Energy Bill [ Lords ] (Eighteenth sitting)

(Limited Text - Ministerial Extracts only)

Committee stage
Thursday 29th June 2023 Public Bill Committees

[Olivia Blake (Sheffield, Hallam) (Lab)]

I beg to move, That the clause be read a Second time.

It is a pleasure to serve under your chairship, Mr Sharma. It is the first time, I think, that we have been in the room together for this Bill. New clause 86 requests that the UK Government commence withdrawal from the outdated investment provisions of the energy charter treaty, which risk undermining our Climate Change Act 2008 targets, internationally agreed emissions reductions and duties in this Bill in respect of the impact of energy production on habitats, species and the climate.

As many Committee members are aware, the energy charter treaty is an investment agreement between 50 countries for the energy sector. The investor-state dispute settlement mechanism in the treaty allows foreign companies to sue Governments outside the national legal system in somewhat secretive tribunals. The amounts at stake can be in the billions, and the ECT has already generated at least 135 claims, making it the world’s most litigated ISDS agreement. In the most recent Intergovernmental Panel on Climate Change report, UN climate scientists warned of the risk that ISDS agreements are

“able to be used by fossil-fuel companies to block national legislation aimed at phasing out the use of their assets”.

The report even name-checked the energy charter treaty, yet the UK continues to be party to it.

The treat is not just a potential risk. There have already been several high-profile cases of fossil fuel companies suing Governments through the treaty. For example, German energy giant RWE is suing the Netherlands for €1.4 billion over its coal phase-out. The UK oil company Rockhopper won a case this summer against Italy over a ban on offshore oil drilling. It won more than £210 million—more than six times what it had spent on the project. UK fracking firm Ascent Resources launched legal action against Slovenia over requirements for an environmental impact assessment, which is quite a benign ask of any project. It has also launched legal action over Slovenia’s subsequent ban on fracking, introduced by its Parliament, and that case is still pending.

The energy charter treaty poses a huge threat to climate action. As states take the necessary steps to phase out or phase down fossil fuels, more and more fossil fuel giants will turn to such mechanisms to sue Governments. It has been estimated that if the UK Government follow the International Energy Agency’s recommended pathway and cancel oil and gas projects that are in the pipeline, they could face claims of up to £9.4 billion from the ECT alone.

Globally, there is a risk of up to $111.5 billion in claims, but that is clearly not the only risk. The most recent IPCC report warns that there is a risk of regulatory chill from investment agreements, and again it particularly highlights the ECT. The fear of being sued is causing Governments to delay or decide against taking the necessary action on climate. Last year, two countries acknowledged that that is already happening.

Countries across Europe are seeing the risks for what they are and are already taking action. Towards the end of 2022, there was a cascade of announcements from countries planning to exit the ECT. Germany, France, the Netherlands, Spain, Poland, Slovenia, Luxembourg and Denmark all said that they are leaving, and Italy has already left. The European Parliament has voted for a co-ordinated withdrawal of all EU countries, and the European Commission is now recommending that as well, because reform of the treaty has not worked and will not work. Current proposals for modernising the treaty are weak and do not have the support of many countries. They will mean that existing fossil fuel projects will remain protected for at least 10 years, and that some gas projects will be protected until 2040. Projects that have just been given new or extended licences, such as the Cambo oilfield, will be protected and all existing projects can still continue.

Reform has ultimately been a failure, and exiting the treaty is now the only option. Germany, France, the Netherlands, Spain and Slovenia have all referred to the incompatibility of the ECT with the Paris climate agreement and climate goals, and the EU Council recently decided that it will not support reform. If countries exiting the ECT do so in co-ordination, as seems to be happening, they could agree between each other not to apply the 20-year sunset clause, as has been suggested by several countries that are leaving.

In June, the Energy Minister at the time, the right hon. Member for Chelsea and Fulham (Greg Hands), said:

“The UK cannot support an outdated treaty which holds back investment in clean energy and puts British taxpayers at increased risk from costly legal challenges.”

That was stated in a press release on 24 June 2022. Back then, the Government wanted to put their trust in the reform proposals to fix the problem, but we have since seen country after country doing its own assessment and concluding that reform is not possible or has failed.

If the UK does not step up and become part of the vanguard for exiting the ECT, it could be left behind in an obsolete and collapsing treaty, bearing all the risks while others move on. Put simply, while we are still members of the ECT we will not be able to achieve the aims of the Bill and meet our net zero obligations without facing huge costs from the agreement. A co-ordinated withdrawal is the most effective way to protect taxpayers’ money, the planet and our future from this damaging treaty, and I urge the Minister to have a rethink.

