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Energy Bill

My Lords, I am grateful to my noble friends on the Front Bench for encouraging me to join them in contributing to this debate in order to reinforce the connection with the Climate Change Bill. As the Minister pointed out in his introduction, this Bill is linked both with the Climate Change Bill, which has gone on its way, and the Planning Bill which has yet to come. It also has links, particularly in the field of fuel poverty, with the Housing and Regeneration Bill and, as has been pointed out, with the forthcoming Marine Bill. They share a common agenda and I hope that, as the Bill proceeds through this House, every opportunity will be taken to make clear the obligation this Bill owes to the carbon reduction targets and our climate change targets. I was one of many noble Lords determined to drive the idea of climate change across departments as a necessity, as the noble Lord, Lord Oxburgh, so powerfully pointed out. Much of what has been presented in the Bill is uncontroversial and, notwithstanding the critique of the noble Lord, Lord Whitty, there has been a general and widespread sympathetic voice across the House during this debate. What, however, have been voiced are widespread concerns at the missing links—those energy-related measures which could, should and will, I expect, if this House has its way, be included in this Bill. The Bill has been long awaited. It comes after much dithering and delay. Of course energy policy has involved difficult decisions, but the Minister knows all about difficult decisions. He comes from business and successful business is dependent on making difficult decisions. I hope that he will bring his decision-making skills to government, who certainly need it. In this matter, time is of the essence, and big decisions will need to be made and made quickly. Fuel security requires that we construct gas storage. As the noble Lord, Lord Oxburgh, has pointed out, carbon capture and storage is also a prerequisite. On the particulars in the Bill—the licensing procedures and the reporting requirements—I hope that these matters will be addressed in detail in Committee. Underlying Chapter 3 is the acknowledgement that for us to begin undersea carbon storage, there will have to be amendments to existing EU directives. Can the Minister explain what these are, how far discussions have progressed and what remains to be agreed? What linkage exists within the EU jurisdiction on marine matters beyond the six-mile line, the use of submarine storage in general and offshore transmission in particular? I expect many noble Lords will want to be involved in discussions on renewables. Many different aspects have been raised. Wind power generation has been by far the most visible constituent of the programme to date. But co-firing is another key element. However, we see Cinderella is at the ball and if we are to have the decentralised energy policy, we need to look at photovoltaic solar power, wave power and tidal power. Will the variability in funding, to which the Minister referred, be used to encourage investment in these areas? Part 2 on renewable obligation certificates will no doubt cause its fair share of amendments, probing or otherwise. But at this stage I have only one question for the Minister. What sort of specified case—under Clause 37, which inserts new Section 32C in the Electricity Act 1989—might be wholly or partially free of the requirement for such a certificate? Like many noble Lords, I look forward to hearing the Government’s objections to a feeder tariff—the renewable energy tariff. The noble Lord, Lord Oxburgh, expressed the view that it was much more effective than the ROCs. The Minister needs to be aware, as he surely must be, that there is widespread support for such a concept—not just at the 50 kilowatt microgeneration level, but for a higher level—if we are to encourage investment in this important area. So far I have focused, as does the Bill, on energy producers. The greatest missing ingredient is the consumer. The government amendment at Third Reading in another place has provided for the introduction of smart meters, albeit without the direct enthusiasm that their introduction requires. Like the noble Lord, Lord Redesdale, I am seeking a timeframe for their universal introduction to all Britain’s 45 million households. Will the Minister confirm that the mandate for the introduction of smart meters, for which industry has been pressing, will form part of this Bill? One of the biggest reasons for the use of smart meters is to address fuel poverty. The right reverend Prelate the Bishop of Chester, and the noble Lords, Lord Palmer and Lord Whitty, also spoke on this issue. Many noble Lords have expressed concerns. The House has heard the passion and determination with which my noble friend Lord Jenkin has pursued the issue of the supplier obligations in this matter. The Bill is silent on the social tariff. It fails to address the inconsistent way in which those who have to use a prepayment meter pay more for heat, light and energy, which cannot be right. This is a useful Bill, but it is surely waiting to be improved. I expect noble Lords will seek to do that and I hope that the Minister will encourage them in that objective.