UK Energy Sources and Cost of Energy

Baroness Bennett of Manor Castle Excerpts

Thursday 19th March 2026 Lords Chamber

[Lord Whitehead (Lab)]

The Government are open to all eventualities as far as this crisis is concerned and are keeping the position under review on a very regular basis. The noble Lord will know that immediate support has been for heating oil, particularly for those customers who are off grid in the UK. The Government recently announced over for supplies of heating oil, with particular reference to Northern Ireland, where a substantial proportion of the population are dependent on oil for heating. Of that £50 million-odd, £17 million has gone to Northern Ireland for that purpose.

[Baroness Bennett of Manor Castle (GP)]

My Lords—

[Lord Hintze (Con)]

My Lords—

[Captain of the Honourable Corps of Gentlemen-at-Arms and Chief Whip (Lord Kennedy of Southwark) (Lab Co-op)]

We will hear from the noble Baroness, Lady Bennett.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I am sure that the Minister will agree that the cleanest, greenest, cheapest and most secure energy is the energy that you do not need to use. France, for example, is far ahead of us in avoiding wasteful use of energy, with measures such as switching off the lighting for shops, ensuring that offices switch off lights during the night and taking measures to stop wasting energy, such as with video screens with advertising. What steps are the Government taking to reduce the wastage of energy, which will make us all more secure?

[Lord Whitehead (Lab)]

The first issue is, as the noble Baroness suggests, the efficient use of energy by more intelligent means and planning how that energy is deployed on a highly intelligent basis. That is activity that the Government are advanced on as far as the management of our energy system is concerned. The second point is, as the noble Baroness mentions, the energy security from energy that is not used. The Warm Homes Plan that the Government have recently introduced—a multi-billion programme over a number of years to increase the energy efficiency and resilience of people’s homes, particularly those in fuel poverty—will produce not only a win for fuel poverty but a substantial win for the efficiency with which energy is used and the amount of energy that is used in the domestic sphere.

Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026

Baroness Bennett of Manor Castle Excerpts

Thursday 12th March 2026 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I offer the Green Party’s support for this statutory instrument and oppose the regret and fatal amendments. I will add some extra points to this debate that have not yet been made. We must look at this in the context of global shipping, which, back in 2018, represented around 2.9% of global emissions caused by human activities and is projected to rise by up to 130% by 2050, which, essentially, would blow our climate restrictions out of the water, to use an appropriate metaphor.

In July 2023, the International Maritime Organization committed to new targets for greenhouse gas reductions and was going to adopt a basket of measures globally last year. Since then, as in many areas, we have seen President Trump put a spanner in the works. That makes it even more important for the UK to hold the line and set the standard in being, as we so often hear people saying, a world leader. If we take steps to get the fossil fuels out of these vessels and adopt alternatives then this will be world-leading. These are steps that will address the cost of living. I refer noble Lords to the report out this week from the Climate Change Committee. It noted that delivering net-zero targets will cost less than a single oil shock across the economy. Relying on fossil fuels is an extremely expensive, risky economic choice, as well as all the other issues.

There has been a fair bit about the Isle of Wight, but I want to build on what the noble Earl, Lord Russell, and the noble Lord, Lord Ashcombe, said. I had extensive comments, but they have said quite a bit of what I was going to say. The key point to add is that this is expected to add £1 to £2 extra to a ticket. We have grossly expensive transport options for the people on the Isle of Wight and a grossly unreliable transport system. We need huge improvements and huge changes. I speak as someone who goes to the Isle of Wight quite regularly.

Today, there are no wheelchairs, prams or bikes permitted on the FastCat due to a technical issue. The Fishbourne to Portsmouth car ferry sailings have been cancelled due to a combination of forecast wind conditions and the “St Clare” ferry running on three out of four engines due to a propeller issue. There are big problems with the Isle of Wight’s transport provision, but this is tiny in the scale of the broader problems that desperately need to be addressed.

It is worth noting what can be achieved and what is possible. On 10 March, the “Baltic Whale” took part in its first commercial voyage from Scandlines, which aims to operate without direct emissions by 2040. On the Rødby to Puttgarden route, the freight ferry makes the 10-mile crossing in 45 minutes. It has a charge time at each harbour of 12 minutes. Other countries are making huge advances. Interestingly, the “Baltic Whale” makes far less noise, which is of huge benefit to the natural environment, to the wildlife in the Baltic Sea and to human life.

I go back to the Air Quality Expert Group’s 2017 report, Impacts of Shipping on UK Air Quality, as not much has changed. It noted that shipping makes “significant contributions” to emissions of nitrogen oxide and sulphur dioxide, as well as PM2.5 and PM10—particulate matter. That includes emissions of black carbon and carbon dioxide. All those have major impacts on public health. If we get away from fossil fuels, we will make important steps to improve public health.

Finally, I have a direct question to put to the Minister, where I will stop supporting the Government and ask a challenging question. Everything I have just said—and what this SI does—is contradicted by the UK cruise growth plan, which aims to increase the amount of cruise ships. I draw here on a very useful briefing from Transport & Environment from the end of last year. Cruise ships are already having a huge impact on air quality in ports and can be responsible for up to 96% of toxic sulphur oxide pollution at the busiest terminals. That is particularly an issue at Southampton. It is also a very big issue in Belfast. How can the Minister justify taking steps here that are both public health measures and climate measures while the Government are in other ways promoting more pollution and more health damage?

