The Department for Business and Trade are negotiating a Free Trade Agreement with Israel to update the current partnership agreement. The existing agreement guarantees tariff free trade on 99% of goods by value but contains no provisions to facilitate trade in services.

Services comprise around 80% of both the UK and Israel’s economies but they only make up about 44% of total trade between us (in the 12 months ending September 2023). The trading relationship between the UK and Israel is valued at £6.4 billion (as of September 2023) and there is significant room for growth – given the UK is the world’s second largest exporter of services. An upgraded trade deal will play to British strengths and unlock trade for our world-leading services and digital sectors.

As part of the REMA programme we intend to consider a full spectrum of policy options, including locational marginal pricing. We look forward to receiving evidence from stakeholders following the publication of our consultation in the summer which will help us evaluate them, as well as bring other policy options to our attention.

Ofgem has updated its Consumer Vulnerability Strategy which set out its priorities to help protect gas and electricity consumers in vulnerable situations until 2025.

The energy price cap ensures prices for households fairly reflect the underlying costs of supply. The Government is faced with supporting households with the current high costs of energy with a £9.1bn package including an energy bills discount and Council Tax rebate.

A scheme operated by the NHS enables householders who use oxygen concentrators at home to receive a refund of the electricity costs used by the equipment.

Based on the report by the National Audit Office and its recommendations, the Committee of Public Accounts took evidence from HM Treasury and the Department for Business Energy and Industrial Strategy and published its report on the Green Homes Grant Voucher Scheme on 1 December 2021. The government response to the Committee’s report was published on 24 February with the government agreeing with all of the Committee’s recommendations.

The Government accepted the Climate Change Committee’s advice on setting the levels of carbon budgets 1-6; and setting a 2050 net zero target. The Climate Change Committee made clear in their advice on the 6th Carbon Budget, published in December 2020, that they do not consider it necessary to re-set the levels of the existing carbon budgets (carbon budgets 4 and 5, covering 2023-27 and 2028-32) in light of the net zero target having been set.

The UK over-achieved against the first (2008-12) and second (2013-17) carbon budgets, and the latest projections show that the Government is on track to meet the third (2018-22) carbon budget too. The Government exceeded the required emissions reduction in the first carbon budget by 1.2%, and the second carbon budget by nearly 14%.

Taken together, the transitions set out in the Net Zero Strategy for every sector of the UK economy keeps the Government on track for meeting Carbon Budgets 4, 5 and 6, the country’s international commitment under the Paris Agreement (the 2030 Nationally Determined Contribution), and net zero by 2050. The Government will continue to monitor its progress across these areas.

Ofgem has recently consulted on three areas of reform through its Access and Forward-looking Charges Review. First, it is proposing to reduce or remove the contribution to distribution network reinforcement costs paid by connecting customers. This would support the roll-out of low carbon technologies, including by further incentivising network companies to ensure that new connections can be accommodated on the network. Second, Ofgem is proposing to improve the definition and choice of rights that users have to access the distribution network, with the aim of supporting more efficient use and development of network capacity. Third, Ofgem is minded to remove a difference in charging arrangements between large and small generators, by extending transmission charges to small distributed generation.

Ofgem has published a draft impact assessment to support its proposals, which includes consideration of implications for investment decisions and constraint management. It is available at https://www.ofgem.gov.uk/publications/access-and-forward-looking-charges-significant-code-review-consultation-minded-positions. My Department is continuing to engage as Ofgem progresses the review, to understand how any decisions can help support delivery of a secure, net zero energy system at lowest cost to consumers.

Ofgem has recently consulted on three areas of reform through its Access and Forward-looking Charges Review. First, it is proposing to reduce or remove the contribution to distribution network reinforcement costs paid by connecting customers. This would support the roll-out of low carbon technologies, including by further incentivising network companies to ensure that new connections can be accommodated on the network. Second, Ofgem is proposing to improve the definition and choice of rights that users have to access the distribution network, with the aim of supporting more efficient use and development of network capacity. Third, Ofgem is minded to remove a difference in charging arrangements between large and small generators, by extending transmission charges to small distributed generation.

Ofgem has published a draft impact assessment to support its proposals, which includes consideration of implications for investment decisions and constraint management. It is available at https://www.ofgem.gov.uk/publications/access-and-forward-looking-charges-significant-code-review-consultation-minded-positions. My Department is continuing to engage as Ofgem progresses the review, to understand how any decisions can help support delivery of a secure, net zero energy system at lowest cost to consumers.