I will not push this probing new clause to a vote, but I hope that it will allow the Minister the opportunity to set out the Government’s position on this very important issue. It is right that it is considered in this debate, but I accept that I probably will not get the support of Government Members in a vote.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

It is a pleasure to serve under your chairmanship, Mr Sharma, on the last morning that we gather together in this room to debate the Bill. I thank the hon. Member for Sheffield, Hallam for tabling her important new clause, which relates to an issue that I addressed in a Westminster Hall debate not that long ago.

The UK is committed to addressing the urgent need for climate action at home and abroad through our ambitious net zero targets and international commitments. The new clause would initiate procedures for the United Kingdom to withdraw from the energy charter treaty. His Majesty’s Government completely recognise that the treaty needs to be updated to reflect the current energy landscape, which is why we worked hard for two years at negotiating to modernise it; hence, the comments to which the hon. Lady referred—by the former Energy Minister, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands)—were absolutely correct.

We wanted to bring the treaty into line with modern energy priorities, international treaty practice and international commitments on climate change. Unfortunately, the European Union and its member states were unable to endorse the adoption of modernisation at the energy charter conference. Yes, the European Parliament has voted to update the treaty, and the European Commission is advising that member states or the organisation withdraw, but the EU Council was unable to reach an agreement on modernisation, which is why we are where we are today.

Since the energy charter conference, we have engaged with stakeholders across business, civil society and Parliament, and we are carefully monitoring the positions of the other contracting parties—including the countries to which the hon. Lady referred—and the EU, in relation to the adoption of modernisation. In a context that continues to develop near weekly, we are carefully assessing how to take forward our priorities in relation to the treaty, but we cannot accept the new clause, which would require the UK to initiate procedures to withdraw. As I said, we will carefully consider where we stand.

The new clause would also require the Government to lay before Parliament a report detailing UK investment treaties covering the energy sector and the risks that they pose to the Secretary of State fulfilling their duties under the Climate Change Act. The UK has investment agreements with around 90 trading partners, and the agreements are the responsibility of the Department for Business and Trade. The Government’s right to regulate in the public interest, including in areas such as the environment and labour standards, is recognised in international law, and the Government are clear that when negotiating trade and investment agreements we will continue to protect our right to regulate.

I hope that that provides the hon. Member for Sheffield, Hallam with the reassurance she needs, and I humbly ask that she consider withdrawing her new clause.

[Olivia Blake]

I thank the Minister for his response. He will not be surprised that I am not satisfied with it, but I will not press the new clause to a vote. There are many risks in this area. Other countries have already taken the lead, and we are being left behind, which exposes us to a higher level of risk. I hope that the Minister will not only continue to consider the modernisation of the ECT but consider withdrawing from it. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 87

Government support for community energy

“(1) Within three months of the passage of this Act, the Secretary of State must publish and lay before Parliament a report setting out the financial, policy and other support that the Secretary of State plans to make available to widen the ownership of low carbon and renewable energy schemes and increase the number of such schemes owned, or part owned, by community organisations.

(2) The report must set out—

(a) all policies, programmes or other initiatives with which the Secretary of State plans to support the development and construction of new low carbon community energy schemes;

(b) the level of financial support which will be made available for—

(i) the Rural Community Energy Fund,

(ii) the Urban Renewable Energy Fund, and

(iii) any other fund or support package designed to support the development of new low carbon community energy schemes;

(c) all policies, programmes or other initiatives the Secretary of State intends will increase community ownership of local low carbon energy schemes through shared ownership schemes;

(d) the steps the Secretary of State is taking to develop new market rules to make it easier for low carbon community energy schemes to sell the energy they generate;

(e) the number and the capacity of the new community energy schemes the Secretary of State expects to be constructed as a result of the measures set out in the report.

(3) Not less than twelve months after the publication of the report, and not later than the end of each subsequent period of twelve months, ending five years after the publication of the report, the Secretary of State must lay before Parliament and publish an assessment of the progress made by the policies, programmes and other initiatives set out in the report.

(4) The assessment must set out—

(a) the total amount of financial support provided by the policies in the report;

(b) the number and capacity of low carbon community energy schemes —

(i) completed, and

(ii) in development;

(c) the number and capacity of new shared ownership schemes;

(d) any changes the Secretary of State proposes to make to the policies, programmes and other initiatives included in the original report.”—(Olivia Blake.)

This new clause is intended to replace clauses 272 and 273, if those clauses are removed as indicated by Government Amendments 15 and 16. It would require the Government to report annually for 5 years on the support it is providing to Community Energy schemes and the number and capacity of such schemes that are delivered.

