.

If he will meet with Ofgem to discuss the potential merits of reducing the energy price cap for winter 2024-25.

The Energy Price Cap is set by Ofgem and there are different costs included in the price cap, such as the wholesale cost of energy. Any changes to these costs will affect how much the price cap will be each time it is reviewed, and the main driver of the price cap increase for the period 1 October to 31 December 2024 was an increase in wholesale energy prices. As such, the Government believes the only way to protect consumers permanently is to speed up the transition towards homegrown clean energy and reduce our reliance on volatile international fossil fuel markets. Whilst we make this transition to clean power by 2030, the Government is committed to ensuring vulnerable households are supported with their energy bills. We are looking at all options on how to make energy bills more affordable for these households. In the short-term, we are continuing to deliver the Warm Home Discount which provides a £150 annual rebate on energy bills for eligible low-income households. We are also working with energy suppliers to ensure they are providing additional support to vulnerable customers that are struggling with bills

What plans has he to support pensioners with the cost of energy in (a) City of Durham and (b) County Durham.

The Government is committed to supporting all consumers, including pensioners in the City of Durham and County Durham. We believe that the only way to protect billpayers permanently and to guarantee our energy security is to speed up our transition away from volatile, foreign, fossil fuel markets towards clean homegrown energy. In the short-term, we are continuing to deliver the Warm Home Discount which provides a £150 rebate off energy bills to eligible low-income households. In August, I met with energy suppliers to discuss additional support they can provide this winter and we are working together to ensure vulnerable consumers, including pensioners, are supported this winter.