DESNZ monthly newsletter

Welcome to the latest bulletin from the Department for Energy Security and Net Zero, with updates on:

• Marking one year of DESNZ?
• High ambition on hydrogen
• Helping families to save on energy bills
• Other DESNZ news

Marking one year of DESNZ?

Marking one year of DESNZ?

This month we celebrated our first birthday. On 7 February 2023, the Prime Minister created the Department for Energy Security and Net Zero – one of the first countries in the world with an energy security department. It reflected the importance of securing cleaner, cheaper and more secure sources of energy as we decarbonise our economy by 2050.

In the last 12 months, we have made huge progress - reducing bills for the long term - protecting British families and businesses by driving Putin out of global markets.

We increased heat pump grants to ￡7,500 per household – making it one of the most generous schemes in Europe – and applications have increased by nearly 50% year-on-year.

We launched Great British Nuclear to oversee the revival of our nuclear sector and our nuclear roadmap set out the biggest expansion of nuclear power for 70 years.

We played a central role in reaching a global consensus at COP28, which for the first time ever committed countries to transition away from fossil fuels, as well as being one of the largest contributors to the Loss and Damage Fund.

We passed the biggest piece of energy legislation in UK history into law to help ensure energy is affordable for families and businesses and to make the UK more energy independent in the long-term.

We also launched our Connections Action Plan with the biggest reforms since the 1950s to get new projects on the electricity grid more quickly.?

We need to be hard headed about the challenges we face in an increasingly volatile world. That means making the most of our homegrown energy and it means getting to net zero without putting extra costs on families. We could not have achieved all of this without you and all the hard work that each of you have put in. Everything we do as a department relies on our close working relationship with partners in the industry and civil society.

So a huge thank you from me and I look forward to delivering even more together in 2024.

Jeremy Pocklington, Permanent Secretary

Department for Energy Security & Net Zero

High Ambition on hydrogen

On Tuesday 27 February the Secretary of State announced a ￡21 million boost for low carbon hydrogen for 7 projects to make green fuel to help power up local transport and businesses from Suffolk to Shetland.

Four projects will develop plans for new hydrogen production plants, to supply cleaner fuel to companies across a range of industries, while the remaining three are are set to create more home-grown hydrogen for industry and transport.

The government has also launched a call for evidence on the hydrogen and carbon capture, usage and storage (CCUS) elements of the ￡960 million Green Industries Growth Accelerator, announced at last year’s Autumn Statement.

This investment follows government support for 11 major new hydrogen projects announced in December 2023, which are expected to support over 700 jobs and unlock ￡400 million in new investment.

Helping families to save on energy bills

On Friday 23 February Ofgem announced a ￡238 fall in the energy price cap, its lowest level in 2 years.

At the same time the government launched a package of measures to help families save on energy costs and access cheaper deals.

Measures announced included:

• A call for evidence on standard energy tariffs examining how standard energy deals should work to pass on the cheapest electricity costs, to gain views on making these tariffs more flexible, so families pay less if using electricity at a time of day when prices are lower.
• A new scheme to help customers repair or replace smart meter in-home displays after the one-year warranty. Eight suppliers signed up to the scheme, including E, E.ON, Good Energy, Octopus, Ovo, Scottish Power, Utilita and Utility Warehouse.
• ￡10 million in funding for companies to test new technologies and tariffs with their customers, to make the most of cheap, low-carbon power.

Other DESNZ news:

• UK first major economy to halve emissions – 6 February
• UK strengthens collaboration on energy security and fusion – 14 February
• Department appoints 2 new non-executive directors – 20 February
• UK departs energy charter treaty – 22 February
• Demand for heat pumps surges - 29 February