[Lord Rogan (UUP)]

My Lords, in common with my noble friends and Ulster Unionist Party colleagues at the Stormont Assembly, I cannot support this legislation, which is detrimental to Northern Ireland, given the Province’s huge reliance on sea transport. We note that ferry services for the Scottish islands are exempt from this provision. Perhaps if Ministers were chasing votes in Northern Ireland in May, as they are for elections in Scotland, the exemption might have been extended across the Irish Sea as well. The Irish Sea is nothing less than an economic lifeline for the Province, with around 90% of its trade and passenger movements coming via ferries and shipping routes.

I have raised the issue of the lack of competitiveness in air services between Northern Ireland and Great Britain on numerous occasions in this House. Flying to and from Belfast on domestic routes has become incredibly expensive. Given the ongoing events in the Middle East, prices will likely rise still further. Unlike most other parts of the United Kingdom, the use of sea transportation is therefore not optional for many people and businesses in Northern Ireland.

I fully appreciate the Government’s aspiration to advance decarbonisation through the use of alternative fuels. However, if the world has learned nothing else over the past two weeks it is that there will be a continued reliance on fossil fuels for the foreseeable future in the UK and elsewhere, whether we like it or not. As such, the consequence of this order is the creation of what can only be described as a carbon tax in Northern Ireland, which would not have to be borne in anything like the same degree by the rest of the United Kingdom.

Of course, this comes as the Province continues to struggle with the seemingly ever-growing burden of costs on its people following the imposition of the Irish Sea border. The previous Conservative Government claimed to have removed it by dreaming up the Windsor Framework. It did not work. In opposition, the Labour Party pledged to improve matters if it came to power. It has not. Indeed, we have yet more costs being slapped on the Province through the order to keep Brussels happy, because the EU sets the rules in Northern Ireland now, not our supposedly sovereign UK Government.

If this order was for any purpose other than pleasing Brussels, the Government could and should have chosen to direct its proceeds into the Northern Ireland economy, perhaps with an emphasis on supporting our shipping industry and its transition to alternative means of propulsion, but they have not done so. Instead, we have yet another example of Whitehall taking the simplest option, with all the damaging implications it will have for that part of the United Kingdom, about which it knows little and, I feel, cares even less.

Energy Markets

Baroness Bennett of Manor Castle Excerpts

Monday 9th March 2026 Lords Chamber

[Lord Whitehead (Lab)]

My noble friend is right that, quite uniquely within the UK, Northern Ireland has a preponderance of oil used for heating, as opposed to the relatively small percentage in England, Wales and Scotland. It is particularly important that we get a grip on heating oil and kerosene in general at an early stage in this process. That is why the Government have undertaken the initiative today to make sure that the industry is very clear about how it manages the price of heating oil for the future and does not engage in price gouging as a result of this particular energy crisis. But prices in general will probably be subject to the duration of this war. Part of the process has to be to make sure that this war comes to an end as soon as it can, that supplies are secured, and that confidence is restored in the fact that energy can pass reasonably unhindered from the site of the war to its destinations. The UK Government are very involved in doing that.

[Baroness Bennett of Manor Castle (GP)]

My Lords, an investigation today by the Guardian finds that a series of government announcements to

“mainline AI into the veins”

of the UK economy are riddled with “phantom investments” and what the Guardian describes as “shaky accounting”. In the light of this Statement on energy markets, is this not perversely a good thing? Does the Minister agree with me that we need to be thinking about the kind of energy use that is truly beneficial and efficient, both environmentally and economically, given that, as Ofgem concluded last month, 140 proposed data centre energy projects could need more power than the current peak demand? I agree with the noble Lord, Lord Moynihan, that we have to keep powering the incubators for ill babies in hospitals. That is surely more important than generating AI slop of pictures of Jesus Christ made up of shrimps.

[Lord Whitehead (Lab)]

I thank the noble Baroness for that interesting image of what we do not want to happen, as opposed to what we do want to happen. Of course, what we want to happen is real, low-carbon energy projects, and there is an enormous amount of investment—£90 billion is the figure from 2024—going into the low-carbon green economy at the moment, running three times as fast as the general economy. However, that investment has to be in real things. An issue that Ofgem is dealing with at the moment is distinguishing between what you might call tyre-kicker projects that want to come online in order to fund a speculative project, and those that really are necessary for our energy renaissance as a low-carbon energy superpower. The only way to become an energy superpower is to have a super-powered energy economy of real projects with real connections that actually do the business in the way the noble Baroness suggested, rather than being diverted into things that may or may not happen and are largely speculative at the moment in their promotion and origin.

Offshore Wind

Baroness Bennett of Manor Castle Excerpts

Monday 19th January 2026 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, for the Green Party I welcome both this Statement and the decisions that it records.

I have a question about a specific area which is going to need vastly more development. The allocation includes two floating offshore wind projects. They have higher prices but there is a clear strategic intent if the Government are going to meet their target for offshore wind. We do not have enough sites for turbines embedded in the seabed and we are going to need these floating turbines.

If the Government are going to move beyond these demonstration-type levels and deliver pipeline depth and cost reductions, this will need to advance very fast. Can the Minister give us a picture and a sense of where the Government see this going in terms of floating offshore wind?

