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Energy Bill

We are involved in substantial consultations on the process by which we adjust the arrangements for the grid and make changes. I emphasise to Members of the Committee that we are seeking some positives from the probing that the noble Lord has made today. We have ended the requirement for planning consent for microgeneration from April 2008. I know that he will regard that as a minor concession in comparison to what he seeks, but it is the intent of the Government to give the support that they can. The Committee will have been saddened by the noble Lord’s personal experience of his microgenerator, and I understand the issues with regard to costs and the restrictions on access to the grid. However, there is no doubt that we are taking steps to improve the position as regards microgenerators and that the current system provides disadvantages for smaller players. The noble Lord gave his personal experience. That is why we have set out to level the playing field for the distribution of energy. The measures set out in our recent consultation will reduce a whole range of these burdens, as experienced by the noble Lord. A report setting out the measures, which responds to all these issues, was published only a few days ago. I want the noble Lord to be clear that we are taking the necessary steps to ease the problems of microgenerators and access to the grid. The rather global sweep of the amendment is not well timed and, at this stage, we are not in a position to accept it. We certainly are considering reforms to grid access, which would ensure that the regulatory framework remains fit for purpose in the medium and the long term. That will condition the way in which we are able to respond to the European directive. It is clear from this work that there are ways in which we could significantly improve the connection opportunities for renewable generation. We will set out this analysis when the final report of the review is published this week. The Government are well charged of the issues which the noble Lord raised on access of minor generation, but I also indicate to him, as did the noble Lord, Lord Jenkin, in his contribution, that there are strategic aspects to which we must have regard. It is certainly clear that the growth in intermittent renewable generation will require us to have a serious examination of access to the grid, which is why we are involved in these consultations. Grid capacity needs to be shared between different forms of generation, but no one in the Committee will underestimate the complexities of these matters against a background where the Government are bound to have as their priority security of provision. On the second part of the new clause proposed in the noble Lord’s amendment, I do not want to return to that intensive debate that we had on biomethane. I was grateful to the noble Lord for truncating his contribution on that today, and I will follow suit. Until we have reviewed the evidence about the costs and processes involved in upgrading biogas to biomethane and injecting into the gas system, we will not be able to assess the potential unintended or undesirable consequences, or the balance between costs and benefits that might flow from any proposed change to access rules. The kind of market enablement provided by the amendment is somewhat premature. We have said on many occasions that we will do what we can—and we are steadily making progress—on support for renewables. But I hope that the noble Lord will recognise that the Government have a clear priority with regard to the grid and electricity, and it would be somewhat jumping the gun to introduce part of a European directive, which is not finalised at this stage, into our legislation at this point. That is a premature initiative, although the Government share with the noble Lord the broad objectives. The Government have to hit those targets, which we have all identified will involve considerable change to access to the grid.