BEIS officials are engaging with Ofgem on its call for evidence on possible transmission charging reforms, to understand how any decisions can help support delivery of a secure, net zero energy system at lowest cost to consumers. The call for evidence was published on 1 October 2021, and is available at: https://www.ofgem.gov.uk/publications/tnuos-reform-call-evidence. It runs until 12 November 2021.

BEIS officials are engaging with Ofgem on its call for evidence on possible transmission charging reforms, to understand how any decisions can help support delivery of a secure, net zero energy system at lowest cost to consumers. The call for evidence was published on 1 October 2021, and is available at: https://www.ofgem.gov.uk/publications/tnuos-reform-call-evidence. It runs until 12 November 2021.

The process for awarding supply licences is independently set by Ofgem. Ofgem are reviewing their approach to supplier licensing, to ensure that appropriate protections are in place against poor customer service and financial instability. New market entry requirements came into effect in January 2021 focussed on the ongoing requirements on suppliers operating in the market to promote responsible risk management, improved governance and increased accountability.

The Secretary of State is in regular contact with Mary Ng to discuss the bilateral trading relationship as well as the ratification progress in Canada of the UK-Canada Agreement on Trade Continuity. When in force, the Agreement will commit both sides to begin fresh Free Trade Agreement negotiations, which will include a comprehensive review of procedures for the resolution of investment disputes between investors and states. These discussions will enable the UK and Canada to consider dispute settlement mechanisms that are best suited to the bilateral relationship.

The National Contact Point (NCP) is currently considering the findings of the review. In line with the terms of reference, the key findings will be published on the NCP website later this year following consultation with the NCP Steering Board.

The UK Government recognises its commitments under the OECD Multi-National Enterprise Guidelines and maintaining a National Contact Point (NCP) which operates in line with international best practice. The NCP Steering Board contributes to this by oversight and monitoring of the effectiveness of the operation of the NCP, ensuring correct and fair procedures are followed in line with the established and published procedures for dealing with complaints.

The Steering Board was established in 2007 and has provided high quality expert advice and support to the NCP. Nevertheless, the Government believes that it is appropriate to undertake a light touch review of the composition and functions of the Board in light of experience. The UK NCP is also scheduled to undergo a peer review by the OECD during the second half of 2018, which will consider the effectiveness of the NCP’s structure and procedures.

Steering Board members, together with key stakeholder groups, including business and civil society, will be consulted as part of our review process. It is expected that the review will be completed in time to enable a new Steering Board to be appointed when the term of the current members expires in September 2017.

The UK Government recognises its commitments under the OECD Multi-National Enterprise Guidelines and maintaining a National Contact Point (NCP) which operates in line with international best practice. The NCP Steering Board contributes to this by oversight and monitoring of the effectiveness of the operation of the NCP, ensuring correct and fair procedures are followed in line with the established and published procedures for dealing with complaints.

The Steering Board was established in 2007 and has provided high quality expert advice and support to the NCP. Nevertheless, the Government believes that it is appropriate to undertake a light touch review of the composition and functions of the Board in light of experience. The UK NCP is also scheduled to undergo a peer review by the OECD during the second half of 2018, which will consider the effectiveness of the NCP’s structure and procedures.

Steering Board members, together with key stakeholder groups, including business and civil society, will be consulted as part of our review process. It is expected that the review will be completed in time to enable a new Steering Board to be appointed when the term of the current members expires in September 2017.

The UK Government recognises its commitments under the OECD Multi-National Enterprise Guidelines and maintaining a National Contact Point (NCP) which operates in line with international best practice. The NCP Steering Board contributes to this by oversight and monitoring of the effectiveness of the operation of the NCP, ensuring correct and fair procedures are followed in line with the established and published procedures for dealing with complaints.

The Steering Board was established in 2007 and has provided high quality expert advice and support to the NCP. Nevertheless, the Government believes that it is appropriate to undertake a light touch review of the composition and functions of the Board in light of experience. The UK NCP is also scheduled to undergo a peer review by the OECD during the second half of 2018, which will consider the effectiveness of the NCP’s structure and procedures.

Steering Board members, together with key stakeholder groups, including business and civil society, will be consulted as part of our review process. It is expected that the review will be completed in time to enable a new Steering Board to be appointed when the term of the current members expires in September 2017.