New Government Department with a net zero mandate

Greg Davies 2022

Greg Davies
Director of Market Development, Assurity Consulting
21st February 2023

With objectives to “secure our long-term energy supply, bringing down bills and halving inflation” DESNZ is taking the energy portfolio from the former Department for Business, Energy, and Industrial Strategy (BEIS). Grant Shapps becomes the Secretary of State for Energy Security and Net Zero, with Graham Stuart as the Minister of State. 

Departmental responsibilities initially reflect well the Department name, four being identified and these being: 

  • Delivering security of energy supply 
  • Ensuring properly functioning energy markets 
  • Encouraging greater energy efficiency
  • Seizing the opportunities of net zero to lead the world in new green industries 

The short-term focus, as published on the DESNZ website includes priorities for 2023, covering: 

1. Ensure the security of the energy supply this winter, next winter, and in the longer term – bringing down energy bills and reducing inflation. 
2. 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. 
3. Improve the energy efficiency of UK homes, businesses, and public sector buildings to meet the 15% demand reduction ambition. 
4. Deliver current schemes to support energy consumers with their bills and develop options for long-term reform to improve how the electricity market works for families and businesses. 
5. Seize the economic benefits of Net Zero, including the jobs and growth created through investment in new green industries. 
6. Pass the Energy Bill to support the emerging CCUS and hydrogen sectors, update the governance of the energy system, and reduce the time taken to consent offshore wind.

Longer term, the focus on net zero and tacking operational as well as embodied carbon across all organisations will be key.