[Lord Whitehead (Lab)]

I thank the noble Baroness for that intervention. It gives me an opportunity to confirm the two floating offshore wind projects that have been agreed under this auction round. I might add, by the way, that the auction rounds were not a sort of shoo-in for anybody who wanted to come along and invest, as some people have portrayed them. They were very competitive. The number of entrants to the auction was substantially larger than the number of contracts finally agreed. Among other things, this shows that there is a real appetite for this kind of investment going forward.

That is the case with floating offshore wind. Although the two schemes that were agreed—one in Scotland and one in the Celtic Sea—are not, shall we say, final, full-scale arrays as far as floating is concerned, they represent a tremendous step forward in the development of offshore beyond the continental shelf in the UK. Huge new areas offshore from the UK can be opened up to offshore wind.

Of course, that price is not the same as the price we achieved with the mature, bottom-based offshore wind that we have been talking about, but, if we look at the original administrative strike prices when offshore first took off, they were not dissimilar to the sort of prices that we are now seeing for floating offshore wind. I am confident that, once those arrays get larger, and with the flow of fabrication and assistance which the noble Baroness will probably know is already happening very positively, in the Celtic Sea in particular, the net benefit for Great Britain of floating offshore wind will not just be a large number of jobs and more income coming into different areas of the UK than has been the case for bottom-based offshore at the moment. It will represent a technology that really will allow the whole of the UK to participate in the offshore wind revolution, not just the areas which hitherto have had the main developments in their particular zones.

The Celtic Sea, in particular, is just a taster of what is going to come in the not too distant future—and, by the way, it will be a future in floating offshore wind that will be a British future. Home-grown technology will lead in this particular area, which will not only have an impact in UK but will have a substantial export impact as well.

--- Later in debate ---

[Lord Whitehead (Lab)]

I do not recognise the scenario that the noble Lord paints. Not only is this AR7 settlement good for energy prices—indeed renewables and low-carbon energy have reduced overall prices by 25% because of the effect of the merit order and the driving of gas to the margins in terms of prices—but the industrial work that will be undertaken will be enormously good for a large number of jobs with the fabrication and erection of piles, jackets and all sorts of things which go with this. By the way, the Government are producing a clean energy bonus to make sure that that work is in Britain, so it is a major industrial step forward for this country in its own right.

The noble Lord mentioned that I had not said anything about intermittency. I thought that I had dealt with that issue by saying that one thing we have to do as far as our energy is concerned is run the whole system smartly. Wind, both onshore and offshore, has tremendously increased its efficiency—ie, the proportion of time it produces wind—and the issue at the moment is not whether wind collectively produces a large output on a reliable basis. After all, we had over 80 days last year when renewables and low carbon completely fuelled our energy economy. The fact is that intermittency is a problem only if you do not have a smart system to use that energy where you have it in the smartest possible way. That is why, among other things, there has been such a development imperative on batteries and other low-carbon forms of storage that distribute the energy in a much more coherent way from the sources that we have.

It really is not a scenario that I recognise. I do not think the British economy is going to be ruined by this; on the contrary, this is going to be a great leap forward for the British economy. After all, as has been said on a number of occasions, the green economy in Britain is growing three times as fast as the general economy. This is where the growth is going to come from over the next period, and is very much a leading part of that growth and the new industrial future.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the Minister referred to onshore wind. Under previous Governments, we saw onshore wind come to a grinding halt for reasons of apparent short-term political advantage. Onshore wind has the potential to be part of community energy schemes. Offshore wind inevitably tends to involve large multinational companies, but onshore wind gives communities the chance to decide for themselves how to generate their own energy and use local resources. Can the Minister outline where the Government are going with that?

[Lord Whitehead (Lab)]

I am sure the noble Baroness will be aware that one of the first things that the new Labour Government did when we took office was, literally at the stroke of a pen, to remove the ban on onshore wind. We have subsequently made sure that onshore wind enters the allocation rounds. At a local level, Great British Energy will undoubtedly be supporting quite a lot of onshore wind and a number of other community and local renewable resources. The future for onshore is set very fair. After all, it is even cheaper than offshore and just as reliable and long term—indeed, it is marginally better in its overall performance. Onshore is something that we very much want to see as part of the overall package. The noble Baroness will have to wait for about a week before she sees what we have come up with as far as the allocation of further pots is concerned.

Heat Networks (Market Framework) (Great Britain) (Amendment) Regulations 2025

Baroness Bennett of Manor Castle Excerpts

Monday 15th December 2025 Grand Committee

[The Minister of State, Department for Energy Security and Net Zero (Lord Whitehead) (Lab)]

My Lords, these draft regulations were laid before the House on 30 October.

Heat networks have a crucial role to play in our decarbonisation ambitions and energy security mission. As proven internationally, they can provide low-cost, low-carbon energy for all, particularly in high-density areas such as our major cities. They are one of the most versatile forms of renewable energy, as they can access heat from a variety of sources, including waste heat from growth sectors such as AI. This potential has fuelled government ambition. By 2050, we aim to grow heat networks from the current 3% of the UK’s heat demand to around 20%.

However, the growth of this sector depends on consumer trust, underpinned by good regulatory foundations. That means we must deliver a fair deal for the nearly half a million households that already rely on a heat network. The current lack of regulation means that many people are experiencing poor customer service, with unreliable heating and a lack of clarity on what makes up a bill. This cannot continue. That is why, for the first time, we are establishing a regulated market framework to protect heat network consumers that supports the case for sector growth.

