Written questions by Holden.

Pursuant to the Answer of 13 January 2026 to Question 102835, under what conditions would a contract be terminated.

Where the generator is found to be non‑compliant with the conditions of public support, enforcement action is available, including the withholding of subsidy and contract termination. The Low Carbon Dispatchable Contract for Difference (LCD CfD) contains various rights of termination for the contract Counterparty (LCCC) in the event the Generator (Drax) breaches key obligations. This includes the ability to terminate the CfD in the event of repeated and material breaches of the sustainability requirements. For the full text setting out the LCD CfD Termination rights, see Termination - Part 12 (p.186) here: Low Carbon Dispatchable Contracts for Difference Terms and Conditions - Low Carbon Contracts. Any such action would be taken on the basis of evidence and in line with the relevant statutory and contractual frameworks.

What information their Department holds on (a) the proportion of tyres procured that were re-tread tyres for (i) Department-operated and (ii) commercially contracted heavy vehicle fleets, including lorries, buses and refuse vehicles and (b) the volume of tyres procured for those fleets that were single-use imported tyres in the last 12 months; and whether such information is held centrally or by individual contractors.

The Department for Energy Security and Net Zero does not hold the information requested by the Rt hon Member.

Pursuant to the Answer of 5 February 2026 to Question 110095, what assessment he has made of the potential impact of the absence of route-level ferry fare modelling risks on consumer price impacts for ferry-dependent communities.

The Government has not undertaken route level ferry fare modelling for the UK ETS domestic maritime expansion. This is because, as we set out in the Impact Assessment, operators’ commercial decisions, vessel utilisation and fare structures vary widely. The qualitative assessment indicates that any passthrough to consumers is likely to be modest. The Government will review the maritime element of the UK ETS in 2028 with further consideration of regional or distributional impacts.

Pursuant to the Answer of 5 February 2026 to Question 110095, whether the Department plans to publish route-specific or island impact assessments before domestic maritime is brought into scope of the UK ETS in 2026.

The Impact Assessment set out that it is not possible to robustly break down compliance costs to the level of individual routes or service types, as ticket prices, fare structures and commercial operating decisions vary widely. The Assessment therefore considers impacts at the sector and scheme level. The Authority consulted extensively with all operators, including those serving island mainland and shortsea routes, to ensure all perspectives informed policy development.

Whether his Department provides (a) funding and (b) any other support for increasing (i) grid capacity and (ii) enabling electrification at Portsmouth International Port.

The Maritime Decarbonisation Strategy, published in March 2025, sets out domestic goals and commitments to decarbonise maritime transport, and a call for evidence on Net Zero Ports was launched to assess future energy demand at ports such as Southampton and Portsmouth International. While the Government does not directly fund increases in electricity network capacity, we support Ofgem in their work to incentivise electricity network companies to invest strategically, ensuring plans reflect emerging demands from electrifying sectors. Through the UK Shipping Office for Reducing Emissions, Portsmouth International Port received nearly £20m of R&D funding to support a shore power trial.

Whether his Department provides (a) funding and (b) any other support for increasing (i) grid capacity and (ii) enabling electrification at the Port of Southampton.

The Maritime Decarbonisation Strategy, published in March 2025, sets out domestic goals and commitments to decarbonise maritime transport, and a call for evidence on Net Zero Ports was launched to assess future energy demand at ports such as Southampton and Portsmouth International. While the Government does not directly fund increases in electricity network capacity, we support Ofgem in their work to incentivise electricity network companies to invest strategically, ensuring plans reflect emerging demands from electrifying sectors. Through the UK Shipping Office for Reducing Emissions, Portsmouth International Port received nearly £20m of R&D funding to support a shore power trial.

A) what estimate his Department has made of the average additional cost per passenger ticket on domestic ferry services arising from the inclusion of domestic maritime within the UK Emissions Trading Scheme from 2026; b) what estimate has been made of the average additional cost per vehicle crossing; and c) whether these estimates vary by route type, including island-mainland, short-sea, and longer-distance domestic routes.

