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Energy Bill

Yes. The noble Lord will recall that we spent many long hours on the passage of the Energy Bill 2004. As he identified, there was considerable debate about the now Section 172. The Government accepted the need for it, despite knowing that the European directive would need implementation shortly afterwards. Of course, the intention of removing Section 172 is not in any way, shape or form to dilute the Government’s obligation to report on the security of energy supply. We merely seek to simplify and streamline the statutory reporting requirements. There have been a number of developments since Section 172 was created. First, we are now required by Article 5 of the EU gas internal market directive and Article 4 of the EU electricity internal market directive to monitor gas and electricity security of supply issues and publish reports. These reports are required annually for gas, and every two years for electricity. The Section 172 requirement largely duplicates this EU requirement, and we consider it to be overtaken; we are not in any way, shape or form diluting the obligation. We are pleased to see this amendment, because it demonstrates that the information now provided in the Energy Markets Outlook and to other sources is of great interest, relevance and importance to the industry. We are well aware of the industry’s anxieties in these areas, which the noble Lord has reflected. I reassure the Committee that we intend to continue to fulfil the requirement of reporting. Our intention with this clause is simply to streamline statutory reporting requirements, removing unnecessary duplication and creating a framework for reporting that is less prescriptive and more responsive to need. Although I do not think that we need a Section 172 of the Energy Act, I have listened to what the noble Lord has said this afternoon with the greatest care. In view of the strength of feeling with which he backed his amendment—and we are aware of concerns in the industry that a statutory requirement should remain—I am prepared to take this amendment away and consider it further. He will recognise, therefore, that we are at one with him on the obligation. It is how we succeed in achieving that obligation that is important.