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To ask the Secretary of State for Energy Security and Net Zero, what discussions she has had with Ofgem on long-term electricity pricing reform.
To ask the Secretary of State for Energy Security and Net Zero, what discussions she has had with Ofgem on long-term electricity pricing reform.
The Secretary of State has regular discussions with Ofgem on a range of subjects including energy market reform.
The Government’s vision is for an energy market that works for consumers, is more resilient and enables households to benefit from cheap, clean power. We are also strengthening Ofgem so it can enforce higher standards and improve redress.
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to ensure that Regional Energy Strategic Plans are integrated with the Review of Electricity Market Arrangement reforms.
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to ensure that Regional Energy Strategic Plans are integrated with the Review of Electricity Market Arrangement reforms.
Regional Energy Strategic Plans (RESPs) and electricity market reforms are being developed as complementary parts of the Government’s approach to an efficient, secure and clean power system. The Review of Electricity Market Arrangements has transitioned to the Reformed National Pricing (RNP) Programme, which is developing electricity market reforms to help deliver the Strategic Spatial Energy Plan (SSEP). RESPs will provide regional evidence on future energy needs to support network planning. Officials are considering how RNP interacts with RESP and are working with the National Energy System Operator, Ofgem and stakeholders to ensure alignment between strategic energy planning and market reforms.
To ask the Secretary of State for Energy Security and Net Zero, whether electricity connection prioritisation for AI Growth Zones is being considered as part of wider grid reform and connection queue management.
To ask the Secretary of State for Energy Security and Net Zero, whether electricity connection prioritisation for AI Growth Zones is being considered as part of wider grid reform and connection queue management.
As announced in the ‘Delivering AI Growth Zones’ publication in November 2025, new measures to prioritise electricity connections for strategic demand projects will be used to support AI Growth Zones.
Government recently consulted on the detail of these measures and will publish its response in due course.
To ask the Secretary of State for Energy Security and Net Zero, whether the Government plans to reform the regulatory framework governing the resale of electricity on residential park home sites.
To ask the Secretary of State for Energy Security and Net Zero, whether the Government plans to reform the regulatory framework governing the resale of electricity on residential park home sites.
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.
This briefing provides an overview of data centres, including their economic impact, energy consumption, and water consumption. It describes UK Government policy in these areas, as well as cyber resilience and planning policy.
This briefing provides an overview of data centres, including their economic impact, energy consumption, and water consumption. It describes UK Government policy in these areas, as well as cyber resilience and planning policy.
To ask the Secretary of State for Business and Trade, what discussions he has had with the Secretary of State for Energy Security and Net Zero on long-term reform of the electricity market to decouple gas and renewable prices for business users.
To ask the Secretary of State for Business and Trade, what discussions he has had with the Secretary of State for Energy Security and Net Zero on long-term reform of the electricity market to decouple gas and renewable prices for business users.
The Secretary of State for Business and Trade continues to have regular discussions with all Cabinet colleagues, including the Secretary of State for Energy Security and Net Zero.
To ask the Secretary of State for Energy Security and Net Zero, what information he holds on the potential consequences of reforming the electricity market to decouple the price of electricity from the price of gas through changes to the current marginal pricing system.
To ask the Secretary of State for Energy Security and Net Zero, what information he holds on the potential consequences of reforming the electricity market to decouple the price of electricity from the price of gas through changes to the current marginal pricing system.
The Government has assessed the possible impacts of electricity market reform via the Review of Electricity Market Arrangements. Last year, it was confirmed that Great Britain will continue with a single, national wholesale electricity market using marginal pricing. Rather than fundamentally separating electricity prices from gas, the Reformed National Pricing Delivery Plan prioritises targeted reforms to reduce consumer costs while maintaining a secure, affordable and efficient electricity system. Key measures include better siting and investment signals, reduced network constraint costs, and more effective balancing. The Delivery Plan includes an assessment framework and will be underpinned by analysis and evidence.
To ask His Majesty’s Government what further consideration they have given to the case for energy market reforms following their decision not to implement zonal pricing.
To ask His Majesty’s Government what further consideration they have given to the case for energy market reforms following their decision not to implement zonal pricing.
My Lords, the review of electricity markets arrangements has concluded. This Government have decided to retain a national electricity market pricing regime and have established a programme called reformed national pricing. The purpose of the new programme is to deliver a cohesive package of reforms to improve the efficiency of our future power system. We will publish further detail on the reformed national pricing later this year, which will give market participants and investors clarity on our approach.
My Lords, the review of electricity markets arrangements has concluded. This Government have decided to retain a national electricity market pricing regime and have established a programme called reformed national pricing. The purpose of the new programme is to deliver a cohesive package of reforms to improve the efficiency of our future power system. We will publish further detail on the reformed national pricing later this year, which will give market participants and investors clarity on our approach.
My Lords, the review of electricity markets arrangements has concluded. This Government have decided to retain a national electricity market pricing regime and have established a programme called reformed national pricing. The purpose of the new programme is to deliver a cohesive package of reforms to improve the efficiency of our future power system. We will publish further detail on the reformed national pricing later this year, which will give market participants and investors clarity on our approach.