Earlier this year, when this House approved the Heat Networks (Market Framework) (Great Britain) Regulations 2025, we paved the way for consumers on a heat network to receive protections comparable to those in gas and electricity markets. The powers for the Secretary of State to introduce these regulations were provided by the Energy Act 2023. They will apply across Great Britain. We have also consulted the Scottish Government, as per Section 220 of the Energy Act. I thank them for their support in this matter. These regulations do not apply to Northern Ireland; the Northern Ireland Executive have their own powers to introduce regulation.

The regulations made in March introduced the authorisation regime. This will work in a similar way to the domestic gas and electricity licensing regime. From regulatory commencement, Ofgem will have the powers to investigate and take action in cases of unfair pricing, establish protections for vulnerable customers and require suppliers to put in place robust complaints-handling processes. It will also be a requirement on heat network suppliers to treat their customers fairly. This instrument is therefore the last piece of the puzzle that will enable this market framework to go live from 27 January.

The instrument simply builds on previous regulations by introducing amendments that will expand the authorisation regime that Ofgem will implement. The changes include the provision of powers to Ofgem to assist with the conduct of pricing investigations, which will be essential to protect customers from unfair, high and opaque prices. It will also introduce deemed contracts to ensure that the rights of households and their supply of heat are protected even when no formal contract is in place.

Noble Lords may also note that this statutory instrument includes provisions to protect consumers if a heat network becomes insolvent. A special administration regime, or SAR, will seek to ensure that customers do not experience interruptions to their supply of heating and hot water in the event of a heat network operator or supplier insolvency. The rules for this will be set out in separate statutory instruments that will be put forward to this House in future.

The instrument also makes it clear that air conditioning systems will be explicitly excluded from the scope of these regulations, as we believe that including them would not be proportionate or in the interests of consumers, and air conditioning systems normally stand aside from the heat network itself.

In addition to the above, these amendments include provisions to partially revoke parts of the Heat Network (Metering and Billing) Regulations 2014. This is designed to avoid duplication in legislation, as there are some existing requirements and obligations on heat supplies in the metering and billing regulations that will now be streamlined rather than entirely removed.

Finally, these amendments make changes to the scope of the Energy Ombudsman scheme. The addition of small businesses aims to align the scope for heat networks with the scheme’s application in gas and electricity markets.

I wish to make noble Lords aware, by the way, that there is a slight error in Regulation 10, which would have the effect of applying a different definition for a micro-business from that in gas and electricity markets. Officials will ensure that this error is rectified as soon as possible through the medium of a negative statutory instrument in the very near future.

We have committed to maintain minimum technical standards, which will be a key part of the market framework, and we aim to consult on proposals shortly. However, to be clear, these are not in scope of this statutory instrument and draft regulations will be brought forward to this House in due course.

I understand that four public consultations dating back to February 2020 have informed these regulations, which have helped the department to develop the final market regulation proposals. The detailed Ofgem authorisation conditions and associated guidance are still being consulted on and will be published before the authorisation regime commences on 27 January 2026.

In conclusion, this instrument and the one made in March will enable the Government to do what has never been done before, as we introduce regulation to the heat network sector. The only way to realise the Government’s growth ambition for heat networks is to ensure that customers can trust heat networks to provide safe, reliable and cost-effective heat. These regulations therefore represent a huge step forward, providing heat network consumers with much-needed protection similar to that in other utility markets that already exist. We must get on with the job and introduce the final elements of the market framework that will not only help to drive up consumer standards in this sector but help to promote market growth. I beg to move.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I thank the Minister for his clear and comprehensive introduction to this SI and I welcome the fact that we are getting this long-overdue regulatory framework for heat networks. I agree with him that they are an important part of our energy future. Based on renewable and low-carbon emissions, they can give people reliable, secure energy supplies to meet their heating needs.

My questions are based on a report from Citizens Advice in July this year, titled System Critical: No Margin for Error in New Heat Network Rules. That “no margin for error” is why we are here interrogating this. As that reports outlines, and as the Minister said, since the rising price of gas after Russia’s invasion of Ukraine, we have seen serious problems in this sector.

My first question relates to what the Minister said about regulatory commencement on 27 January. The report says that Ofgem

“must outline the standards expected”

from providers, how it will act

“to improve systems and processes”,

and how it will deal with some of the terrible behaviour we have seen from some of the providers. Given that 27 January is not far away at all, my question to the Minister is: how prepared is Ofgem to act on this? We will of course already be in the middle of winter and people will already be accruing bills, which will be a real issue.

My other question relates to my personal experiences, particularly with Camden council estates. We know that many heat networks were installed in the 1960s and 1970s and have lots of problems, including that they are not controllable. People find themselves being heated even when they do not wish to be heated. There are real problems with controls, systems, leakage and all those kinds of issues. I am interested in the Minister’s view of how those issues will be addressed under this framework.

[Earl Russell (LD)]

My Lords, we support the Government’s fundamental ambition grow UK heat networks from the current 3% to 20% of the UK’s heat network demand by 2050. We share this ambition; we recognise that heat networks will play a pivotal role in helping to achieve our drive towards net zero and driving low-carbon energy growth. I particularly note that this is important in relation to the planned future growth of AI.