Brought up, and read the First time.

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[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Sharma. I want to say a few words in support of new clause 87. As the hon. Member for Sheffield, Hallam outlined, it is not even that onerous, as it is about reporting going forward, although I always find that clauses that require reporting still have the Government running a mile, because they do not like to commit to it.

Government Members voted to remove from the Bill clauses 272 and 273, which were in favour of community energy schemes and putting in place arrangements to procure them. The argument from the Minister was:

“Introducing a fixed price would be a step backwards, as it requires all energy consumers to pay more than the market price for electricity to subsidise local communities that benefit from community energy projects.”––[Official Report, Energy Public Bill Committee, 20 June 2023; c. 357.]

I do not think it is too onerous to ask all billpayers to help to subsidise a few community schemes. Will the Minister write to the Committee to outline what additional costs the Government think would go on to all billpayers’ bills if there was a fixed price guarantee for local energy schemes? It is really important that we understand what the Government think the extra costs would be for billpayers.

The Government happily tell us that the regulated asset base model in the Nuclear Energy (Financing) Act 2022 will add £10 to every single bill in the UK. If that is the case and it is okay for nuclear, why do they not look at what the costs and benefits overall for local community energy schemes would be? That is my main point.

Will the Minister also write to the Committee to outline the amount of community energy that has been deployed each year in the last decade? That will allow us to understand the trends and how easy it is for community energy schemes to access the grid and the system and whether there are any blockers.

Finally, perhaps the Minister does not need to write to us on this, but will he spell out what he thinks the flaws are now in the original Local Electricity Bill that he did not see at the time, when he signed up as a supporter and sponsor of the Bill? What are the defects, since he is now against such a concept?

[Andrew Bowie]

I thank hon. Members for their contributions, and especially the hon. Member for Sheffield, Hallam for tabling new clause 87, which seeks to create a new community energy strategy, to be followed up with annual reports to Parliament on progress for the sector. The Committee discussed community energy in great detail last week—and a very enjoyable debate it was too. I reassure the Committee that the Government are, as we speak, looking closely at this matter. I urge all Members to watch this space.

Nevertheless, I remind Members that the Government’s general approach to community energy is already laid out in the net zero strategy and the net zero growth plan. As such, we do not see any added value in mandating a dedicated community energy strategy or annual report in the manner set out in the new clause. Instead, we believe it is more beneficial to the community energy sector for the Government to continue our approach to help local authorities and community energy groups to work together to develop funding for projects across the net zero agenda, with funding from existing sources such as UK growth funding schemes.

For example, the UK shared prosperity fund provides £2.6 billion in funding for investment in places, including for community infrastructure projects. Ofgem supports community energy projects and welcomes applications to the industry voluntary redress scheme. Through our local net zero hubs, we are supporting local authorities and community energy groups to work together, including by funding a pilot programme that supports local authorities to develop community-led energy groups and projects.

The Government have also reintroduced the community energy contact group to strengthen our engagement with the sector. I have already outlined our arguments as to why the new clause would not be fair, so I am afraid that I cannot commit to writing to the Committee, as the hon. Member for Kilmarnock and Loudoun asks me to. In relation to why my own personal position may be now what it is, I have always been, and remain, committed to supporting community-led energy groups across the country. That is why we are working to implement schemes to support those projects across the entire UK. We will continue to do so, and I will be their biggest champion.

[Alan Brown]

It was positive to hear the Minister say, “Watch this space” because the Government are reviewing things. However, I reiterate my request that he writes to the Committee to outline what he thinks the costs will be. That must be a Government concern if they are considering how to provide further support to community energy schemes. That is a serious request—I am not trying to be awkward. Also, how much community energy is being deployed each year?

[Andrew Bowie]

I would be delighted to engage in further discussion with the hon. Gentleman and other interested hon. Members. I will commit to ongoing engagement, but we do not believe that the new clause provides any added value.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

The Minister said, “Watch this space”. It would be very helpful if he were to give us an outline of what the content of the space might actually look like.

[Andrew Bowie]

Far be it from me to spoil the enjoyment for hon. Members! I said this when we debated it last week, and I say it again: we continue to work on this. We continue to look at what more the Government can do to support community energy projects across the United Kingdom, and I will commit to provide an update on the next steps ahead of Report. I hope that is suitable for hon. Members. I do not believe that this new clause would add any value, so I encourage—indeed, I humbly beg—the hon. Member for Sheffield, Hallam to withdraw her new clause.