The Government has not produced estimates of the additional cost per passenger ticket arising from the inclusion of domestic maritime within the UK Emissions Trading Scheme. The Impact Assessment considers costs at sector-level rather than by route or fare type, as ticket prices and commercial decisions vary widely and cannot be robustly modelled. The Assessment finds compliance costs are modest relative to operators’ overall costs and does not identify significant consumer price impacts, but notes early evidence from the EU Emissions Trading System suggesting short‑sea shipping routes and ferry fares increased by 3-11% under comparable carbon pricing.

With reference to page 19 of the Final stage impact assessment entitled UK Emissions Trading Scheme (ETS) Scope Expansion - Domestic maritime, published on 25 November 2025, for what reason no quantified analysis was undertaken on the regional and equalities impacts.

The Impact Assessment did not include quantified regional or equalities analysis because the available evidence did not support robust estimations of impacts at that level of granularity. The Assessment finds that compliance costs are modest relative to operators’ overall costs and, as a result, a qualitative assessment found that regional or distributional impacts are expected to be limited. The Government will review the maritime element of the United Kingdom Emissions Trading Scheme in 2028 with further consideration of regional or distributional impacts.

Pursuant to the Answer of 9 January 2026 to Question 100965, if he will provide a link to that impact assessment.

The impact assessment for the response to the consultation on expansion to domestic maritime emissions can be found here:https://assets.publishing.service.gov.uk/media/692591b59fd433badebc3140/uk-ets-domestic-maritime-authority-response-ia.pdf We will publish a full impact assessment on the expansion to international voyages alongside the Authority Response to the consultation.

Whether he will approve arrangements under which electricity generated by Drax from imported wood pellets is used to supply data centres; and what assessment he has made of the carbon and environmental impact of such use.

The government is committed to ensuring that the UK’s AI infrastructure is developed in a way that is both sustainable and aligned with our net zero ambitions. The Low-Carbon Dispatchable Contract for Difference, covering Drax's generation from 2027-31, requires Drax to request permission should they wish to supply power to a data centre from their biomass units during this period. Should such a request arise, DESNZ, working with the Low Carbon Contracts Company, would assess this on its merits, taking account of security of supply, value for money, and sustainability matters. Without such permission any data centre on the site could not draw power directly from the biomass units during this period. Regardless of the supply arrangements, Drax is contractually obliged to meet enhanced sustainability criteria for their power generation, which include requiring 100% of the biomass used to be obtained from sustainable sources.

Whether Drax’s current Contract for Difference contains any binding obligations requiring the development and deployment of carbon capture and storage; and what assessment his Department has made of the continued burning of imported wood pellets for electricity generation under that contract.

The current Contract for Difference (CfD) and recently announced Low-Carbon Dispatchable CfD agreements will be in place until 2031 and do not include contractual requirements for the development of carbon capture and storage (CCS) at the site. The focus of the new CfD is ensuring security of supply for the contract duration, and the development of CCS in the future remains under consideration. The Government published an impact assessment in early 2024 as part of its consultation on support options for large-scale biomass generators. This assessment was consistent with the views of the Intergovernmental Panel on Climate Change (IPCC) which recognise that bioenergy can play a significant role in decarbonising economies, provided policies are in place to mitigate the use of unsustainable biomass.

With reference to the press release entitled Fuel margins remain “persistently high” and this is not explained by operating costs, CMA finds, published on 22 December 2025, what steps he is taking to help reduce average fuel margins for non-supermarket fuel retailers.

The Government notes the Competition and Markets Authority’s (CMA) annual road fuel monitoring report. Addressing the CMA’s findings, the Government is implementing Fuel Finder, a statutory open data scheme for road fuel prices to improve price transparency and incentivise competition in the market from both supermarket and non-supermarket retailers. The CMA also has statutory powers under the Digital Markets, Competition and Consumers Act 2024 to monitor the market and advise on any further action.

What the net zero targets for the Department and its arm’s-length bodies are; and what guidance has been issued on adopting net zero targets earlier than 2050.