But, if this vision is to succeed, customers will have to have the absolute trust that heat networks are safe, reliable and cost effective. For too long, as the Minister acknowledged, this part of our energy system has been in the regulatory twilight zone. The half a million households on heat networks have often been left facing poor customer service, frequent outages and opaque billing. In many cases, people have found themselves trapped in contracts with extortionate charges and little way out. So this statutory instrument definitely goes a long way; it is long overdue and very welcome, because it helps to bring some order to that chaos. In the other place, the Minister himself noted the number of complaints that he personally had had about heat networks. So this is a significant step, and it places customers on a more equal footing with those in regulated gas and electricity markets, so we welcome it.

We also welcome the introduction of the special administration regime—SAR—for protected heat network companies. This is a vital safeguard. It ensures the continuity of heating and hot water supply even if the operator collapses, and it literally stops people being left in the dark and the cold.

We broadly share the plan to share the costs of the administration across the market. This seems a sensible approach and it strengthens market confidence by spreading that risk. When will the detailed regulations be published, and how will the Government ensure that these costs are shared fairly and equitably across the market, particularly in relation to the smaller operators? Will further consultations take place on that specific aspect of that sharing of the cost?

We welcome the new deemed contracts provisions, which are important because many people move to a house that is on one of these heat networks and have no choice but to sign up to them. So these deemed contracts are important and will help to ensure that people get a fair rate for their energy.

We fundamentally welcome the new powers that have been given to Ofgem. These give the regulator real teeth in this marketplace, with explicit authority to determine whether the charges are disproportionate, to investigate poor service, to extend the redress schemes and to support small businesses and micro-businesses. I recognise what the Minister said about how the definition around micro-businesses will be changed to make sure that it fits with the other regulations.

Nearly half a million households are on these networks and, to date, they have had little power or influence, and there have been problems. So what specific guarantees can the Minister offer that Ofgem will have both the additional resources and the new technical capacity to conduct effective investigations and issue binding directions where network operators are found to be guilty of unfair charging practices? Will the Government commit to publishing a transparent industry-wide methodology, showing how this issue of either disproportionate or not disproportionate charges is arrived at?

Generally, my questions further forward are about how, as we have heard, these regulations will come into force at the beginning of January—literally in a few weeks’ time. Considering the short amount of time before they come into effect, I ask the Minister to give an assurance about the customer redress scheme and the correction of technical error, and an assurance that Ofgem has the resources and capability to implement all these systems on time, because that is a concern.

Generally, these regulations are welcome. They bring order and clarity, and they help to bring confidence to this market. If this market is to grow, it needs this regulation, so we welcome this SI.

--- Later in debate ---

[Lord Whitehead (Lab)]

I thank noble Lords for their valuable contributions to this debate. A number of them go to the heart of why we are doing what we are doing today: the question of the state of many of the older heat networks that exist in this country. They are very far from the sorts of standards that we would expect to bring forward in new heat networks, and they have often operated with very sub-optimal arrangements for many years, to the considerable detriment of customers.

Therefore, the regulatory regime that we are introducing should give an enormous amount of succour to those who have suffered under those heat networks over a long period. As mentioned by the noble Baroness, Lady Bennett, there are heat networks from the 1960s and the 1970s which simply have not updated what they do, and they will be held accountable for what they do in these networks by the new regime under Ofgem. Ofgem can introduce fines for the systems if they are found wanting and, as a measure of last resort, can ensure that those networks are transferred to the running of another organisation entirely.

The noble Baroness, Lady Bennett, also mentioned the report encompassing a number of these issues from Citizens Advice, and that is why its work as a consumer champion is so important. I can assure the noble Baroness that Ofgem will be ready for regulatory commitments. It has raised no questions about its capacity to introduce these regulations and to make sure that they work to maximum capacity from day one. Ofgem will, however, take action such as collecting pricing data and various other things to refine how the regulations may work over the early period of their operation.

I can assure the noble Baroness, Lady Bloomfield, and the noble Earl, Lord Russell, and all the noble Lords who raised concerns, that Ofgem will therefore be ready for regulatory commencement. Ofgem will be publishing what methodology will be used to determine reasonable pricing. This has recently been consulted on by Ofgem. However, the exact benchmark of what is considered fair pricing will not be published first, so that heat networks do not move their prices to the top of that benchmark.

Overall, therefore, I assure noble Lords that the scheme will work to the best of its design and ability from the word go and will properly encompass all the many and varied types of heat network we have in operation, with a view to bringing them all up to the same standard, rather than down to the same standard, for the future. Indeed, the instrument simply builds on previous regulations by introducing amendments that will expand the authorisation regime that Ofgem will implement. We have also heard mention of deemed contracts, which will be in place to ensure that the rights of households and their supply of heat are protected, even when there is no formal contract in place.

I am sure noble Lords will want to join me in thanking the District Energy Association heat authority, which tried to put a voluntary system into operation to secure compliance and uprating of systems. That has worked for 10 years. In itself, it has worked very well, but it encompasses only part of the heat network arena. This will cover everybody, so it will be a great step forward in that respect.

On the question of consultation, I understand that the four public consultations that have already taken place, dating back to February 2020, have informed the regulations, but the detailed Ofgem authorisation conditions and associated guidance are still being consulted on and will certainly be published before the authorisation regime commences on 27 January.

In conclusion, I consider that these regulations, which will include the most vulnerable, will now make sure that pretty much everybody enjoys statutory protections. Heat networks are indeed the future, and we must do everything we can to support their growth and instil confidence in that growth as it takes place. Sound and proportionate regulation is therefore central to delivering this and I beg to move.

