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Energy Bill

This group of amendments covers a large group of areas that the Bill addresses, including: the duties of Ofgem and the related issue of access to the transmission grid for new electricity generation projects, including renewables; the ability of distribution network operators to recover the costs associated with making offers of connection to new developments; and ensuring consistency between the Bill and the existing statutory framework for energy policy. Let me deal with this group of quite complex but important amendments. We have had a lot of debate about Ofgem and its powers during the passage of the Bill. A number of concerns have been raised, centring on the need to give sustainability greater priority in Ofgem's statutory duties and the need to address the problems of strategic investment in the electricity transmission grid in the medium and longer term, and access to the existing grid in the shorter term. After the determination shown on the subject by Members of both Houses, we brought forward a package of amendments in the other place that we believe will address those key concerns. The first element of our proposals, in Lords amendments Nos. 54, 95, 96 and 104, is to change the Secretary of State's and Ofgem's duties in two ways. The first is by placing the words ““existing and future consumers”” directly into the wording of the primary duty. In the other place, the Government were persuaded by arguments that placing such a formulation of words directly into Ofgem's primary duty would be a clear signal from Parliament that it must take the needs of tomorrow's consumers into account when making decisions today. It is a key signal about the importance of sustainability in decision making. The second change to the duties was made in response to those who wanted the Government to find a way to put consideration of sustainability on to an equal level with security of supply.