To ask His Majesty’s Government what further consideration they have given to the case for energy market reforms following their decision not to implement zonal pricing.
We still have some of the highest energy prices in Europe. Does the Minister agree with me that reducing the costs of energy for everyone has to be an absolute priority? What progress is being made on producing a clear programme to redistribute energy levies, and will the Government examine in
detail the Greenpeace policy proposals to remove gas plants into a regulated asset base, which it is claimed could save £5.1 billion a year by 2028?
We still have some of the highest energy prices in Europe. Does the Minister agree with me that reducing the costs of energy for everyone has to be an absolute priority? What progress is being made on producing a clear programme to redistribute energy levies, and will the Government examine in
detail the Greenpeace policy proposals to remove gas plants into a regulated asset base, which it is claimed could save £5.1 billion a year by 2028?
Delivering lower bills and a secure energy supply for families and businesses is absolutely at the heart of what we are trying to achieve through these reforms, particularly with moving towards renewables—that homegrown renewable energy sprint, as we are calling it—in order to get where we can as quickly as we can. The quicker we reduce our reliance on fossil fuels, the more quickly we can reduce bills and do more about getting off the gas grid, which I think is at the heart of the noble Earl’s second question. Of course, the Government are always happy to look at contributions from different groups and NGOs, but the important thing is that we focus on that transition to renewable energies to bring those bills down.
Delivering lower bills and a secure energy supply for families and businesses is absolutely at the heart of what we are trying to achieve through these reforms, particularly with moving towards renewables—that homegrown renewable energy sprint, as we are calling it—in order to get where we can as quickly as we can. The quicker we reduce our reliance on fossil fuels, the more quickly we can reduce bills and do more about getting off the gas grid, which I think is at the heart of the noble Earl’s second question. Of course, the Government are always happy to look at contributions from different groups and NGOs, but the important thing is that we focus on that transition to renewable energies to bring those bills down.
Delivering lower bills and a secure energy supply for families and businesses is absolutely at the heart of what we are trying to achieve through these reforms, particularly with moving towards renewables—that homegrown renewable energy sprint, as we are calling it—in order to get where we can as quickly as we can. The quicker we reduce our reliance on fossil fuels, the more quickly we can reduce bills and do more about getting off the gas grid, which I think is at the heart of the noble Earl’s second question. Of course, the Government are always happy to look at contributions from different groups and NGOs, but the important thing is that we focus on that transition to renewable energies to bring those bills down.
We still have some of the highest energy prices in Europe. Does the Minister agree with me that reducing the costs of energy for everyone has to be an absolute priority? What progress is being made on producing a clear programme to redistribute energy levies, and will the Government examine in
detail the Greenpeace policy proposals to remove gas plants into a regulated asset base, which it is claimed could save £5.1 billion a year by 2028?
On energy market reforms, should His Majesty’s Government not take advantage of the news that the North Sea oil reserves are now considerably higher than anticipated, and of a better quality and cheaper than imports of gas and oil, and therefore help to bring down energy prices?
On energy market reforms, should His Majesty’s Government not take advantage of the news that the North Sea oil reserves are now considerably higher than anticipated, and of a better quality and cheaper than imports of gas and oil, and therefore help to bring down energy prices?
As I have just said, the Government’s focus to bring down energy prices is moving away from reliance on fossil fuels, and I am sure the noble Lord is aware that oil is a fossil fuel. Our focus is on moving to a more renewable energy market, to take away that reliance and bring down energy bills through that route.
As I have just said, the Government’s focus to bring down energy prices is moving away from reliance on fossil fuels, and I am sure the noble Lord is aware that oil is a fossil fuel. Our focus is on moving to a more renewable energy market, to take away that reliance and bring down energy bills through that route.
As I have just said, the Government’s focus to bring down energy prices is moving away from reliance on fossil fuels, and I am sure the noble Lord is aware that oil is a fossil fuel. Our focus is on moving to a more renewable energy market, to take away that reliance and bring down energy bills through that route.
On energy market reforms, should His Majesty’s Government not take advantage of the news that the North Sea oil reserves are now considerably higher than anticipated, and of a better quality and cheaper than imports of gas and oil, and therefore help to bring down energy prices?
My Lords, I hope my noble friend the Minister can assure me that the Government are still very focused on helping with the development of small modular nuclear reactors and that she will ensure that they are built in this country —for example, in places such as Sheffield Forgemasters.
My Lords, I hope my noble friend the Minister can assure me that the Government are still very focused on helping with the development of small modular nuclear reactors and that she will ensure that they are built in this country —for example, in places such as Sheffield Forgemasters.
I thank my noble friend for the question. Nuclear energy is part of the Government’s strategy in order to have sufficient energy for this country and to move away from gas power stations, for example. Personally, I am keen on small modular reactors: they are very important as part of our nuclear energy mix. I know that colleagues of mine in Cumbria have been pressing that we should have them there, as well as in Sheffield.
I thank my noble friend for the question. Nuclear energy is part of the Government’s strategy in order to have sufficient energy for this country and to move away from gas power stations, for example. Personally, I am keen on small modular reactors: they are very important as part of our nuclear energy mix. I know that colleagues of mine in Cumbria have been pressing that we should have them there, as well as in Sheffield.
