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Energy Bill [HL]

Perhaps I could intervene as well at this point. This illustrates the classic difficulty of legislating in a way that is dependent on regulations, which we cannot possibly see at this stage. A critical issue is whether the Green Deal has a fixed rate of interest. Each individual deal must be based on a fixed interest. If the system fails to have a fixed rate of interest, a deal may show a clear saving when it is begun—particularly because interest rates are low and one could probably get financing for this sort of thing at 3 or 4 per cent—but, if interest rates rise to 5 per cent and the borrowing rate goes up to 8 per cent, that could completely take out the effect of the savings over a period of time. There is a real issue, which comes back to the fact that we are, as with all legislation of this sort, flying blind. We need to think seriously about interest rates. If the deals vary with interest rates, their attractiveness will be considerably eroded.