As the Department for Energy Security and Net Zero continues to re-establish itself in this new Government, Brevia Energy brings you the top three developments in energy this week.
- Winter Fuel Payment
The Labour Government successfully fended off a Conservative-led motion that sought to block the Government’s proposed changes to the Winter Fuel Payment regulations. These changes will see the eligibility criteria tightened to a needs-based system, with only those in receipt of pensioner credit eligible.
While the move has faced strong criticism from opposition parties, unions, and even some Labour MPs, it did not provoke the expected widespread rebellion within the party. Only Jon Trickett, MP for Normanton and Hemsworth MP, broke ranks to support the Conservative-led motion. The motion was ultimately defeated by a vote of 348 to 228, with 52 Labour MPs abstaining.[1] The Labour leadership was quick to note that of the 52, only 12 did not have official permission to be absent. Labour ministers have been steadfast in their defence of the reform, citing the need for budgetary discipline following what they describe as overspending by the previous Conservative Government.
- New Chair of the Energy Security and Net Zero Committee
Labour MP Bill Esterson has been elected Chair of the Energy Security and Net Zero (ESNZ) Select Committee, defeating fellow Labour MP Melanie Onn by 300 votes to 253.[2] Esterson was first elected as MP for Sefton Central since 2010, having previously spent 15 years as a local councillor.
After graduating from Leeds University with a degree in Mathematics and Philosophy, Esterson worked as an accountant and as Director of a training consultancy, before joining Rochester-upon-Medway City Council in 1995, and then Medway Council from 1997 until his election to Parliament. An early supporter of Keir Starmer as Labour leader, Esterson held several Shadow Ministerial roles, most recently as a Shadow Transport Minister from September 2023 until the dissolution of Parliament in May 2024. Prior to this, he was a Shadow Minister for Business, Energy and Industrial Strategy for a cumulative period of almost six years between 2016 – 2020 and 2021 – 2023, and International Trade for five years, from 2016 – 2021.
His experience and statement of support for his election indicate an international and business-minded outlook for the Committee’s agenda, and his election aligns with the Government’s aims for closer alignment of energy and industrial strategy. Esteron has also previously been an officer of the Hydrogen, Manufacturing, and Skills, careers and employment APPGs, and we can expect this background to feed into his role as Chair of the Committee.
- Launch date of the National Energy System Operator
The highly anticipated launch of the National Energy System Operator (NESO) has seen some progress this week, with DESNZ announcing that NESO will be launched on 1 October 2024.[3] The establishment of the NESO follows an agreement between the Government and the National Grid for the former to acquire the Electricity System Operator, which will be transferred to public ownership. This new publicly owned body will oversee the planning and design of Britain’s gas and electricity systems, which will be integrated under one body for the first time. Through this integration, NESO is intended to improve the UK’s energy infrastructure and ensure its security and flexibility going forward. The new entity is expected to play a key role in advancing Labour’s target of achieving clean energy by 2030, addressing some of the present barriers such as grid connections.
Whilst yet to be officially launched, the Government’s Mission Control has already tasked NESO with providing advice on how the UK will hit its goal to deliver clean power by 2030 – with the first iteration of this expected by the end of the year. Other key publications to be provided by NESO over the next few years include the Strategic Spatial Energy Plan, the Future Energy Pathways report and the Centralised Strategic Network Plan.
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[1] BBC, ‘Cut to winter fuel payment set to go ahead after government wins Commons vote’, 9 September 2024, Link
[2] Energy Security and Net Zero Committee, ‘Bill Esterson elected as Chair of Energy Security and Net Zero Committee’, 11 September 2024, Link
[3] Department for Energy Security and Net Zero, ‘New publicly owned National Energy System Operator to pave the way to a clean energy future’, 13 September 2024, Link
