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Energy Bill

My Lords, let me start by commenting on EDF. I have nothing to add to what I said in the House last week when we debated this. The European Commission will investigate the EDF takeover of British Energy. That investigation will take account of the impact of the transaction on the UK market, including many of the points raised today. The EC will also consult Ofgem and the Office of Fair Trading as part of its investigation. The Government have agreed with EDF that the company will sell land to other potential nuclear operators at some specific sites in certain circumstances. We hope to accelerate development of new nuclear power stations in the UK by making desirable sites available to at least one further potential operator. I understand from my officials that there is considerable interest among other potential operators in those sites and that opportunity. The Government have been extremely active in urging liberalisation within the EU. It is fair to say that the third package of internal market legislation will bring about a real improvement in the way that energy markets operate across the EU. It will make EU energy markets more transparent and competitive and create opportunities for UK companies to invest and compete in those markets. We are making some progress in that area, which I believe is fundamental to ensuring security of supply. Equally, we should welcome foreign investment in the UK. If a company is prepared to invest huge sums of money in the UK, surely that is a mark of confidence in the UK that we should welcome. We do not need the amendment. We already have robust, independent authorities able to investigate and inquire into competition in energy markets. I said in response to my noble friend Lord Puttnam that we have the intervention powers that we require under the Enterprise Act. I have made clear that, in the interests of transparency, the OFT guidance will be amended to ensure that Ofgem’s views are considered and made available. We expect Ofgem, the Office of Fair Trading and industry to contribute to any competition scrutiny. We expect them to take an objective view of the implications of the proposal for competition in any affected markets in future. We have the right structure to enable the competition authorities to intervene and take a view. We have the intervention powers of the Secretary of State under the Enterprise Act. On nuclear power, I have said that we have the opportunity to make sites available to other companies. I end with the conclusion that the very fact that this country is attractive to foreign investors is a mark of confidence in the UK and in the stability of our arrangements, which I am confident will play an important role in ensuring the long-term energy supply which all noble Lords want.