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Energy Bill [HL]

My Lords, Amendments 41 and 42 are a straightforward extension of the existing disclosure and acknowledgement provisions to ensure that all relevant circumstances are captured. The principle behind Clauses 12 and 13 is that those taking on responsibility for repayment of the Green Deal should have the presence of the charge disclosed to them, and acknowledge that they are aware of it. After further consideration, we have concluded that additional powers are needed so that we can require disclosure and acknowledgment in circumstances that do not fall within Clauses 12 and 13. As drafted, Clauses 12 and 13 rely on there being a relevant property transaction for the sale, rent or licensing of a property to trigger the obligations to disclose and acknowledge. However, the provisions will not cover all circumstances—something that was flagged up in Committee—such as where a property is transferred by executors to a beneficiary under a will, or when a property is given by one person to another. The new owner ought to be made aware of the Green Deal, and this is the purpose of the amendment. Robust disclosure and acknowledgement requirements protect individuals and businesses by ensuring they know they are taking on a Green Deal plan when they choose to move into a property. This helps to minimise the number of disputed Green Deal plans, which means that payments are maintained and the cost of finance is kept as low as possible. We will work with stakeholders on how these new provisions will apply in practice. Our aim is to use existing systems where possible, and we will consult before setting out these arrangements in regulations. Amendments 43 to 45 enable the sanctions contemplated by Clause 14 to apply to those other circumstances or other transactions where disclosure and acknowledgment may be required under the new provisions. Amendments 59 to 61, 171, 173 and 175 deal with consequential issues such as parliamentary procedure, extent and commencement elsewhere in the Bill. In conclusion, I can assure noble Lords that these powers are necessary and proportionate to protect the consumer and to ensure the effective operation of the Green Deal. Furthermore, I would be grateful if noble Lords could note the Government’s intention to introduce, in the other place, a further amendment relevant to consumer protection under the Green Deal. This future amendment will propose that, in certain exceptional circumstances such as particularly long Green Deals, Green Deal providers will be able to recover more compensation from bill payers when a Green Deal is repaid early than is currently permitted under the Consumer Credit Act. Where extra compensation is recoverable, this will be within the limits set by the consumer credit directive. Without such a measure the cost of finance is likely to be increased, thus driving up costs for all Green Deal consumers. I am highlighting the future introduction of this amendment now to reflect noble Lords’ close interest in consumer protection matters—something that has also been flagged up today—which are an issue of utmost importance to the Government in the development of this legislation. We propose to introduce such an amendment in the other place to allow further time to ensure that, in making this change to the Consumer Credit Act, we are able properly to balance the interests of Green Deal providers with the protection of consumers, which is so important within the Green Deal scheme. I beg to move.