[Baroness Bennett of Manor Castle (GP)]

One of the responses provided by the Minister provoked a question in my mind; at this point, I should perhaps declare that I am a vice-president of the Local Government Association.

The Minister said that there would be fines for systems—we were talking in particular about those long pre-existing, 1960s and 1970s-type systems—and that they could potentially be transferred to another authority. Of course, many of these systems will be owned and run by either councils or arm’s-length organisations that used to be owned by councils or housing associations. I will understand if the Minister wants to write to me, but are the Government considering the fact that many of these will not be commercial providers?

[Lord Whitehead (Lab)]

The noble Baroness makes a good point in relation to what are, as I have said, a huge number of systems of very different quality and status. Making regulations in respect of those sorts of bodies is very difficult, because they are all mini electricity or gas networks in their own right; indeed, they are mini networks that could fall by the wayside if they are regulated in a way that is not sympathetic to their particular arrangements. Noble Lords can see, I think, that these arrangements do not exactly coincide with what is in the existing gas and electricity sectors, but do try to take account of those particular circumstances.

Within that, there is a serious bottom line: these bodies must provide good value for their customers, provide good levels of redress and ensure that they are operating to the best of their capacity. Those are the sorts of things that Ofgem will ensure are looked at and regulated properly, with an eye on the fact that heat networks are not in the same position as electricity and gas networks. That bottom line is there in these regulations and should not be set aside easily. Otherwise, Ofgem will certainly be doing the business of ensuring that those bodies work properly.

I think there is nothing further for me to say, other than that I commend these regulations to the Committee. I hope, by the way, that what I have said this afternoon satisfies the noble Baroness, Lady Bennett, as far as her question is concerned; if she has any further concerns, I will be happy to write to her.

COP 30

Baroness Bennett of Manor Castle Excerpts

Wednesday 3rd December 2025 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I join other noble Lords in welcoming the new Minister to your Lordships’ House and to his role, and welcome particularly his response to the noble Lord, Lord Offord.

Central Hall Westminster on the morning of 27 November was very crowded. I did not see the Minister there and I appreciate that he had many other things to be doing at the time, but that of course was when the National Emergency Briefing to which the noble Earl, Lord Russell, referred was being held, when 10 of the UK’s leading scientific experts spoke to the packed hall, addressing our interrelated climate and nature emergency. Given the, I am afraid, limited outcome of COP, particularly in the failure unanimously to agree the road map on transitioning away from fossil fuels, those experts asked for a televised emergency briefing to the nation to explain to the country the urgency of the crisis that we face. Are the Government prepared to support that call and act on it? What else are the Government planning to do to highlight the reality of the emergency situation we are now in, as demonstrated by the dreadful floods in Asia—Sri Lanka, Indonesia and Thailand—where the death toll is already more than 1,400?

[Lord Whitehead (Lab)]

The noble Baroness is quite right that we are seeing in front of us right now all the things that the scientists said were going to happen. They have been proved absolutely right. So the first thing we need to do is stick to the science, make sure that whatever we do is in line with the science and explain that science to the country in a very clear way: if we do not do these various things, we can already see the results of inaction in front of us. While I cannot commit this evening to a national televised discussion on how we go forward, what I can commit to is the continuation of the attempt by this Government to explain very clearly what they are doing, for example, on clean energy and why that is absolutely essential to keeping our hopes of 1.5 degrees open and making sure that as a result of that—for the episodes that we are now seeing, a lot of this is baked in, obviously, to the climate warming we have already—there is the possibility of a better, safer, cleaner and more prosperous world in the future.

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[Lord Whitehead (Lab)]

It is because the model of how renewables develop is precisely the opposite of how fossil fuels develop. They are very capital-intensive and, after that, the power that comes from them is, in essence, free. Therefore, we need to establish, through capital support in particular, those renewable arrangements which can give us in perpetuity that cheap power for the future. These things in essence are not subsidies; they are investments in how that power reaches us for the future. I am sure, as the noble Lord, Lord Lilley, and I have had debates in the other place, that this discussion will continue, but I very much stand by my view—and accept he stands by his view—that non-fossil fuel power is inevitably going to be cheaper, more secure and more reliable than the fossil fuel economy we have at the moment.

[Baroness Bennett of Manor Castle (GP)]

My Lords, since there is time, I very much appreciated the tone and the energy of the Minister’s response to my initial question, but that, and all our discussion, very much focused on the energy side of tackling the climate emergency. I hope the Minister will agree that, as was stressed at the National Emergency Briefing, the climate emergency and nature crisis are intimately interlinked. At that briefing, Professor Nathalie Seddon, professor of biodiversity at the University of Oxford and founder of the Nature-based Solutions Initiative there, spoke about the incredibly parlous state of nature in the UK and the impact that is having on human health as well as on the climate. Can the Minister reassure me that the Government really are focused on and understand that interlinkage between nature and climate?

[Lord Whitehead (Lab)]

Indeed. At COP 30, the essential integration of nature and climate change was emphasised both in the communique at the end and during discussions. I can assure the noble Baroness that the UK Government are absolutely alive to this. In terms of investment in nature funds, we have shown practically that we are willing to, as it were, put our money where our mouth is and make sure that we are full players in the international integration of nature and climate change action.

