Written questions by Gilbert.

What his Department’s policy is for tidal stream in the upcoming Contracts for Difference allocation round.

Six new tidal stream projects secured contracts in Allocation Round 6 (AR6) of the Contracts for Difference Scheme. The UK is now on track to have 130MW of tidal stream deployed by 2029. The parameters for Allocation Round 7 (AR7) were published in July and the budget for technologies including tidal will be published later in the year. This will include any minima, maxima or ringfencing information.

Pursuant to the Answer of 5 September 2024 to Question 2198 on District Heating, when his Department plans to bring forward regulations to implement the Heat Network Market Framework.

The first part of the Heat Networks (Market Framework) (Great Britain) Regulations 2025 was signed into law on the 2nd of March 2025. The remaining parts of this regulatory framework will be laid in Parliament later this year, and Ofgem will assume its role as heat network market regulator on the 27th of January 2026. On the 1st of April, the redress, advice and advocacy functions of the Heat Networks Market Framework came into force. Under these schemes, the Energy Ombudsman, Citizens Advice, and Consumer Scotland will monitor the market and have powers to take enforcement action against operators that break the rules on metering and billing.

What his planned timetable is for the end of the policy development phase of the review of electricity market arrangements.

As set out in the Review of Electricity Market Arrangements Autumn Update, the Government plans to conclude the policy development phase of the REMA programme by mid-2025 and announce final decisions before the CfD Allocation Round 7 auctions open.

How many organisations he has had discussions with on zonal pricing are (a) in favour of and (b) against introducing zonal pricing.

The second REMA consultation sought views on a range of market reforms under consideration by Government, including zonal pricing. The outcomes of the consultation are available at https://www.gov.uk/government/consultations/review-of-electricity-market-arrangements-rema-second-consultationSince coming into office I have also met with stakeholders representing a wide spectrum of views on zonal pricing, with the purpose of considering all positions as we work towards making a decision on market reform.

What assessment he has made of the potential merits of introducing zonal pricing on private investment.

The Government is considering reforms to the electricity market through our Review of Electricity Market Arrangements (REMA). This includes consideration of whether to move to a zonal electricity market, where prices vary depending on local conditions, or to continue with a reformed version of our national pricing arrangements. Zonal pricing could have significant benefits, including through reducing the cost of energy to businesses. However, it also creates potential new risks to generators that need to be carefully considered. Any decisions on market reform will be based on a robust analysis of the costs and benefits. The Government plans to conclude the policy development phase of the REMA programme by mid-2025.

What estimate his Department has made of when the satellite sites for Great British Energy in Edinburgh will (a) be announced and (b) open.

This Government is focused on establishing Great British Energy at its Headquarters in Aberdeen. Additional sites in Glasgow and Edinburgh will follow in the longer term to ensure the company can tap into expertise across Scotland. Estimates for these additional sites will depend upon the detailed workforce plans for the new company, which are being developed.

What remit the Great British Energy satellite sites in (a) Edinburgh and (b) Glasgow will have.

This Government has been clear that Great British Energy (GBE) will be operationally independent, and decisions such as these will ultimately sit with the company itself. These additional sites in Glasgow and Edinburgh will allow GBE to tap into other expertise across Scotland, and workforce planning is ongoing to ensure the company secures the right skills in the right locations. The work GBE delivers across all of its locations will be in accordance with the strategic priorities, which will be set by the Secretary of State.

If he will make an assessment of the potential merits of reforming the Transmission Network Use of System charges.

Ofgem is legally responsible for network charging arrangements and both Government and Ofgem recognise the importance of transmission network charges in considering wider electricity system reform. There are both near- and long-term proposals being considered for reform of Transmission Network Use of System charges and Government officials will continue to work closely with Ofgem as these proposals develop.

What assessment his Department has made of the potential impact of Transmission Network Use of System charges on the viability of potential renewable energy projects in Scotland.

Ofgem is legally responsible for network charging arrangements. Government and Ofgem recognise the importance of transmission charges to the development of renewable generation in Scotland. This is why Ofgem established an industry Taskforce to consider near-term improvements to transmission charges and has proposed a temporary cap and floor to alleviate the projected rise, and increasing volatility, in Transmission Network Use of System charges. This is expected to provide generators with greater certainty in time for future Contracts for Difference allocation rounds, including the next - Allocation Round 7.

Whether his Department plans to extend Contract for Difference terms in future allocation rounds.

The Government reviews the Contracts for Difference scheme before every round to ensure it continues to deliver our objectives. We are currently working with industry to accelerate ways to build upon the successful outcome of the last auction so that we can deliver our goal of clean power by 2030.

What steps his Department is taking to consult with stakeholders ahead of the Contract for Difference Allocation Round 7.

We are currently working with industry to accelerate ways to build upon the successful outcome of the last Contracts for Difference auction, so that we can deliver our goal of clean power by 2030. We will also consult formally with stakeholders on any changes to the scheme ahead of Allocation Round 7.

What support his Department is providing to small and medium sized enterprises for energy bills.

The Government recognises that some businesses may be struggling to pay their bills. The Government believes that the only way to protect billpayers permanently, including small and medium sized enterprises, is to speed up the transition away from fossil fuels and towards homegrown clean energy. The creation of Great British Energy will help us to harness clean energy and have less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030. For non-domestic consumers who agreed to contracts at very expensive rates at the peak of price spikes, I recommend that they contact their supplier to enquire about ‘blend and extend’ contracts. These contracts blend the original, higher, unit rate with a new lower rate, spreading the cost over the course of an extended contract lifetime.

Whether he plans to regulate non-domestic energy prices.

The Government does not currently have plans to introduce an energy price cap for non-domestic energy consumers. The Government believes the only way to protect billpayers permanently, including non-domestic organisations, is to speed up the transition away from fossil fuels and towards homegrown clean energy. The creation of Great British Energy will help us to harness clean energy and have less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030. From 19 December we are expanding the remit of the Energy Ombudsman services so that small business consumers with fewer than 50 employees can resolve issues with their supplier through this service. This expands the level of support to 99% of businesses in Great Britain. In September we also launched a public consultation on regulating Third Party Intermediaries for non-domestic consumers, seeking views on different potential regulatory options for this market. Heat network consumers are not currently protected by the energy price cap, that is why the Government is introducing regulations to give them comparable protections that existing gas and electricity regulations provide. We are appointing Ofgem as heat network regulator who will have the power to intervene if prices appear to be disproportionate or unfair.

What recent discussions he has had with representatives in the energy sector on the development of an offshore energy passport.

The Secretary of State welcomes the delivery of an industry-led Skills Passport. This is an important step to help workers transition from carbon-intensive industries to new clean energy sectors as part of the Government's clean energy mission 2030.