76 Lord Lennie debates involving the Department for Business, Energy and Industrial Strategy

Tue 20th Nov 2018
Mon 11th Jun 2018
Domestic Gas and Electricity (Tariff Cap) Bill
Grand Committee

Committee: 1st sitting (Hansard): House of Lords
Tue 22nd May 2018
Domestic Gas and Electricity (Tariff Cap) Bill
Lords Chamber

2nd reading (Hansard): House of Lords
Tue 13th Mar 2018
Smart Meters Bill
Lords Chamber

2nd reading (Hansard): House of Lords

Smart Meters

Lord Lennie Excerpts
Tuesday 20th November 2018

(5 years, 6 months ago)

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Asked by
Lord Lennie Portrait Lord Lennie
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To ask Her Majesty’s Government what progress they have made on the roll-out of SMET2 smart meters.

Lord Henley Portrait The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Henley) (Con)
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My Lords, more than 12 million smart meters are operating across Great Britain, with more than 400,000 meters installed every month. As of Sunday 18 November—two days ago—industry information showed that more than 138,000 SMETS 2 meters were connected to the national smart metering network.

Lord Lennie Portrait Lord Lennie (Lab)
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I thank the Minister for that response. Yesterday, Which?, the consumers’ champion, published a report that stated that the Government’s £11 billion rollout of smart meters to hard-pressed customers is seriously behind schedule. To meet their target of a smart meter in every household and small business would now require 30 smart meters to be installed every minute of every day between now and the end of 2020. Currently less than one-third of that figure is actually taking place. In addition, the Government’s projected financial benefits to customers have been slashed from £47 a year to less than £1 a month. Can the Minister say what specific actions the Government are taking to both turn around the lamentable rollout performance and restore the projected financial benefits to customers?

Lord Henley Portrait Lord Henley
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My Lords, I am aware of that report but, as I made clear in my original Answer, we are installing more than 400,000 meters every month and that figure is increasing. We are still confident that we will be able to ensure that by the end of 2020 every household in the country will have been offered a meter. That is the aim that we have set out. We are also still confident that we expect to see a net benefit of around £5.7 billion for the entire rollout—benefits for individual consumers as they get greater choice and the advantage of being able to monitor their electricity and therefore keep their bills down, and advantages to the companies themselves.

Domestic Gas and Electricity (Tariff Cap) Bill

Lord Lennie Excerpts
Moved by
3: Clause 1, after “cap” insert “or tariff cap exemption”
Lord Lennie Portrait Lord Lennie (Lab)
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My Lords, this issue is especially relevant to the green challenger companies coming into the market, particularly those that have R&D interests. Suppliers must also be informed about tariff cap exemptions and it may be that these are being considered for green energy companies with R&D interests. That is not the same as saying that we have any sympathy for the possible gaming that could go on with green tariffs among the big six and other suppliers. They may just be billing companies that cite a certain percentage interest in the green market and then seek to have that applied to their exemption from the tariff cap when it comes into effect. That is not the purpose of the amendment; it should apply purely to the 90%-plus green provider and supplier companies. Obviously we take on board and support what has been said by my noble friend Lord Berkeley, but ask that this amendment also be considered. I beg to move.

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Lord Lennie Portrait Lord Lennie
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Before this comes to an end, would the noble Lord repeat what he said about midata having the ability to steer customers to the cheapest tariff available to them in association with smart meters? When does the noble Lord think this will become available? This is quite revolutionary. It is exactly what is needed, and it was suggested in the Smart Meters Bill, if the noble Lord recalls, that the smart meter could provide that kind of information. Is that how it would be communicated—through a smart meter—or directly to customers?

Lord Henley Portrait Lord Henley
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Midata is a method of electronically transferring customers’ data from a company system to a third party, such as a price comparison website. I was saying that that could lead to innovative third-party switching devices. I think I might have said at Second Reading of the Smart Meters Bill that some apps were already available that could do that for an individual. Therefore, the noble Lord, Lord Lennie, could sign up to something that said, “Always shift me to whatever is the cheapest tariff”. I cannot remember the name of the one already in existence. The noble Lord might then find that two or three times a year he was changing supplier without knowing it, always going to a cheaper one. It might be that the noble Lord, being very virtuous, wanted a greener one or something else, and other such things could be arranged. I hope that is what midata will help the noble Lord and others to do.