[Olivia Blake]

Beg the Minister might, but I will be pushing this new clause to a vote. The comments made by the SNP spokesperson, the hon. Member for Kilmarnock and Loudoun, and the Opposition spokesperson, my hon. Friend the Member for Southampton, Test, show why we are not completely confident that information from the Minister will be forthcoming, but I welcome his comments and his statement that he is currently looking at this and that there will be something ahead of Report. However, I truly feel that this new clause is the bare minimum requirement in this space, so we will push it to a vote.

Question put, That the clause be read a Second time.

Division 20

Ayes: 6

Noes: 8

New Clause 88

--- Later in debate ---

[Dr Whitehead]

I would agree if that were not my metaphorical way. Of course I do not believe that the former Secretary of State for Business, Energy and Industrial Strategy is going to take the Minister into a cupboard and do him over; it is a metaphor that I hoped might convey some of the possible lingering influence of the right hon. Member for North East Somerset on our present considerations. I am sure that the Minister will want to put that lingering influence out of his mind when considering what to do today.

After all the work that has been done on getting this clause back into the Bill, I confidently expect the Minister to greet it with acclamation. He does not have to do any work on it now, because it is ready to go. He can proceed with a Bill he can be proud of through its remaining stages in this House.

[Andrew Bowie]

For the record, let me make it absolutely clear that I have only the greatest respect for my right hon. Friend the Member for North East Somerset and that he has never expressed any desire to take me into a cupboard and, metaphorically or not, do me over. We enjoy a very good relationship. Although we disagree on some points of principle, we are broadly in agreement on the general direction of travel that is needed for the betterment of this country. I put on record my thanks for his service in supporting the Government in the various offices in which he served.

I also thank the hon. Member for Southampton, Test for tabling new clause 88. I note that it reflects the clauses that were in this Bill when it was first published in July last year, as he has pointed out. However, I am sure that it will not have escaped his notice that a great deal has happened to energy prices since then. Last September, the Government announced a massive package of support for consumers. As part of the work to deliver that package, the Domestic Gas and Electricity (Tariff Cap) Act 2018 was modified by the Energy Prices Act 2022, which received Royal Assent on 25 October.

Those modifications were made so that the tariff cap could function both as a cap to ensure that prices are efficient and as the reference price for the subsidy payments to households under the energy price guarantee. Although energy prices have now fallen below the level at which energy price guarantee payments are being made, it will remain in force until the end of March 2024 to protect households from price spikes. To ensure that the support rates under the energy price guarantee could be set and delivered effectively and quickly, the Energy Prices Act removed the requirement on Ofgem to carry out a review and to produce a report and recommendation to inform annual decisions by the Secretary of State on whether to extend the cap. As a result, there is now no automatic end date for the cap and the Secretary of State will give notice of when the tariff cap will end, but that does not change the fact that the tariff cap was always intended to be a temporary measure. It remains so, for now; as stated in the Government’s energy security plan, we intend to consult later this summer on the future of the price cap. In the light of my remarks, I hope that the hon. Member for Southampton, Test will feel that he can withdraw the new clause.

--- Later in debate ---

Division 21

Ayes: 6

Noes: 8

New Clause 89

--- Later in debate ---

[Dr Whitehead]

I beg to move, That the clause be read a Second time.

The Committee will be delighted to know that I do not intend to detain it for any length of time on the new clause, which follows on from our earlier debate about the setting up of the independent system operator.

We think something is missing from the otherwise pretty comprehensive and good arrangement for the setting up, organisation and running of the independent system operator, which we completely support; although we would like to see the independent system operator playing more of a system architect role than is presently envisaged, in general we are absolutely for setting up the ISOP in the way that has been described. What ought to follow is at least a consideration of whether the arrangements between the ISOP and the distributed network operators, on which we tabled some amendments at the time, are sufficiently robust to enable a system operator function to operate at all levels of grid delivery. As I said a little while ago, there are decreasing distinctions between the lower-level grid operated by the DNOs and the high-level grid, which is the function of the National Grid ESO at the moment.

The possibility arises that it will be possible—more than possible—to establish regional independent system operators to perform, in conjunction with the ISOP, the same sort of function that is presently envisaged for the ISOP itself. That would be a slightly different function, inasmuch as the regional system operators could be responsible for what is increasingly likely to happen with regional balancing, ancillary services and other such things that are part of the emerging structure of the grid as a whole, as we move from a centralised to a much more decentralised grid arrangement.

RISOs, as I call them, would be able to play a substantial role in that. All new clause 88 suggests is that the Secretary of State produce a report on the advisability of establishing regional independent system operators. I called them RISOs a moment ago, but RISOs are actually duplicating machines favoured by those with left-wing tendencies producing leaflets; these would be RISOPs, which could be established to provide that important link arrangement between the high-level grid and the low-level grid for the future.

