Department For Energy Security

The Department for Energy Security and Net Zero’s trust statement records income collected on behalf of HM Treasury’s Consolidated Fund from the EU Emissions Trading System, UK Emissions Trading Scheme, Climate Change Agreements and Energy Saving Opportunity Scheme. In 2025–26, total revenue and other income reached £2.905 billion, including £2.787 billion from UK ETS auctions, producing net revenue of £2.904 billion for the Consolidated Fund. The Comptroller and Auditor General found that the statements gave a true and fair view, complied with applicable law and Treasury directions, and that transactions were regular. The statement also outlines DESNZ’s accounting responsibilities, financial risks, scheme administration costs, receivables, contingent liabilities and the absence of post-reporting-period events.

The evaluation examines the Local Industrial Decarbonisation Plans competition, a government initiative delivered in partnership with Innovate UK that provided £6 million in grants to dispersed industrial manufacturers outside the UK’s existing industrial clusters. Thirteen projects received funding to develop long-term decarbonisation pathways. Projects began in January 2024 and submitted final reports by March 2025. The evaluation, conducted by social researchers in the Department for Energy Security and Net Zero from 2025 to 2026, drew on interviews, a focus group and an online survey involving project partners and delivery stakeholders.

The UK government is finalising an electricity bill discount scheme for households within 500 metres of eligible new or significantly upgraded onshore transmission infrastructure. Eligible households are expected to receive up to £250 annually for up to 10 years, with most payments made automatically by electricity suppliers and others delivered through bank transfers or cash vouchers. Ofgem will administer the scheme, while Transmission Owners must identify qualifying projects, provide construction and geospatial data, and engage affected communities. The proposed design sets rules for property eligibility, overlapping infrastructure zones, landlord pass-through obligations, payment schedules, compliance, reviews and supplier reconciliation. Secondary legislation is planned for later in 2026, with first payments intended for the first half of 2027, subject to parliamentary approval.

The IPCC has opened the expert review period for the First Order Draft of the Working Group I contribution to the Seventh Assessment Report, following prior approval of the report’s outline and selection of authors. The report will assess the latest physical science of climate change. Registration for participation closes on 25 September 2026.

The government has agreed a 20‑year extension for the Sizewell B nuclear power station, keeping it operational until 2055 and supplying clean, domestically sourced electricity for 2.5 million homes. The agreement with EDF includes a future Contract for Difference set at £70.50 per megawatt-hour from 2035, with investment support from Centrica. The extension is expected to reduce system costs, protect consumers from fossil‑fuel volatility, and sustain around 900 skilled jobs. Officials emphasised the role of nuclear energy in strengthening the UK’s long‑term energy security, while industry leaders welcomed the certainty provided for investment and system reliability.

Approval of the One Earth Solar Farm establishes the UK’s second largest solar project, expected to power over 200,000 homes. The project marks the 30th major clean energy approval since July 2024, supporting efforts to reduce reliance on volatile fossil fuel markets amid global instability. Accompanying planning reforms aim to accelerate infrastructure development by cutting up to a year from approval timelines. Recent data shows record-high solar deployment in 2025, reinforcing the government’s push for homegrown clean energy and enhanced energy security.

The Heat Training Grant offers eligible heating engineers in England discounts of up to £500 on heat pump training. Eligibility includes working for a business with 250 or fewer employees, being a sole trader or unemployed, holding relevant heating and hot-water certification, and complying with subsidy limits. Participating manufacturers provide additional benefits such as cashback, product discounts, loyalty rewards, free training and first-installation support. After training, installers can pursue competent person scheme membership and MCS certification, enabling them to self-certify installations and offer customers grants of up to £7,500 through the Boiler Upgrade Scheme.