Energy Bill [HL]

Debate between Baroness Hayman and Baroness McIntosh of Pickering

Committee stage
Monday 16th January 2023 Grand Committee

[Baroness McIntosh of Pickering (Con)]

My Lords, I shall speak to Amendment 229, which is tabled in my name.

Although I am against fracking, I am very much for energy from waste, and I am very proud of the facility close to the A1 at Allerton which is creating energy from waste material that is difficult to dispose of and used to go landfill. The benefits of energy from waste are twofold: we are creating an energy strand and we are disposing of waste. I think there is still an incinerator in Sheffield. I understand it was created by the Liberal Democrat administration at the time of the severe floods in the 2000s. One of the reasons for it was that there was a large quantity of furniture and other items damaged by the floods that needed to be disposed of very quickly. I hope that my noble friend will be minded to do more on energy from waste. Where it works, it works very effectively. We could learn from the experiences of other European countries, notably Denmark and other Scandinavian countries, Austria and Germany. In Allerton at the moment, the energy created is going into the national grid. I argue it should go to the local community. Allerton is one of the coldest parts of the country, and it would be in its interest to have a cheaper source of fuel.

The criticism that is made of energy from waste is around potential emissions. Looking at the BEIS figures which were brought to my attention thanks to the House of Lords Library, I see that the emissions figure for waste incineration was static between 2016 and 2020, at just 0.3 million tonnes of carbon dioxide equivalent, whereas the waste management total stayed at around 17 million tonnes of carbon dioxide equivalent and landfill was off the stratosphere, with extremely high methane emissions. That is another argument in favour of energy from waste.

I hope my noble friend will look favourably on rolling out more projects on energy from waste, such as those he knows about from exchanges we have had on the Floor of the House.

[Baroness Hayman (CB)]

My Lords, I declare my interests as set out in the register. I have Amendment 242A in this group, which is supported across all parties in the Committee—I am grateful to noble Lords who have signed it. It is similar to Amendment 228, which has just been moved by the noble Lord, Lord Teverson. There is a choice of amendments for the Minister, because we have the Labour amendment later on.

Like the noble Lord, Lord Teverson, I am in some ways indifferent to which of the three amendments the Minister supports or to whether he wants to put forward different drafting himself, but I hope that the number of ways the Committee has brought forward this issue will persuade the Government to move. It is worth saying that there is not just support from different parties and political support, and from the Skidmore report, as the noble Lord, Lord Teverson, said, but great support for replacing the existing language of Ofgem’s objectives and duties in the Electricity and Gas Acts with a new text which makes reference to enabling the Secretary of State to meet the targets set out under Part 1 of the Climate Change Act.

As has been said, the future systems operator—the new regulator created by the Bill—does have a specific statutory net-zero objective linked to our climate change targets. However, this is weakened by the fact that there is no equivalent provision in relation to Ofgem, which has only the much more limited duty given to it in the Energy Act 2010. In their consultation on the future systems operator, the Government noted that

“There were several strong calls for Ofgem’s remit to be reformed to focus on enabling net zero in the most economic and efficient way”.


This view is also shared by your Lordships’ Industry and Regulators Committee. I am sure that the noble Lord, Lord Hollick, who signed my amendment, will go into the committee’s rationale for this recommendation.

The case for updated net-zero duties goes far wider than this House or political circles. It has been argued for by environmental organisations such as Green Alliance but also by industry bodies such as Energy UK, the main trade body for energy, representing over 100 energy suppliers and generators. It has said that strengthening Ofgem’s statutory duties to explicitly support the delivery of the legally binding net-zero target would help ensure it balances the needs of both current and future consumers.

As has been said, the Skidmore review has been published in the last few days. It recommends that this change takes place to ensure that Ofgem gives sufficient weight to net zero and to incentivise network companies to plan ahead, emphasising the importance of future-proofing our energy infrastructure. It is essential that Ofgem is given, by government and Parliament, a very clear remit and role as to the importance of net zero and that it recognises the cost to consumers of delayed action. Regulators, given explicit responsibilities by government and Parliament, have a key role to play in demonstrating cross-government commitment to reducing carbon emissions. There is widespread support for this change and I hope the Minister will be able to respond positively to it.

I will turn briefly to two other issues. I record my support for the case made by the noble Baroness, Lady McIntosh of Pickering, and hope that she too will get a positive response.

Turning to Amendment 229 in the name of the noble Lord, Lord Teverson, to which I have added my name, the Minister and I have had many exchanges on the topic of onshore wind. I should start by saying that I welcome the movement the Government have made here and that they have opened a consultation on changing the National Planning Policy Framework guidance on onshore wind, to remove the effective moratorium to allow a new development where the proposal has community support and to encompass the repowering of existing sites.

I also welcome the commitment in the Written Ministerial Statement that the Government intend to make changes by the end of April this year. It is important that we move forward with some speed on this. It is now three years since I tabled a Private Member’s Bill to deal with this issue specifically. In that time, wind farms could have been built in the appropriate places, feasibly adding to the grid at this precise moment and reducing our reliance on expensive gas and foreign imports.

The amendment is not overly prescriptive, as the noble Lord, Lord Teverson, has laid out; it simply requires the Secretary of State to set out a plan as to how more onshore wind farms will be deployed. It does not force the installation of turbines anywhere and would complement the existing consultation, which is focused on allowing communities which can show demonstrable support for onshore wind the ability to install it.

It would indicate the need, and the recognition of the need, for an overarching plan. RenewableUK has long called for the Government to set targets for new onshore wind and solar capacity:

“While onshore wind and solar are now eligible for CfDs, there is no clear medium- to long-term ambition.”


I hope the Minister will recognise that setting a target of 300 gigawatts by 2030 would create 27,000 high-quality jobs and add £45 billion to the UK economy. It is time to set a target now and to be ambitious. I hope the Minister will respond positively.