That is all, really, as far as the new clause is concerned. It does not require anything earth-moving to take place in the immediate future—just consideration of this arrangement. It may well be that just by raising the matter I will have put the thought in the Secretary of State’s mind that maybe we should consider going in that direction; it is certainly a direction the Opposition would consider going in if our roles on these Benches were reversed. My purpose in tabling new clause 89 was to raise the issue and see what the Minister has to say about it; I certainly do not intend to press it to a vote.

[Andrew Bowie]

For the record, may I point out that it is not just leaflet publishers of left-wing tendencies who are au fait with risograph printers? I have spent many hours standing by a RISO producing leaflets for those of centre-right tendencies.

I may be wrong but, according to my notes, this is the last new clause or amendment the hon. Member for Southampton, Test will speak to, so I thank him and the shadow team for the very collegiate way in which they have proceeded through Committee stage. I look forward to engaging with the hon. Gentleman again on Report and Third Reading, and indeed in the interim, when I am sure we will be corresponding. I thank all hon. Members for their contributions thus far.

New clause 89 speaks to the creation of a new set of bodies to deliver regional system operation and planning, and in many ways repeats the intentions of amendment 97, which the hon. Member for Southampton, Test tabled. As with that amendment, the new clause creates powers relating to the operation of distribution systems.

Ofgem has recently consulted on the future of local energy institutions and governance, with a focus on the creation of regional system planners specifically. That consultation closed on 10 May, and I suggest that this new clause prejudges the outcome of that work.

Alongside Ofgem, the Government will carefully consider the proposals we are consulting on. If we then proposed legislative or licence changes that affected the relationship between the ISOP and distribution networks, any additional functions accruing to the ISOP would be covered by the wording in clause 119(2)(b) and clause 134(3)(a). That is because those clauses allow for other functions to be conferred on the ISOP under, or by virtue of, legislation other than part 4.

I hope that puts the mind of the hon. Member for Southampton, Test at ease and that he feels able to withdraw his new clause.

[Dr Whitehead]

I have no further comments to make, other than to thank the Minister for his comments. There are indeed consultations under way through Ofgem, and I look forward to seeing what those have to say. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 90

Objections by planning authorities to applications for consent under section 36 or 37 of the Electricity Act 1989

“(1) Schedule 8 to the Electricity Act 1989 is amended as follows.

(2) Omit paragraph 2.

(3) In the cross-heading before paragraph 3, omit ‘by other persons’.

(4) In paragraph 3, omit sub-sub-paragraph (2)(a).”—(Alan Brown.)

This new clause would remove the ability of a local planning authority automatically to cause a public inquiry to be held by objecting to an application to the Secretary of State for consent under section 36 or 37 of the Electricity Act 1989, instead leaving Ministers to decide whether a public inquiry should be held.

Brought up, and read the First time.

--- Later in debate ---

The Minister spoke about working collegiately with the shadow Minister, the hon. Member for Southampton, Test, and I hope I have been collegiate. I appreciate the ongoing discussions with the Scottish Government, because in this case it is about working together to achieve the best end.

[Andrew Bowie]

I thank the hon. Gentleman for his contributions on the new clauses. I have said in Committee, on the Floor of the House and elsewhere that this is the biggest challenge we face—connectivity and improving capacity in the grid—if we are to reach our targets, not just on our net zero commitments but in becoming more energy secure and delivering cheaper bills for the British people.

I recognise that the speed of electricity consenting in Scotland is critical to those aims and to the whole UK economy, as I have just suggested. It is important to enable rapid deployment of renewable energy generation and of the transmission lines needed to transport it to consumers across the country. With that goal in mind, we are aware that areas of the Scottish planning system need to be reviewed—specifically the ones that the hon. Member for Kilmarnock and Loudoun just mentioned—and we are committed to speeding up planning decisions across the UK wherever possible.

I am sure, however, that we are all in agreement—I know the hon. Gentleman is—that the issues are incredibly complex and multifaceted, and that any potential changes need to be carefully considered to ensure they are the right ones for consumers and the network. For example, as the Electricity Act 1989 applies to projects in England and Wales less than 132 kV and 2 km, and to all transmission projects in Scotland, we need to be certain that any amendments to the Bill would not have unintended consequences elsewhere. Moreover, we would not want to remove an automatic inquiry trigger without understanding what could replace that process.

The Government share the concerns of the hon. Member for Kilmarnock and Loudoun and we want to find a solution. I have had constructive discussion with the Energy Minister in the Scottish Government and within my Department on how to resolve this issue moving forward, but I am interested to meet the hon. Gentleman and anyone else he might suggest so that we can work together on a solution to this complicated issue. I therefore do not feel that we can accept his new clauses, and I would be grateful if he did not press them to a vote.

