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Energy Bill

My Lords, I thank the Minister for introducing this Bill. As far as it goes, we welcome it. Most of what is in the Bill is long overdue and I do not think that it would have caused us too much trouble even if we were to have had sufficient time to discuss it in detail in Committee. I am naturally pleased to see the two meaningful concessions that were extracted from the Government in another place by my honourable friends Greg Clark and Charles Hendry. What would have engaged our interest in this Bill is what is not included. This is a common complaint against Labour’s energy policy. It took years before Labour faced up to the energy crisis that was developing under it and even now it is proceeding too timidly to address the issue successfully. It is no surprise that, at Second Reading in another place, the debate barely touched on what was in the Bill and instead involved Labour Back-Benchers quizzing my honourable friends on the Conservative energy policy. I am glad to say to any noble Lords in this House who share that interest that we recently published a strategy paper and a detailed Green Paper setting out the urgent actions that we would implement if we were fortunate enough to win in the imminent election. Unfortunately, there is a complete lack of any corresponding policy from the Front Bench opposite. As far as I can see, Labour’s energy policy has, over the years, moved from lack of interest to outright denial and, finally, in the past couple of years, to the sort of dithering that we have come to expect when major decisions have become unavoidable. It is clear that our country and our people, especially the disadvantaged, have been failed by Labour over energy, according to its own targets. The most vulnerable people are being expected to wait even longer to hear how Labour would ensure that they will be able to afford to heat their homes. Our businesses, too, which are already suffering from a great recession because of the mismanagement of the economy, are given nothing to indicate under what conditions they are expected to make the necessary long-term investment. The City hesitates because this Bill gives no certainty to anyone. However, finally we have some measures before us that allow for the subsidy of carbon capture and storage. That is to be welcomed, but there is no detail on how the levy will be imposed and no criteria for how the money will be spent. This Government, who have accepted, at the final hour, that CCS needs some sort of government subsidy, appear determined to leave all questions on the subject to be answered by the next Government. Noble Lords may rest assured that, if the next Government are Conservative, it will not be long before those questions are answered. Within six months, we will set out how the EPS will be introduced. Without such a standard, the money raised by this levy could be frittered away with no result, as the Government have done with the revenue from the EU Emissions Trading Scheme instead of contributing to a secure, sustainable energy supply. On energy security, the Government, despite the Minister’s valiant recent efforts in the still relatively new department of DECC, which brought him and me together, have again failed to come forward with what is needed. There is nothing in the Bill about gas storage, despite Labour’s acknowledgment that we have totally inadequate facilities for this country’s needs. On fuel poverty, we have the same inadequate provisions. Of course, we welcome what is here, in Part 2 of the Bill. Given that the Government have failed to meet their own targets on fuel poverty, these clauses are now very necessary, but it is disappointing that, despite a few recent indications that Labour is finally starting to listen to us on the importance of energy efficiency, there is nothing to introduce a genuine green deal for households. The Government’s plans for a pilot scheme covering 500 households are pitiful in comparison to the promises that we have made in this area in our document, which I hope all noble Lords will read. Indeed, the Bill says very little about the day-to-day experience of the consumer. The Government conceded a point in another place about information on pricing changes. However, without the necessary detail in Part 1 about whom the levy will be imposed on and without a genuine engagement with households in Part 2 on how to reduce and manage their energy requirements, consumers appear to be left holding all the costs of the necessary investment with no guarantees regarding the benefits that they might expect to receive. Much of the public’s scepticism about green investment could be addressed with proper transparency around energy pricing and subsidy. When newspapers report the record profits made by energy suppliers while households struggle to meet their bills, it is critical that every household can feel confident that it is, at least, on the most appropriate tariff for its needs. With the baffling complexity of Labour’s subsidy mechanisms causing problems even for the experts, the consumer must be informed of the amount of money that he or she is paying into this sector. It is understandable why Labour is so hesitant to introduce such transparency. It has achieved so little in its time in government that there would be a public outcry if it were better appreciated how much taxpayer money has been wasted. Labour refuses to commit to an emissions performance standard, making it uncertain that investment will bear any better results in the future and, unsurprisingly, it refuses to give consumers the necessary means to see the consequences themselves. As far as the Bill goes, we welcome it, as what is in it is long overdue. However, so little will be achieved through it that it is obvious that it will be the new Government to whom we must look to do the rest for a secure energy future, for our industry and for our national security.