The independent energy regulator, Ofgem, is responsible for the connections charging framework and the allocation of charges between developers, network operators, and consumers. Government is not tracking the network reinforcement cost data associated specifically with new data centres.

However, the department recently consulted on measures to manage the volume of data centres connecting to the electricity network, to secure capacity for vital data infrastructure in a way that minimises impacts on the energy system. A response will be published in due course.

Tackling high energy costs is a central priority for the Government. We are removing VAT from domestic electricity bills from 1 October, building on the average £150 reduction in energy bills announced at the last Budget. Around 6 million families are benefiting from the expanded Warm Home Discount.

All Government-supported heat pump installations must be certified under the Microgeneration Certification Scheme (MCS), giving consumers access to additional redress routes. Consumers should first raise concerns with their installer, consumer code or certification body.

We are committed to reforming the consumer protection system for Government supported home upgrades and are consulting on proposals.

Future electricity demand for both data centres and artificial intelligence overall is inherently uncertain. This is because different scenarios for capacity, efficiency, utilisation and ramp-up rates of data centres, as well as scenarios for AI adoption and speed of technological change, interact in complex ways and translate into varying annual electricity consumption.

The Government continues to work with the National Energy System Operator, Ofgem and industry to monitor developments and test how a range of scenarios interface with final consumption.

The Government recognises that policy costs fall disproportionately on electricity bills and are taking forward work to ensure that prices reflect the cheaper wholesale price of clean energy.

On the distribution of costs between electricity and gas, the Government acted at the Autumn Budget to cut electricity costs in a way that makes this distribution fairer. We ended funding for the Energy Company Obligation scheme, as well as removing 75% of costs for the Renewables Obligation scheme from people’s energy bills.

The government also announced in April plans to go further and faster on delinking electricity and gas prices. We will consult later this year on arrangements to offer existing generators a fixed price Contract for Difference for the electricity they generate. In addition, the rate of the Electricity Generator Levy has been increased by 10% to respond to the high prices that generators are benefitting from due to the crisis in the Middle East.

Network charges are set by the independent energy regulator, Ofgem, in line with the Connection and Use of System Code. As part of setting electricity transmission price controls under its RIIO‑T3 (ET3) Final Determinations, Ofgem carried out an impact assessment considering the overall effect of its decisions on domestic and non-domestic consumers. Details of Ofgem's impact assessment can be found through the following link: RIIO-3 Final Determinations – Impact Assessment

The Government and Ofgem closely monitor the impact of energy prices on businesses and communities and are committed to ensuring that energy costs are recovered fairly, including considering the ongoing role of standing charges.

This Government is taking decisive action to support farmers and fishers by cutting the duty on red diesel to its lowest rate in over 20 years, reducing the rates on red diesel by a third. Government has acted to prevent unfair practices like price-gouging, help those who rely on heating oil, and ensure businesses get a fair deal on their bills.

The National Energy System Operator (NESO) conducts independent modelling of future electricity demand and supply and strategic planning of the transmission network.

NESO’s Future Energy Scenarios (FES) provide a range of credible pathways for Great Britain's energy system to 2050. This informs strategic electricity network planning by assessing future demand, generation, storage and flexibility requirements.¹

NESO’s Beyond 2030 Update report (published 30^th June), draws on the FES, and sets out the network infrastructure needed through the 2030s.²

NESO’s assessment indicates that demand can be met through timely delivery of recommended network infrastructure to enable generation planned for the 2030s.

1. Future Energy Scenarios (FES) | National Energy System Operator
2. Beyond 2030 - Electricity Transmission Update | National Energy System Operator

The Department assesses that heat pump deployment, as part of the wider electrification of heat, is expected to increase annual and winter peak electricity demand over time. The precise impact depends on factors including the rate of deployment, heat pump performance, weather conditions and the availability of consumer-led flexibility. The Department models a range of plausible future demand trajectories to ensure that the electricity system remains flexible, resilient, and able to maintain security of supply under different pathways to net zero.

The Government is very clear that resellers such as landlords should not profit from reselling energy to consumers. The maximum price at which gas or electricity can be resold to domestic consumers is the same price that the reseller (such as the park home site operator) paid for it, including standing charges. This Maximum Resale Pricing (MRP) provides transparency and protections for consumers and is a matter for Ofgem as the independent regulator.

Currently, consumers who suspect that MRP has been breached can request evidence from landlords, review bills and contracts and, if necessary, pursue disputes through tribunals or civil courts.

However, Ofgem realise that enforcement mechanisms are failing to protect some consumers. Ofgem’s current review of the MRP sought views on fair pricing and consumer protection, with a policy consultation planned for Summer 2026.

The Government is very clear that resellers such as landlords should not profit from reselling energy to consumers. The maximum price at which gas or electricity can be resold to domestic consumers is the same price that the reseller (such as the park home site operator) paid for it, including standing charges. This Maximum Resale Pricing (MRP) provides transparency and protections for consumers and is a matter for Ofgem as the independent regulator.

Currently, consumers who suspect that MRP has been breached can request evidence from landlords, review bills and contracts and, if necessary, pursue disputes through tribunals or civil courts.

However, Ofgem realise that enforcement mechanisms are failing to protect some consumers. Ofgem’s current review of the MRP sought views on fair pricing and consumer protection, with a policy consultation planned for Summer 2026.

The Government is very clear that resellers such as landlords should not profit from reselling energy to consumers. The maximum price at which gas or electricity can be resold to domestic consumers is the same price that the reseller (such as the park home site operator) paid for it, including standing charges. This Maximum Resale Pricing (MRP) provides transparency and protections for consumers and is a matter for Ofgem as the independent regulator.

