Government unveils new Department for Energy Security and Net-Zero

We welcome the new dedicated energy department that has been tasked with “securing our long-term energy supply, bringing down bills, and halving inflation”.

The newly created DESNZ department splits energy away from the Department of Business, Energy and Industrial Strategy (BEIS), which itself was established in 2016 by then Prime Minister Teresa May. BEIS took over from the Department of Energy and Climate Change, which had in turn been created in 2008.

Grant Shapps has secured the top role in the new department following a brief 4-month stint as Secretary of State for BEIS. Along with Shapps, DESNZ will be led by Jeremy Pocklington as permanent secretary, Clive Maxwell as second permanent secretary, as well as Jonathan Mills, Ashley Ibbett, Ben Rimmington, Lee McDonough, and Paul Monks as directors.

The shuffle has come ahead of this year’s Budget, due to be delivered in mid-March by Chancellor Jeremy Hunt. The Chancellor has already stated the 2023 Budget will include measures to encourage innovation in cleantech and to address the critical green skills gaps.

A Government statement said: “The move recognises the significant impact rising prices have had on households across the country as a result of Putin’s illegal war in Ukraine, and the need to secure more energy from domestic nuclear and renewable sources as we seize the opportunities of net zero.”

DESNZ’s key priorities include:

• Ensuring the security of our energy supply this winter, next winter, and in the longer term. This will include bringing down energy bills and reducing inflation.
• Ensuring the UK is on track for net zero, and supporting economic growth by “significantly speeding up delivery” of network infrastructure and domestic energy.
• Improving the energy efficiency of homes, businesses, and public sector buildings to meet the country’s 15% demand reduction ambition.
• Delivering the current energy bills support schemes for customers, and developing options for the long-term reform of the electricity market.
• Seizing the economic benefits of net zero, including jobs and growth through investment in green industries.
• Passing the Energy Bill to support emerging sectors such as carbon, capture, utilisation, and storage as well as hydrogen, to update energy system governance and reduce the consent time for offshore wind.

We hope the new department also implements the recommendations of Chris Skidmore, a fellow Conservative MP who in a recent Government report said Britain needs a “wind and solar revolution”.

The UK Government is legally required to update its flagship Net-Zero Strategy by the end of March and we look forward to seeing new DESNZ policies and strategies to accelerate the transition to net zero.