PES Energy News – 13 February 2023 Table of contents:

01 – UK creates Department for Energy Security and Net Zero – The Prime Minister creates a Department for Energy Security and Net Zero during reshuffle

02 – MPs: ‘Net zero means energy security’ – In a letter to the British public, they claim the “support for green policies in parliament has strengthened”

03 – UK unveils certification scheme to verify sustainability of hydrogen – There is currently no recognised way for producers of low carbon hydrogen to prove the credentials of their products

04 – Suppliers deliver £8.5bn energy bill savings through ECO3 scheme – Ofgem said in total, since the ECO scheme launched in 2013, almost £19.3 billion in estimated lifetime bill savings have been achieved

05 – Energy Department to ask Britons to cut energy use by 15% – The new Department will work this year to improve the energy efficiency of buildings to meet the 15% demand reduction ambition

01 – UK creates Department for Energy Security and Net Zero

The UK has established a new government department focused on energy security and net zero following a mini reshuffle of ministers.

The Prime Minister has formally announced a governmental reorganisation and the creation of the Energy Security and Net Zero Department.

The former Business, Energy and Industrial Strategy (BEIS) Department will be split into the Energy Security and Net Zero Department, a promise made by Rishi Sunak during his Tory leadership campaign and the Department for Business and Trade.

Grant Shapps has been appointed as the new Secretary for Energy Security and Net Zero.

Downing Street said: “The move recognises the significant impact rising prices have had on households across the country as a result of Putin’s illegal war in Ukraine, and the need to secure more energy from domestic nuclear and renewable sources as we seize the opportunities of net zero.”

Responding to the announcement, Grant Shapps said: “Delighted to become the first Secretary of State for the new Department for Energy Security and Net Zero. My focus will be securing our long-term energy supply, bringing down bills and thereby helping to have inflation.”

The UK had a separate Energy Department before it was merged with the Business Department by Theresa May in 2016.

02 – MPs: ‘Net zero means energy security’

Cross-party MPs have affirmed their stance in support of net zero by writing a letter to the Guardian.

Signatories include the UK’s net zero czar Chris Skidmore and the Green Party’s Caroline Lucas.

The MPs state: “Over the past year, support for green policies in parliament has strengthened, not weakened, as the link between net zero and energy security has become ever clearer. Net zero means energy security. Net zero means clean energy. And net zero means lower bills.”

In light of the ongoing energy crisis, investment in renewable energy and a greener future has been touted by many scientists and organisations such as the International Energy Agency as a means to combat costs and climate change simultaneously.

On this subject, the MPs continued: “[By] reducing our reliance on volatile oil and gas, we can cut the cost of living and meet our climate targets. The environment remains a top concern of the British public, and we will continue to promote ambitious environmental leadership in parliament, so that our constituents are better off tomorrow than today.”

Other members of Parliament that signed the letter include Philip Dunne, Bim Afolami, Darren Jones, Ben Lake and Alexander Stafford.

03 – UK unveils certification scheme to verify sustainability of hydrogen

The new Energy Department has launched a new certification scheme to verify the emissions credentials of UK-based hydrogen production.

Currently, there is no method to prove that hydrogen products are low carbon. 

The government intends to begin consultation with interested parties with the aim to introduce the certification scheme by 2025.

Department for Energy Security and Net Zero Minister Graham Stuart said: “Consumers and businesses care about investing sustainably. Thanks to this new scheme, investors and producers will be able to confidently identity and invest in trusted, high-quality British sources of low carbon hydrogen, both home and abroad.

“I look forward to working with industry as we deliver hydrogen as a secure, low carbon replacement for fossil fuels that will help us move towards net zero, secure jobs and boost investment.”

04 – Suppliers deliver £8.5bn energy bill savings through ECO3 scheme

UK energy suppliers have UK energy suppliers have delivered more than £8.5 billion in estimated lifetime energy bill savings to fuel poor and vulnerable customers through the Energy Company Obligation 3 (ECO3) scheme, Ofgem has confirmed.

ECO is designed to help the UK tackle fuel poverty, maintain the security of the energy supply and reduce household emissions. ECO3 which ran from October 2018 to March 2022, was the third iteration of ECO – it obligated suppliers to promote measures that effectively reduce energy costs for low income, fuel poor and vulnerable customers.

The energy regulator estimated that when combined with the achievements of earlier ECO schemes over the last ten years, a total of 2.4 million households have been supported.

This has led to combined estimated lifetime bill savings of £19.3 billion and the estimated lifetime carbon savings amount to 58.2 MtCO2e.

05 – Energy Department to ask Britons to cut energy use by 15%

The government plans to set out further measures to encourage people to cut their annual energy usage by 15%.

Two days after the announcement about the government reshuffle, the newly-created Energy Security and Net Zero Department set out its priorities for the year ahead.

Among these first tasks, officials will have to urge households and businesses across the UK to slash energy use by 15% through energy efficiency schemes and other measures.

The new Energy Department will also ensure the UK is on track to meet its legally binding net zero commitments and support economic growth by significantly speeding up the delivery of network infrastructure and domestic energy production.

Last Thursday, as the Twitter account of the former Department for Business, Energy and Industrial Strategy disappeared, a new account for the new Department emerged.

Some Twitter users have criticised the fact that in its short description of the new Department on the government’s website, renewable energy organisations are not listed.

It shows a list of public bodies and agencies – Civil Nuclear Police Authority, Coal Authority, Nuclear Decommissioning Authority, Great British Nuclear; and North Sea Transition Authority among others.

However, sources from the Energy Department said those are public bodies associated with the new Department and do not include industry bodies ministers will engage with.

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