Digital ID

Baroness Bennett of Manor Castle Excerpts

Tuesday 14th October 2025 Lords Chamber

[Lord Vallance of Balham (Lab)]

The new part, as I have said, is exactly about the right to work and the ability to have identity related to the right to work. That will form a platform for digital ID and the ability to use that in other ways for the services described in the Data (Use and Access) Act.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the noble Lord may have seen an article in Computer Weekly in June in which the headline talked about the eVisa system as being “error-prone” and “anxiety-inducing”. Among the cases in this extensive report was a doctor with indefinite leave to remain who had been here for 20 years but could not travel to a medical conference because the IT error meant that they could not link their official identity documents to their visa account. The report also talked about a woman they called Athena who had to take a month off work because she was so stressed by the fact that the Home Office computer could not match the name on her passport to the name on her account, despite the fact that her name, which had never changed, was the same on her passport, her eVisa account and her biometric residence permit. Can the Minister tell me why the noble Lord or this House should have any expectation that we would not see the same situation with this proposal?

[Lord Vallance of Balham (Lab)]

I am certainly not going to stand here and say that it is going to be absolutely error-free, because nothing is. I am not going to say that it is easy, because it is not. But there is a big gain at the end of this. It is not as though this has not been done elsewhere. It is not as though there are not ways in which countries have got this to work very effectively. Certainly, if you were to speak to anyone from Estonia, they would think we were mad not to have it already.

Great British Energy Bill

Baroness Bennett of Manor Castle Excerpts

3rd reading
Tuesday 25th February 2025 Lords Chamber

[Lord Naseby (Con)]

My Lords, I took part at Second Reading, but, sadly, I had a short sojourn in hospital during Committee and Report. I will make three points, although I support the whole Bill in principle.

It seems to me that three key areas fall under this amendment. The first is mini-reactors. Three years ago, I was told that Rolls-Royce was ready to go. It is fundamental that the mini-reactors get going.

Secondly, I understand there is some discussion about the role of hydrogen. I have contacted two universities, Cranfield and Manchester, which are doing extensive work. Additionally, the boiler workers’ union is totally involved. Hydrogen work is absolutely fundamental to the future of our energy, particularly for domestic heating.

Finally, there is still a view that, rather than import oil and gas, we should carry on some degree of exploration in the North Sea.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I welcome the government amendment and the way in which the Government have listened to your Lordships’ House on this Bill and overseen considerable improvements. One was the inclusion, finally, of community energy, something your Lordships’ House has been fighting for through two Governments and several energy Bills.

However, an important issue arises at this moment relating to community energy. While the amendment that the Government have put down will help community energy to grow in the medium to long term, the sector faces an urgent short-term problem: the uncertainty of the community energy fund’s future. The fund began in January 2024 and has been very successful and heavily oversubscribed: more than 150 community energy projects have been awarded grants. More than 100 projects are ready to go and are eligible for funding, but they will not receive it because the initial £10 million is expected to run out in May. This is the only substantive mechanism helping community energy to grow, yet it has no future beyond this year.

I make no apologies at all for representing Community Energy here. Its members have asked me to say that we have seen so many times with energy policy over the years a boom-bust cycle of funding and defunding and then funding and defunding again. There is a short-term issue here, although the Government have expressed their support for the long term. So can the Minister give me a clear statement on how the Government will deal with the uncertainty over the community energy fund’s future? Can he assure me that there will be early action to deal with the enthusiasm that the fund has not been able to meet, and clear instructions on that in the statement of strategic priorities for Great British Energy, as required by Clause 5 of the Bill?

[Baroness McIntosh of Pickering (Con)]

My Lords, I take this opportunity to congratulate the Minister on bringing forward the amendment.

I support the words from the noble Baroness, Lady Bennett, and ask the Minister what the current position is on the future of the community energy fund: the Government seem to support it, but we need to know how it will proceed and when it will come into effect. How comprehensive will the review, to which the amendment refers, be? It appears to be limited to finances, but can the Minister confirm that it will also cover sustainable development?

We heard for the first time, I think, on Report about the framework document, of which the noble Lord said at col. 1204 of Hansard that it will become available only after the Bill has received Royal Assent, yet it would seem to go to the very heart of sustainability and environmental protection, which are so key to this Bill. Can the Minister explain, if the framework document will indeed cover these points, because he linked it to the sustainable definition that he was using, as recognised by the UN, why it is not part of the Bill, why we have not had the opportunity to debate it, and what the relationship will be between the framework document and the contents of the amendment that he has just put forward?

Rosebank and Jackdaw Oilfields

Baroness Bennett of Manor Castle Excerpts

Wednesday 12th February 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, there clearly are a number of projects that have gone through the licensing process but have yet to come through to the end. We are confident that at the end of the road —or the end of the pipeline, as the right reverend Prelate put it—we will have a situation where, because of no new licences, we will have a thriving asset in the North Sea. The production will reduce, as it is doing at the moment. This will fit in with our overall strategy towards net zero. Clearly, this needs sensitive management. I cannot say it is an art rather than a science, but it is difficult to be more precise than that.

