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Planning and Energy Bill

This is a serious problem. I can understand why the word ““local”” is used in this context, because a development on a local authority boundary could want energy supplies from the neighbouring council's area, just over the frontier. If one referred to a ““local authority area”” in that context, that might not achieve the intended objective. On the other hand, the problem with defining the word ““local”” is that it is the same as asking, ““How long is a piece of string?”” It makes things difficult. I have used the words ““local supplies”” in new clause 7 to mirror the construction of clause 1. The definition is vague and ought to be considered when the Bill goes elsewhere, assuming that it does. My hon. Friend the Minister might be aware that I tabled amendments to try to flush out the problem by deleting those words, but they were unfortunately not selected for debate, so I am a little constrained in how far I can argue that particular point. He has highlighted a problem with the Bill, but as those amendments were not selected we will not be able to debate it at length today. What do we mean by local supplies? In general, if we are talking about renewable energy across the board, all council areas have access to renewable energy if they agree to sign up to a green tariff with an energy company and are prepared to pay for it. The cost is not cheap, although it obviously depends on the supplier. If a local authority wanted to go into microgeneration and supply its own energy, it could build a small microgenerating power station, for example for a housing estate. I have already mentioned the tiny one that has been built by a school in my constituency. Such a development could provide heat and light for homes in the local area. Indeed, any excess could be sold back to the energy companies or the national grid. There are examples of good practice where that has happened. The real problem with the Bill is that we do not know what local means in this context. The Government have set a target of generating 10 per cent. of all electricity from renewable sources by 2010, mainly by requiring the electricity companies to provide for green energy generation. As we know, progress has been slow compared with what we would all like to see. Some local authorities have been doing the work themselves, and a trawl through the internet has produced some interesting examples. Woking council—I am not making a party political point—proclaims itself as the market leader in this respect. Its website talks about local sustainable energy systems, and its approach is"““to supply customers on private wire combined heat and power (CHP) networks as well as implementing energy and environmental services in both the public and private sectors””," working in"““partnership with the private sector””." The council claims to be the first UK authority to have adopted a comprehensive climate change strategy. I am sure that many others would argue the toss about that. Ultimately, the proof is in the pudding. The Nottingham declaration involved a number of local authorities that came together in partnership to decide how best to support one other in taking action to adapt to the impact of climate change and reduce carbon emissions. Some 200 local authorities signed the Nottingham declaration, but signing a declaration is not the same as doing something, which is why new clause 7 is important. It would achieve something. In London, through the London Development Agency, we have seen progress through the setting up of the London Climate Change Agency, which is a municipal company owned by the LDA. Until the last election, it was chaired by the Mayor. Whether the new Mayor will decide to chair the agency along with the Metropolitan Police Authority, alongside all the other things he intends to do, remains to be seen. Obviously, that will be a test of his commitment to these issues—but I digress. The LCCA has set up a joint venture energy services company or ESCO to develop decentralised energy schemes for London. It designs, finances, builds, owns and operates local decentralised energy systems for new and existing development. It was established as a private limited company. The LCCA has a 19 per cent. shareholding while EDF, the commercial partner, owns 81 per cent. That is a way in which a local authority can do something about the need to improve on renewables and to look at the local production of energy. The fact remains that when we talk about green electricity, so long as the premium is paid there should be no limit for domestic use. The fact is that it is more expensive. The data on installations in social housing put the costs of solar water heaters, for example, at £600 per dwelling. It can be quite an expensive operation. In new clause 7, I am questioning the meaning of clause 1. In practice, green energy will come from the power companies through the grid. It is unlikely to be produced locally except through microgeneration schemes. Whether a microgeneration scheme will produce enough electricity beyond the immediate requirements of the people who have installed it is another matter altogether.