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Climate Change and Sustainable Energy Bill

Fuel poverty is a crucial issue. In the context of the Bill, one of the issues that I wish to explore in detail over the coming months is how best to use micro-power to help to address the fuel poverty agenda. They are often seen as different subjects, but I do not think that they should be. We have heard about areas that may be off the gas mains and having to pay higher costs. We need to explore further how micro-generation and energy efficiency can play a part. I am rather with the thrust of the hon. Gentleman’s comments. Clause 7 gives the Secretary of State a duty to establish a scheme enabling the sale of electricity by domestic micro-generators. Such a scheme could then require electricity suppliers to buy at the market rate the electricity produced by their domestic customers by micro-generation. Micro-generators can already sell their electricity, so legislation is not required to achieve this. To require suppliers to buy that electricity at the market price risks distorting the electricity supply market and would be incompatible with our liberalised arrangements. This Government would like more suppliers to engage in the market for this exported electricity, perhaps through an obligation on them to offer terms, in a manner similar to their obligation to offer terms for supplying electricity to householders. So we are looking at this issue and I am anxious to make some progress on it, but I am unable to accept the clause as drafted. Clause 8 appears to put a duty on any public authority, including Ofgem, to have regard to the needs of micro-generators when carrying out any function relating to various green energy certificates. I have some concerns about imposing a specific duty on Ofgem in respect of micro-generation. It already has a clear set of duties that govern its work, including a duty to contribute to sustainable development. A requirement to have specific regard to the needs of micro-generators would inappropriately skew its focus toward this still relatively small section of the energy market. But the Government support the general thrust of this clause, in so far as it would encourage actions that help micro-generators to gain access to the benefits associated with green certificates, such as renewable obligation and levy exemption certificates.