I also refer the right reverend Prelate to the work of NESO, which has made some points on the role of unabated gas. It is also worth reflecting that much of the oil and gas coming from the UK continental shelf is exported. This is another feature of this very interesting subject.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I understand the Minister’s desire not to comment on any individual projects. So, I will ask a general question. A report published this week by the Grantham Institute on Climate Change, chaired by the noble Lord, Lord Stern, from these parts, looked at the current geopolitical situation. It argued that any further advance toward drilling or exploration in the UK would signal to other fossil fuel producers—particularly the US and Russia— that we support a “business as usual” approach to the oil and gas industry. That is the geopolitical context. Will the Government consider that?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I have always thought that Aberdeen’s influence in the oil and gas sector is something we should treasure. Whether actions we take here will be influential internationally is a matter we will have to see follow. We think it right that developers who have gone through the licensing process must be allowed to finish that. We believe that our calculations embrace that. We have reached the right decision: we will continue to support the North Sea and recognise the contribution it makes, but we will not agree to any new licences. We have reached a balanced approach there. I am of course very interested in the report the noble Baroness mentioned.

Biomass Generation

Baroness Bennett of Manor Castle Excerpts

Wednesday 12th February 2025 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I want to following on from the Minister’s response about oversight of the source of the biomass going into Drax. He said he has confidence in the independent regulator, Ofgem. He alluded to the fact that, last year, Drax agreed to pay £25 million after Ofgem found that it had submitted inaccurate data on the sourcing of wood pellets. Does the Minister acknowledge that the problem there is that it is after the event? The trees have already been cut down and burned, and then, some years later, we get a fine. But the trees are no longer there and the carbon dioxide is in the atmosphere. There was a fine of £25 million, but the noble Earl, Lord Russell, referred to what is happening with Drax’s share price. Is there not a risk that Drax just regards this as part of the cost of doing business?

[Lord Hunt of Kings Heath (Lab)]

My Lords, the noble Baroness will know that Ministers do not comment on share prices at the Dispatch Box, for very good reasons.

We need to be clear that Ofgem’s investigation was thorough and rigorous. I have a great deal of trust in the work of Ofgem. The noble Baroness will know that there was no suggestion that Drax was awarded subsidies incorrectly under the existing renewables obligation or contracts for difference arrangements. It was more to with the documentation. The investigation found no evidence to suggest that Drax had been issued with subsidies incorrectly, and Ofgem was confident in its conclusions. Drax made a redress payment because there is a scheme within Ofgem for companies to do that. I must say that £25 million is substantial; I think it was a good indication to Drax that it needs to get its documents in order—and I very much hope that it has done so.

Of course, we will be looking to Ofgem to ensure that that happens, that everything is proper and that, under the new arrangements, we are satisfied that Drax can meet the criteria. This has not been an easy decision. In our debate yesterday, I was interested in the response of the noble Baroness, Lady Boycott, who essentially said that she welcomed the progress; she was not overwhelmed with the decision, but there was an acknowledgement that we are making progress and understand the sensitivities.

One has to come back to the issue of biomass and its sustainability. The UK’s Committee on Climate Change and the Intergovernmental Panel on Climate Change recognise that bioenergy can play a significant role in decarbonising economies. We support the use of sustainable biomass generators only if it meets our sustainability criteria. I have said we are going to toughen that up. At the end of the day, it is a difficult question. I think we have come to a sensible arrangement, which, after all, is a short-term arrangement in the lifetime of the generators of four years from 2027 to 2031.

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[Lord Hunt of Kings Heath (Lab)]

It is a very interesting question. If the noble Baroness, Lady Bloomfield, were here, she would say that fusion is just around the corner. We have this STEP programme. We have global leadership here and my officials and people in the industry are very excited about the potential. When I was doing this job 14 or 16 years agreement, people were telling me it would be 20 years away. I emphasise to the right reverend Prelate that there is real optimism that we are seriously going to be able to make advances. It is the same with carbon capture, usage and storage. Again, we have been talking about this for years, but the Government are putting in some serious investment. We know the technology can work and we think it has great potential.

[Baroness Bennett of Manor Castle (GP)]

My Lords, since we have time, I would like to go back to Drax. We have spoken about where the biomass comes from, in terms of the source of the trees and whether they are whole trees or trimmings. But have the Government given any consideration to what happens in wood pellet facilities, where the material is processed into pellets in the United States? There is evidence of a huge amount of harmful air pollution, including dust, particulate matter, volatile organic compounds and, particularly, toxic or hazardous pollutants such as acrolein and methanol. These can cause problems such as asthma and respiratory illnesses in nearby communities. It is worth noting that many of these facilities are located near communities of colour, who already suffer serious economic disadvantages and health problems.

We know that regulation of environmental factors and environmental health in the US has always been poor. We are seeing every indication from the new US regime that it intends to make it much poorer still. Is this something the Government have considered, are considering or will talk to Drax about and put pressure on it? I come back to a phrase we became very familiar with during the Covid pandemic: no one is safe until everyone is safe. A terrible state of public health in the US—think about what is happening with the H5N1 virus—is of concern to all of us. Are the conditions under which these pellets are produced something the Government think about?

[Lord Hunt of Kings Heath (Lab)]

Yes, it is. We do rely on regulators, both here and in other countries, but the science underpinning biomass sustainability does continue to evolve. The Government have listened to feedback from the noble Baroness, and other parliamentarians and stakeholder groups, about ways in which we can strengthen the sustainability criteria. We are going to consult separately on developing a common sustainability framework, where we plan to gather views and evidence on strengthening wider aspects of biomass sustainability. The points the noble Baroness has raised could very much be embraced within that, and I will make sure that they are.