Lord Henley Portrait Lord Henley
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The noble Lord is absolutely right about the SMETS 2 meters. I will write to him about SMETS 1 meters and it might be that he is correct about that. I was only mentioning that as an advantage that will be available in the future to customers.

Lord Lennie Portrait Lord Lennie
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On that basis, I beg leave to withdraw Amendment 3.

Amendment 3 (to Amendment 2) withdrawn.
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Moved by
25: Clause 7, page 4, line 38, at end insert—
“( ) The Secretary of State must within six months of the passing of this Act publish a statement outlining the criteria that are to be used by the Authority in the review to assess whether conditions are in place for effective competition for domestic supply contracts.”
Lord Lennie Portrait Lord Lennie
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My Lords, the history of the electricity market has not been an unbridled success. That is why we are here. We want to ensure with these amendments that Ofgem has the right steer and takes account of the right criteria in determining whether market conditions truly apply. I take the point made by the noble Baroness, Lady Featherstone, that we do not want there to be a permanent cap on tariffs, but the tariff is likely to last longer than is currently scheduled.

I recently had some experience of Ofgem. It contacted me after Second Reading to say that it disagreed with me, which was not surprising, and asked whether I would like to meet and talk about it. I said yes and left a message to say where I was, but I have heard nothing since. If your Lordships have any influence on Ofgem, please use it, because I am still available for discussion should it wish to have it.

What comparable or appropriate market conditions should be in place? We met some of the smaller supply companies. They talked about supermarkets being almost perfect markets: you have choice ranging from price reducers to quality suppliers with everything in between, with the consumer able to shop around and choose where he or she wants to spend whatever amount of money on whatever product. That is true to a degree, except that the likelihood is that you will go to your local producer or supplier.

The comparison to the market for electricity is remote. The market conditions for electricity are that you have monopoly suppliers who supply your energy at a cost that they determine. They supply it at a price to attract the customer—we have heard this before—and then bump up the price once they have you and hope that you do not notice, because you are online, you pay by direct debit and you do not receive communications about that. And so it goes on.

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Lord Henley Portrait Lord Henley
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I am sorry that the noble Lord, Lord Lennie, is having problems getting to meet Ofgem, but I am sure that it is an assiduous reader of our debates and will have noted what he said. In case it is not, I will pass on his message to Ofgem to say that he would be grateful to have that meeting—obviously, I want to be as helpful as possible.

That may assist our discussion on Amendments 25, 26 and 28, which would amend Clause 7 to include matters that Ofgem must have regard to when carrying out its review of the conditions for effective competition. As the noble Lord is aware, the Bill purposely does not define what the conditions for effective competition should be, although, as a major government programme, it requires Ofgem to consider the progress that has been made in rolling out smart meters.

It is right that Ofgem considers the market as it evolves over the next few years. Setting out now in the Bill the factors that it must consider would not be helpful. The BEIS Select Committee agreed with that approach in its report, which states:

“We believe that setting a definition of ‘the conditions for effective competition’ before setting the cap could create incentives for suppliers to game the system or treat the cap as a box-checking exercise rather than going above and beyond their obligations. It would also risk creating unnecessary opportunities for legal challenges”.


The factors set out in the noble Lord’s amendment appear to be broadly sensible. But this is a job that is best left to the regulator and is something that has to be considered in the light of the market as it is at the point that it is being reviewed, not now. Obviously we will have to consider that on different occasions if we have to extend the Bill. I do not see how binding Ofgem to a set of factors would be helpful.

