Energy Bill [HL]

Debate between Lord Davies of Oldham and Lord Dixon-Smith

Monday 24th January 2011 Grand Committee

[Lord Davies of Oldham]

The Minister is doing her best in what we all appreciate is a very difficult area. We all understand that the tenant’s response is optional. We discussed this in the previous sitting of the Committee. We cannot have a situation where a tenant exercises an absolute veto, because one person might operate a veto on 400 fellow tenants, all of whom agreed to the change. We all recognise that there is no veto. However, there is an issue about a tenant's consent and subsequent payments. The Minister is leading us down some strange paths. Are we saying that the holiday could last for the whole period of their tenancy, however long that might be? Who makes the judgment on the right to opt out of an agreement that admittedly may have preceded their arrival in the tenancy? How do they exercise the opt-out, for how long, in which circumstances and who is the adjudicator?

[Lord Dixon-Smith]

My Lords, I feel provoked to intervene. We are making the subject far too complex. I thought that I heard, a few minutes ago, that the golden rule of the Green Deal would be that the energy savings would equal the cost increases. If I did not hear that, I am mistaken, but I am fairly sure that I did.

If that is the case, let us consider a situation where one tenant leaves and a new tenant comes in. Provided that rule applies, there is no disadvantage or, indeed, advantage to the new tenant in saying that he does not want to be part of the deal. If the deal is cost-neutral, why is he likely to refuse to participate?

I also think we need to bear in mind that word of mouth is a very powerful force. Once the scheme begins to operate on any sort of scale, I suspect that there will be a great deal of support from those who initially participate in it. They will all be telling their friends that they have a warmer house; that their energy bills are at a new level; and that the improvements apply to both tenants and landlords. I suspect that we will get to the point after a time where tenants start to demand their landlord to make the improvements if they cannot themselves. I am therefore optimistic about the way this scheme will go, and we should not raise too many potential difficulties. The difficulties are there, I admit, but in reality, once the scheme begins to take off, it will develop its own momentum and the nightmare scenarios being portrayed will not in fact exist.

Energy Bill [HL]

Debate between Lord Davies of Oldham and Lord Dixon-Smith

Monday 17th January 2011 Grand Committee

[Lord Davies of Oldham]

I apologise to the noble Baroness; it was late notice, but we understood that in the latest official groupings Amendment 1B was to be degrouped. If it is not on the official groupings list, I present my apologies to her in pre-empting that position. It was our intention to keep the Welsh amendment separate because although he indicated aspects of principle on which he did not agree with our other amendments, he indicated that Committee stage is a time when we can consider issues in the round. Although he has indicated his reservations about the previous amendments, it is only appropriate for me to emphasise the importance of Amendment 1B and say that in our general consideration, we recognise the position of Wales.

The Scottish position is covered by similar provisions in the Climate Change Act 2008, so issues with regard to Scotland do not need to be considered specifically in this legislation. Issues with regard to Wales do need to be considered, however, particularly against a background where—as the Minister knows only too well, with the impending referendum on the powers of Wales—this is quite an important year for the devolution settlement. My noble friend Lord O’Neill identified the fact that there is a vast difference between the objectives and aspirations that the Welsh Assembly Government might have and their ability to translate these into achievements in terms of the resources which they have at their disposal and can command. That is an issue to be settled much later this year.

When the Minister is considering the issues which my noble friend has raised on the Green Deal, I suggest that he respects the position of Welsh Ministers and the role of the Welsh Assembly. I beg to move.

[Lord Dixon-Smith]

My Lords, I was trying to get in before the noble Lord sat down. I assume from what he said that Welsh Ministers have seen this amendment and support it.

[Lord Davies of Oldham]

If we won the argument substantially with the Government on the main proposals of the Bill, I have not the slightest doubt that the wisdom of Wales would be such that Welsh Ministers and the Welsh nation would recognise the values in the Bill which would be translated into meaningful structures for them. However, we have not yet consulted Welsh Ministers on the amendment.