[Alan Brown]

I was shocked when the Minister said that he could not accept the new clauses—I did not see that coming! I am having to think on my feet, because I am completely thrown.

To make a serious point, I appreciate the Minister’s offer of a meeting, and I would like to take that up. I suggest that we have someone from the industry there as well. I am happy to work with the Minister to see how we can resolve the matter. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Schedule 1

Permitted disclosures of material obtained by OGA

“Disclosure by OGA to specified persons

1 (1) Section (Prohibition on disclosure) does not prohibit a disclosure of protected material by the OGA which—

(a) is made to a person mentioned in column 1 of the table below,

(b) is made for the purpose of facilitating the carrying out of that person’s functions, and

(c) is a disclosure of protected material obtained by the OGA under a provision mentioned in the corresponding entry of column 2 of the table.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 114, in clause 275, page 242, line 31, at end insert—

“(10A) The Secretary of State may not make regulations under this Act which would affect any matter within the competence of the Scottish Parliament unless the Secretary of State has first—

(a) consulted the Scottish Ministers on a draft of the regulations; and

(b) obtained the consent of the Scottish Parliament to the regulations.”

Clauses 275 to 277 stand part.

Government amendments 171, 172, 123, 133, 131 and 175.

Clause 278 stand part.

Government amendment 17.

Clause 279 stand part.

[Andrew Bowie]

I have just a 3,000-word speech—[Laughter.]

Government amendment 171 is consequential on the previously debated new clauses associated with providing powers to the Secretary of State to design and allocate a RAB as part of the hydrogen transport business model. It sets out that these new clauses come into force two months after Royal Assent.

Government amendment 172 is consequential on the previously debated Government new clause 72, associated with providing powers to the Secretary of State to modify the Gas Act 1986 in relation to hydrogen. It sets out that Government new clause 72 comes into force two months after Royal Assent.

Government amendments 123 and 133 are consequential and necessary to ensure that the previously debated Government new cause 52, on the Ofgem net zero duty, and new clauses 53 and 54, on energy-intensive industries, come into force two months after Royal Assent.

Government amendment 131, alongside Government new clause 55, which we have already discussed, will provide the Secretary of State with the power to make changes to the Nuclear Installations Act 1965 regarding the convention on supplementary compensation for nuclear damage and other relevant legislation, if required in the future. That would be by means of an order made through the affirmative procedure. This power will come into force two months after Royal Assent.

Government amendment 175 means that the new clauses relating to Great British Nuclear come into force two months after Royal Assent. Government amendment 17 removes the privilege amendment added to the Bill by the Lords. That is standard procedure.

Clauses 274 to 279 are general tidying-up provisions at the end of the Bill. Clause 274 provides the Secretary of State with a regulation-making power to make consequential amendments that arise from the Bill.

Clause 275 provides that regulations made under the Bill are to be made by statutory instrument. Clause 276 provides information on how terms that are used throughout the Bill should be interpreted in the Bill. Separate interpretation provisions are found in other parts of the Bill where those terms appear only in those parts.

Clause 277 sets out the territorial extent of provisions in the Bill. Clause 278 sets out when the provisions in the Bill come into force. Finally, clause 279 confirms the short title by which the Bill may be cited.

--- Later in debate ---

[Andrew Bowie]

I thank the hon. Member for Kilmarnock and Loudoun for amendment 114. I highlight the fact that the UK Government have worked closely and constructively with the devolved Governments during the preparation and passage of the Bill. As I have said already, I recently met the Scottish Minister for Energy and the Environment, Gillian Martin, to discuss the topic of this amendment. As I mentioned, the negotiations on the legislative consent motion are still ongoing, and I would not want to prejudge any of those discussions.

The Bill has been carefully designed to respect the devolution settlements. We have already included consultation requirements with the devolved Governments in areas where the Bill provides powers to make regulations in devolved areas, and we have offered to enhance them. Those requirements provide Scottish Ministers with appropriate opportunities to contribute to the development of regulations. Indeed, British Government officials regularly engage with their Scottish Government counterparts and share information on any upcoming UK Government secondary legislation that legislates on devolved matters in Scotland. We will, of course, continue to do so.

Amendment 114 would require consent from the Scottish Parliament for each regulation. I and the Government believe that imposing a blanket consent procedure and a lengthy process on future secondary legislation is unnecessary, creates additional administrative burdens and risks the making of future legislation. I hope that, with those comments, the hon. Gentleman will find it within himself to withdraw his amendment.

