Energy Bill [HL]

Debate between Countess of Mar and Lord Marland

Wednesday 19th January 2011 Grand Committee

[The Deputy Chairman of Committees (The Countess of Mar)]

My Lords, I think that we should restart, but I should say that there is very likely to be another Division immediately after this one is decided. I will try not to interrupt the noble Lord, Lord Marland, in the middle of a sentence this time.

[Lord Marland]

I shall start the sentence again. I will rely on Hansard, as I always do, to dig me out of any holes that I have got into.

Amendment 13A proposes a further element to the terms of the plan to provide for confirmation of the ownership and maintenance of the Green Deal improvements when the bill payer and improver are different people. I am grateful to noble Lords for raising that issue. It may need to be provided for within the terms of the Green Deal plan. However, I resist the amendment on the basis that we have already provided for further compulsory conditions to be specified in the framework regulations under subsection (1)(b). If the issue needs to be addressed, we already have the power to add it to the terms of the plan.

--- Later in debate ---

[The Deputy Chairman of Committees]

I appreciate that. I am afraid that I had to call the noble Lord, Lord Marland, between the two Divisions. I recognise that there is a problem when we get Divisions back-to-back like this. I have given some leeway; I gave about five minutes on the last Division.

[Lord Marland]

Amendments 13 to 16 all deal with the financial terms of Green Deal plans. However, before I address the amendments, let me put on record that the Consumer Credit Act applies to the Green Deal plans in full bar a few essential amendments in the Bill in Clauses 23 to 27. This provides a high starting point for consumer protection. Clause 5 gives the Secretary of State power through regulation to put additional protections into the Green Deal regime.

Amendments 14 and 16 are closely related to the Consumer Credit Act. Amendment 14 seeks to apply one specific aspect of the CCA: the presentation of the terms of the plan. This means that Green Deal providers would need to set out the total credit payable, the amount of the regular payments, and the annual percentage rate—APR—calculated in accordance with the rules. However, it is not necessary to include the amendment, as the relevant legislation already applies in full to Green Deal arrangements for consumers.

The purpose of Amendment 16 is to remove the ability to set out, in secondary regulations, how the fee for early repayment should be calculated. The effect of the amendment would be that no provisions about early repayment fees could be set out in regulations for Green Deal plans. Domestic Green Deals would be subject to an early repayment rule, which would be set out in the Consumer Credit Act. However, business Green Deal providers are not subject to any existing regulations on early repayment fees. This amendment would remove Government’s ability to set out regulations limiting the fees that can be charged. This means that the business Green Deal providers could be free to determine their own fees for early repayment of the Green Deal and could lead to inappropriately high fees being charged. For small businesses in particular, that could be a concern when signing up for the Green Deal. I therefore respectfully request that the noble Lord withdraw the amendment to allow us to put in place in secondary legislation the appropriate protections for businesses taking out Green Deal plans.