I thank my noble friend for the question. Nuclear energy is part of the Government’s strategy in order to have sufficient energy for this country and to move away from gas power stations, for example. Personally, I am keen on small modular reactors: they are very important as part of our nuclear energy mix. I know that colleagues of mine in Cumbria have been pressing that we should have them there, as well as in Sheffield.
My Lords, I hope my noble friend the Minister can assure me that the Government are still very focused on helping with the development of small modular nuclear reactors and that she will ensure that they are built in this country —for example, in places such as Sheffield Forgemasters.
My Lords, I refer to my interest as honorary president of National Energy Action. The warm home discount—for those households in greatest fuel poverty—has remained at £300 for the last few years. What plans do the Government have to increase that figure so that the poorest, most fuel-impoverished households will receive more money off their bills?
My Lords, I refer to my interest as honorary president of National Energy Action. The warm home discount—for those households in greatest fuel poverty—has remained at £300 for the last few years. What plans do the Government have to increase that figure so that the poorest, most fuel-impoverished households will receive more money off their bills?
Clearly, it is absolutely critical that we support families who struggle to pay their electricity bills. We do not want people to
be cold in the winter. I am not aware of any plans to increase that payment at the moment; I will get back to the noble Baroness if I am wrong. It is important to bring down bills but also to work with energy companies on their support for vulnerable customers, because there is a role for energy companies to play in that aspect.
Clearly, it is absolutely critical that we support families who struggle to pay their electricity bills. We do not want people to
be cold in the winter. I am not aware of any plans to increase that payment at the moment; I will get back to the noble Baroness if I am wrong. It is important to bring down bills but also to work with energy companies on their support for vulnerable customers, because there is a role for energy companies to play in that aspect.
Clearly, it is absolutely critical that we support families who struggle to pay their electricity bills. We do not want people to
be cold in the winter. I am not aware of any plans to increase that payment at the moment; I will get back to the noble Baroness if I am wrong. It is important to bring down bills but also to work with energy companies on their support for vulnerable customers, because there is a role for energy companies to play in that aspect.
My Lords, I refer to my interest as honorary president of National Energy Action. The warm home discount—for those households in greatest fuel poverty—has remained at £300 for the last few years. What plans do the Government have to increase that figure so that the poorest, most fuel-impoverished households will receive more money off their bills?
My Lords, I declare my interest as a director of Peers for the Planet. In response to the Government’s Carbon Budget and Growth Delivery Plan published last week, Nigel Topping, the chair of the Government’s statutory Climate Change Committee, said:
“Our number one recommendation remains to make electricity cheaper. This means taking policy costs off electricity bills”.
Does the Minister agree?
My Lords, I declare my interest as a director of Peers for the Planet. In response to the Government’s Carbon Budget and Growth Delivery Plan published last week, Nigel Topping, the chair of the Government’s statutory Climate Change Committee, said:
“Our number one recommendation remains to make electricity cheaper. This means taking policy costs off electricity bills”.
Does the Minister agree?
As I have said, one of our key priorities is to reduce bills for consumers, particularly for vulnerable customers. We will look at all aspects of how best to do that.
As I have said, one of our key priorities is to reduce bills for consumers, particularly for vulnerable customers. We will look at all aspects of how best to do that.
As I have said, one of our key priorities is to reduce bills for consumers, particularly for vulnerable customers. We will look at all aspects of how best to do that.
My Lords, I declare my interest as a director of Peers for the Planet. In response to the Government’s Carbon Budget and Growth Delivery Plan published last week, Nigel Topping, the chair of the Government’s statutory Climate Change Committee, said:
“Our number one recommendation remains to make electricity cheaper. This means taking policy costs off electricity bills”.
Does the Minister agree?
My Lords, energy companies made £30 billion profit last year, which is over £500 per household. This fuels inflation and poverty. Some 128,000 people die in fuel poverty each year. There is an urgent need to end profiteering by excluding gas-generated electricity from Ofgem’s marginal pricing formula. Can the Minister explain why, after 35 years, Ofgem’s pricing formula has not been reformed?
My Lords, energy companies made £30 billion profit last year, which is over £500 per household. This fuels inflation and poverty. Some 128,000 people die in fuel poverty each year. There is an urgent need to end profiteering by excluding gas-generated electricity from Ofgem’s marginal pricing formula. Can the Minister explain why, after 35 years, Ofgem’s pricing formula has not been reformed?
My noble friend asks about marginal pricing and refers to gas, because gas and electricity prices have been coupled together for many years. The market currently operates on the principle of marginal pricing, and the cost of electricity often tracks the cost of gas because gas generation frequently sets the wholesale price. It is a complex area. There are good reasons why the electricity market operates on that basis. Comparable countries tend to operate in this way as well. Over time, we need to rely less on gas, which means that electricity prices will become increasingly detached from the price of gas and be more frequently set by other generation, such as renewables. We see that as the way to bring prices down to support vulnerable people and to enable them to pay their bills. That is why our focus is on increasing renewable energy.