[Alan Brown]

I do not think it would be an unnecessary legislative burden, to be honest. If it is some simple process, consent will be equally simple to achieve, so I do not think it would unduly delay things or overcomplicate them. I will not press amendment 114, but I reserve the right to table it on Report, because I really want to ensure that things are resolved to the satisfaction of each side.

Question put and agreed to.

Clause 274 accordingly ordered to stand part of the Bill.

Clause 275

Regulations

Amendment made: 19, in clause 275, page 241, line 35, after “State” insert “, the Treasury”.—(Andrew Bowie.)

This amendment provides for regulations made by the Treasury to be made by statutory instrument. This will affect regulations under paragraph 9 of Schedule 7.

Clause 275, as amended, ordered to stand part of the Bill.

Clauses 276 ordered to stand part of the Bill.

Clause 277

Extent

Amendments made: 168, in clause 277, page 243, line 6, at end insert

“, except section (Power to modify Gas Act 1986 in relation to hydrogen)”.

This amendment is consequential on Amendment 170.

Amendment 169, in clause 277, page 243, line 16, at end insert—

“(aa) sections (Key definitions for Part), (Designation), (Designation: procedure), (Revocation of designation), (Grant, extension or restriction of gas transporter licence by Secretary of State), (Applications for grant etc of gas transporter licence), (Modification of gas transporter licence by Secretary of State), (Scope of modification powers under section (Modification of gas transporter licence by Secretary of State)), (Procedure etc relating to modifications under section (Modification of gas transporter licence by Secretary of State)), (Information and advice), (Conditions of gas transporter licences for conveyance of hydrogen), (Secretary of State directions to the GEMA) and (Repeal of Part);”.

This amendment provides for the new clauses that are intended to form a new Part inserted after Part 2 to extend to England and Wales and Scotland.

Amendment 170, in clause 277, page 243, line 17, at end insert—

“(ba) section (Power to modify Gas Act 1986 in relation to hydrogen);”.

This amendment provides for NC72 to extend to England and Wales and Scotland.

Amendment 174, in clause 277, page 243, line 22, at end insert—

“(h) sections (Great British Nuclear), (Crown status), (Great British Nuclear’s objects), (Financial assistance), (Secretary of State directions and guidance), (Annual report), (Annual accounts), (Transfer schemes), (Transfer schemes: compensation), (Transfer schemes: taxation), (Transfer schemes: provision of information or assistance), (Reimbursement and compensation in connection with designation) and (Pension arrangements in connection with Great British Nuclear);”.—(Andrew Bowie.)

This amendment means that the new clauses relating to Great British Nuclear extend to England and Wales and Scotland.

Clause 277, as amended, ordered to stand part of the Bill.

Clause 278

Commencement

Amendments made: 171, in clause 278, page 244, line 7, at end insert—

“(ba) sections (Key definitions for Part), (Designation), (Designation: procedure), (Revocation of designation), (Grant, extension or restriction of gas transporter licence by Secretary of State), (Applications for grant etc of gas transporter licence), (Modification of gas transporter licence by Secretary of State), (Scope of modification powers under section (Modification of gas transporter licence by Secretary of State)), (Procedure etc relating to modifications under section (Modification of gas transporter licence by Secretary of State)), (Information and advice), (Conditions of gas transporter licences for conveyance of hydrogen), (Secretary of State directions to the GEMA) and (Repeal of Part);”.

This amendment provides for the new clauses that are intended to form a new Part, to be inserted after Part 2, to come into force two months after Royal Assent.

Amendment 172, in clause 278, page 244, line 9, at end insert—

“(ea) section (Power to modify Gas Act 1986 in relation to hydrogen);”.

This amendment provides for NC72 to come into force two months after Royal Assent.

Amendment 123, in clause 278, page 244, line 10, at end insert—

“(ea) section (Principal objectives of Secretary of State and GEMA);”.

This amendment provides for NC52 to come into force two months after Royal Assent.

Amendment 133, in clause 278, page 244, line 12, at end insert—

“(ga) sections (Electricity support payments for energy-intensive industries) and (Levy to fund electricity support payments);”.

This amendment provides for NC53 and NC54 to come into force two months after Royal Assent.

Amendment 131, in clause 278, page 244, line 16, at end insert—

“(l) section (Convention on Supplementary Compensation for Nuclear Damage: implementation power).”.

This amendment provides for NC55 to come into force 2 months after Royal Assent.