Currently, consumers who suspect that MRP has been breached can request evidence from landlords, review bills and contracts and, if necessary, pursue disputes through tribunals or civil courts.

However, Ofgem realise that enforcement mechanisms are failing to protect some consumers. Ofgem’s current review of the MRP sought views on fair pricing and consumer protection, with a policy consultation planned for Summer 2026.

The Government is very clear that resellers such as landlords should not profit from reselling energy to consumers. The maximum price at which gas or electricity can be resold to domestic consumers is the same price that the reseller (such as the park home site operator) paid for it, including standing charges. This Maximum Resale Pricing (MRP) provides transparency and protections for consumers and is a matter for Ofgem as the independent regulator.

Currently, consumers who suspect that MRP has been breached can request evidence from landlords, review bills and contracts and, if necessary, pursue disputes through tribunals or civil courts.

However, Ofgem realise that enforcement mechanisms are failing to protect some consumers. Ofgem’s current review of the MRP sought views on fair pricing and consumer protection, with a policy consultation planned for Summer 2026.

The Government is very clear that resellers such as landlords should not profit from reselling energy to consumers. The maximum price at which gas or electricity can be resold to domestic consumers is the same price that the reseller (such as the park home site operator) paid for it, including standing charges. This Maximum Resale Pricing (MRP) provides transparency and protections for consumers and is a matter for Ofgem as the independent regulator.

Currently, consumers who suspect that MRP has been breached can request evidence from landlords, review bills and contracts and, if necessary, pursue disputes through tribunals or civil courts.

However, Ofgem realise that enforcement mechanisms are failing to protect some consumers. Ofgem’s current review of the MRP sought views on fair pricing and consumer protection, with a policy consultation planned for Summer 2026.

The Government is very clear that resellers such as landlords should not profit from reselling energy to consumers. The maximum price at which gas or electricity can be resold to domestic consumers is the same price that the reseller (such as the park home site operator) paid for it, including standing charges. This Maximum Resale Pricing (MRP) provides transparency and protections for consumers and is a matter for Ofgem as the independent regulator.

Currently, consumers who suspect that MRP has been breached can request evidence from landlords, review bills and contracts and, if necessary, pursue disputes through tribunals or civil courts.

However, Ofgem realise that enforcement mechanisms are failing to protect some consumers. Ofgem’s current review of the MRP sought views on fair pricing and consumer protection, with a policy consultation planned for Summer 2026.

The Government is taking action to ensure that procurement and investment deliver benefits for communities across the UK, including promoting supply chain resilience, supporting domestic industry, and recognising social value in procurement decisions.

A move to public procurement of electricity would represent a significant change to the current market framework. It would need to be carefully assessed to understand the likely implications for costs, consumer bills, market function and investment in the energy system.

The most effective way to deliver sustained benefits to households and businesses is through the Government’s Clean Power mission, which will reduce exposure to volatile fossil fuel markets and bring down electricity costs for the long term.

At the Autumn Budget, HMG took £150 of costs off energy bills, partially achieved through moving 75% of the cost of the domestic Renewables Obligation (RO) to the Exchequer. This arrangement will continue for the next 3 years. The transfer of these RO costs to public expenditure is a significant step towards rebalancing levies away from electricity: cheaper electricity is the cornerstone of the low-carbon economy that we are building through our Clean Energy mission. We will continue to explore ways to both lower energy bills for consumers including the fuel poor, and reduce barriers for consumers to adopt clean technologies.

The Department does not hold information on the numbers of households using older direct electric heating and older storage heaters.

We recently consulted on the role of alternative clean heating solutions, including thermal energy storage systems such as storage heaters, for properties that may not be suitable for heat pumps or cannot connect to heat networks. Through this consultation, we sought evidence on the costs and barriers to uptake of alternative low‑carbon technologies. We are now considering responses and will publish our response in due course.

The Department recently consulted on the role of alternative clean heating solutions for properties that may not be suitable for heat pumps or heat networks. Through this consultation, we sought evidence on the costs and barriers to uptake of alternative low‑carbon technologies including high heat retention storage heaters. We are now considering the evidence received and will publish the Government response in due course.

Policy costs on bills over the last 10 years have been published on Ofgem’s website: Ofgem’s Default Tariff Cap data (‘Final levelized cap rates model (Annex 9)’, tab: 1c Consumption adjusted levels, row 42). A key priority of the Government is to tackle Britain’s affordability crisis: the Government is acting to bring bills down now and over the long term through the transition to clean, home-grown power, and will continue to explore ways to both lower energy bills for consumers and reduce barriers for consumers to adopt clean technologies.

Decarbonising heating in Scotland is largely devolved, allowing the Scottish Government to set its own policies and support schemes. Scottish households can access support through the Home Energy Scotland Grant and Loan scheme, including grants to replace old electric heaters with high heat retention storage heaters.

The Department has also consulted on alternative clean heating solutions, such as thermal energy storage, for properties across the UK that are unsuitable for heat pumps or heat networks. This sought evidence on costs and barriers to uptake. We are now considering responses and will publish our findings in due course.

Standing charges vary by region because the costs of the transmission and distribution networks differ from place to place; a ‘common tariff’ for the most isolated areas would smooth out those higher local costs so customers there avoid very high prices, but it would also mean more of those costs are shared across the wider customer base, putting some upward pressure on prices elsewhere.

The Government knows that, for many consumers, too much of the burden of the bill is placed on standing charges. We are working constructively with Ofgem to bring down the cost of standing charges.

Through its Cost Allocation and Recovery Review, Ofgem has also been reviewing how ‘fixed’ costs, which tend to be funded through standing charges, should be recovered in the future energy system.

The most recent update on this can be found here: Energy system cost allocation and recovery review - Ofgem - Citizen Space.