The Net Zero target in the Climate Change Act 2008, is a target for the whole of the UK, not individual departments or arms-length bodies.Greening Government Commitments are the central framework setting out the actions UK government departments and their agencies will take to reduce their impacts on the environment, including setting targets to reduce emissions, during the framework period. Defra are reviewing the Greening Government Commitments to ensure that they remain aligned with government priorities.

Whether his Department has made an estimate of the compliance cost to the maritime sector of expanding the UK Emissions Trading Scheme to international maritime voyages in each of the subsequent ten years from 2028.

We published a consultation in late November seeking views on a number of proposals to expand the UK ETS to the international maritime voyages. When we responded to the consultation on expansion to domestic maritime emissions, we also published a full impact assessment. This includes detail on the compliance costs for the expansion to domestic voyages. We will publish a full impact assessment on the expansion to international voyages alongside the Authority Response to the consultation.

What recent assessment he has made of the impact of rising carbon costs on the viability of UK oil refineries.

The Government recognises the competitiveness challenges facing the refining industry and is determined to support the industry to address them and ensure the long-term future of the refining sector in the UK. In the Autumn Budget, the Government announced it is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism in future. The Emissions Trading Scheme Authority also recently published its Free Allocation review response which confirmed the sector remains eligible for free allocation, with current benchmarks maintained until 2028. UK Emissions Trading Scheme: free allocation review - GOV.UK.

What assessment he has made of the adequacy of the UK’s current regulatory framework for supporting cleaner hydrogen production for industrial sites.

Low carbon hydrogen will play a vital role in decarbonising industry, enabling the transition to a low carbon economy while protecting jobs and driving growth across the UK’s industrial heartlands. The current regulatory framework provides a strong foundation, including the framework to award Hydrogen Production Business Model support to producers to enable deployment. The Government will continue to ensure suitable regulatory frameworks for hydrogen as the industry develops, working with Devolved Governments and regulators. For instance, the Government published a response to consultation on an economic regulatory framework for hydrogen pipelines on 3 December.

Whether he plans to expand the UK Emissions Trading Scheme to cover international shipping.

The UK ETS Authority has published a consultation on expanding the UK ETS to international maritime voyages from 2028. We propose that 50% of emissions from international maritime voyages are covered by the scheme. The consultation runs until 20th January 2026.

Whether his Department has had discussions with Exxon Mobil Corp on the potential impact of rising carbon costs on the viability of UK refineries since its evidence to Parliament in October 2025.

Details of Ministers' and Permanent Secretaries' meetings with external individuals and organisations are published quarterly in arrears on GOV.UK.

Whether he has considered providing temporary relief from CO₂ compliance costs for UK refineries, in the context of two of the six UK refineries closing.

The Government recognises the vital role UK refineries play in energy security and continues to work closely with the industry. The UK Emissions Trading Scheme (ETS), incentivises cost-effective decarbonisation, and the ETS Authority decides any changes to it. The Free Allocation Review Response published in November confirmed the sector remains eligible for free allocation, with current benchmarks maintained until 2028, allowing time to develop supportive policy. The Government is committed to mitigating carbon leakage risk and, as announced at Budget is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism in future.

What comparative estimate his Department has made of (a) electricity prices for energy-intensive industries in (i) the UK and (ii) France and Germany and (b) grid and network charges in the UK and those countries.

The requested comparative estimates can be found in the Quarterly Energy Prices statistical publication published on GOV.UK. The most recent comparisons with EU countries are found in the June 2025 edition. Further comparative estimates including a discussion of the breakdown of network charging can be found in the consultation outcome relating to: The proposed uplift to the Network Charging Compensation Scheme for energy intensive industries published by the Department for Business and Trade in October of this year, and available here: Energy intensive industries (EIIs): consultation on the proposed uplift to the Network Charging Compensation Scheme for energy intensive industries - GOV.UK Estimates were also set out in the "international price gap" section of the consultation on the British Industrial Competitiveness Scheme, published on 24th November 2025. This consultation will be open for responses until 19th January 2026, and is available here: British Industrial Competitiveness Scheme: consultation on scheme eligibility and approach - GOV.UK