Amendment 175, in clause 278, page 244, line 16, at end insert—

“(l) sections (Great British Nuclear), (Crown status), (Great British Nuclear’s objects), (Financial assistance), (Secretary of State directions and guidance), (Annual report), (Annual accounts), (Transfer schemes), (Transfer schemes: compensation), (Transfer schemes: taxation), (Transfer schemes: provision of information or assistance), (Reimbursement and compensation in connection with designation) and (Pension arrangements in connection with Great British Nuclear);”.—(Andrew Bowie.)

This amendment means that the new clauses relating to Great British Nuclear come into force 2 months after Royal Assent.

Clause 278, as amended, ordered to stand part of the Bill.

Clause 279

Short title

Amendment made: 17, in clause 279, page 244, line 29, leave out subsection (2).—(Andrew Bowie.)

This amendment removes the privilege amendment inserted by the Lords.

Clause 279, as amended, ordered to stand part of the Bill.

Title

[Andrew Bowie]

I beg to move amendment 11, in title, line 3, leave out “industrial”.

This amendment is consequential on Amendment 10.

[The Chair]

With this it will be convenient to discuss Government amendments 173 and 134.

[Andrew Bowie]

The amendments simply make changes to the Bill’s long title to reflect amendments made in Committee. The amendments reflect the introduction of measures on greenhouse gas removals, hydrogen transport and storage, and energy-intensive industries, and ensure that they are reflected in the Bill’s long title.

Amendment 11 agreed to.

Amendments made: 173, in title, line 4, after “production” insert “and transportation”.

This amendment makes a change to the long title to reflect NC59, NC60, NC61, NC62, NC63, NC64, NC65, NC66, NC67, NC68, NC70 and NC71 (which are intended to form a new Part to be inserted after Part 2).

Amendment 134, in title, line 7, after “codes;” insert—

“about financial support for persons carrying on energy-intensive activities;”.—(Andrew Bowie.)

This amendment is consequential on NC53 and NC54. It reflects those new clauses in the Bill’s long title.

Question proposed, That the Chair do report the Bill, as amended, to the House.

[Andrew Bowie]

Thank you, Mr Sharma, for your excellent chairing of the Committee this morning, and thank you to Mr Gray, Dr Huq and Ms Nokes for their equally excellent chairmanship over the course of the Committee.

I pay special tribute to the Clerks and to my officials for their tireless work on what is quite a hefty piece of legislation. I also thank Members on both sides of the Committee for the constructive, thoughtful and insightful debate on this landmark Bill. I have already thanked the shadow Minister, the hon. Member for Southampton, Test, for his overall support, and for our way of working in Committee, which has been collegiate and good mannered—well, not good mannered. [Interruption.] Bad mannered! [Laughter.] Although we have not agreed on every detail, I thank him for his knowledgeable contributions.

The Energy Bill will provide a clear, more affordable and more secure energy system. It will liberate private investment, including in technologies, reform our energy system so that it is fit for purpose, and ensure its safety, security and resilience. I look forward to working with everyone present to take the Bill through Report stage and on to Royal Assent.

[Dr Whitehead]

I associate myself with the Minister’s remarks concerning your excellent chairing, Mr Sharma, and that of your colleagues the hon. Member for North Wiltshire (James Gray), my hon. Friend the Member for Ealing Central and Acton (Dr Huq) and my constituency neighbour the right hon. Member for Romsey and Southampton North (Caroline Nokes). I hope that you can convey to them the thanks of all Committee members for their excellent work in bringing the Committee to its conclusion.

I also thank, beyond the normal level of thanks, the Committee Clerks, who have been of tremendous assistance to me in bringing forward the sinews for debate by way of the amendments and new clauses, all in perfect order and debated accordingly. In my relatively long experience of taking Bills through the House, their work has been way beyond the call of duty, for which I am very grateful to them.

I believe the Minister is the record holder of fastest House of Commons runner in the London marathon ever.

[Andrew Bowie]

No—just in one year, I am afraid.

[Dr Whitehead]

I think it was ever, but perhaps we should have a rerun. It is rather appropriate that we have got through this marathon Bill in good order and in good time. The Minister is very substantially responsible, not least with his speed-reading skills, for managing us through that lengthy process, and I thank him for that. I also thank him for his good humour, collegiality and careful consideration of the points that we have put forward.

We of course do not agree with everything that has come out of the Committee, and we will pursue some of those things during the Bill’s later stages, but I hope that I can say on behalf of the whole Committee that, overall, we have between us delivered a Bill that fundamentally we pretty much agree on through to its next stages in relatively good order. That is not always the case in this place, and it is something we can all be quite proud of. That is the end of my thanks. I hope that everyone will be happy with having the afternoon off, now that we can move forward to Report stage.