As I made clear earlier and as my noble friend has made clear, Ofgem recently published a paper on the setting of the cap, which is out for consultation at the moment. It includes a consideration of the factors that indicate that the conditions for effective competition are in place and the extensive programme of work aimed at making it easier for customers to engage in the market and encourage them to switch suppliers. Ofgem also set out in its annual report on the state of the energy market an assessment of issues such as barriers to market entry or exit, the level of competition between firms, and the range and quality of service offerings. In its work on future supply market arrangements, it is assessing whether more fundamental changes to the structure of the retail energy market may be needed to allow disengaged consumers to get a good deal. Ofgem has said that it will need to assess which, if any, of these it considers to be crucial to lifting the cap.

Ofgem has said in its consultation paper that it expects to keep these factors under review as the market develops and that it will report on progress in creating the conditions for effective competition, alongside its annual reports on the energy market. It has also said that in order to recommend that the cap should not be extended for another year, it would expect to see sustained progress that would allow it to be confident that currently disengaged consumers could gain a reasonable deal from the energy market without price protection.

I hope that the noble Lord will accept that his amendment is possibly overly prescriptive. Ofgem will consider what is relevant and necessary at the time. I hope, therefore, he will be able to withdraw his amendment. I repeat what I said earlier: I hope he manages to have his meeting with Ofgem and, if he has any problems, he should get in touch with my office.

Lord Lennie Portrait Lord Lennie
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I am grateful to the Minister for his offer of support for my meeting with Ofgem. I am sure it will happen soon—I am sure Ofgem has ears and eyes and can read, so I expect a call fairly soon. I am also grateful that he welcomed the suggestions we have laid out in the amendment and finds them useful as a steer that Ofgem may choose to use. I am not sure that they are the be all and end all, but it is a range of suggestions. I will certainly read the consultation paper Ofgem has put out and respond to it. In the meantime, I am happy to beg leave to withdraw the amendment.

Amendment 25 withdrawn.

Ffos-y-Fran Opencast Coal Mine

Lord Lennie Excerpts
Tuesday 5th June 2018

(5 years, 11 months ago)

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Lord Henley Portrait Lord Henley
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My Lords, I am not going to think again. The 2006 Act is perfectly clear, as are the other Acts offering further powers to the Welsh Government. This is a matter for the Welsh Government, and they have responded.

Lord Lennie Portrait Lord Lennie (Lab)
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My Lords, were the Minister a protestor, who would he aim his protest at? Would it be the local authority or the Welsh Government?

Lord Henley Portrait Lord Henley
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As I said, the Welsh Government have responded to this report. Obviously the original planning application was dealt with by the Merthyr Tydfil local authority.

Domestic Gas and Electricity (Tariff Cap) Bill

Lord Lennie Excerpts
Lord Lennie Portrait Lord Lennie (Lab)
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My Lords, I begin by thanking all noble Lords who have spoken this afternoon. The principle of the Bill is unusually uncontentious and it has considerable support around the House—other than from the noble Viscount, Lord Ridley. However, that is not to say that the Bill cannot and should not be improved.

The Bill arises out of energy market failure and the shortcomings of Ofgem in addressing that failure over the past 20 or 30 years. Successive Ofgem leaders have not addressed the problem. As I understand it, not so long ago Ofgem was considering packing up altogether. It felt that its job was done and that it was no longer needed or significant to the industry. However, that was then and this is now, and we now have a meeting of minds between Labour and Conservatives on the need for such a Bill to come into being.

The current situation is that competition is failing customers. It is allowing market dominance by the so-called big six, who have something like 80% of the market. The biggest slice of the market that a small competitor has had over the last 30 years is about 1%, which does not seem to be enough to invade the market. Maybe 1.5 million customers overall between all 55 competitor suppliers against the big six is a very small number.

Competition was supposed to facilitate cheaper energy costs and to protect vulnerable customers. It was supposed to take away monopoly behaviour by suppliers and to make companies more efficient. Bits of that might have happened, but not in sufficient quantity—and it has not been sufficiently evident to customers in the prices they pay for their energy.

So what do we have? We have pricing that is described as a rip-off. Vulnerable customers are being exploited. They are on prepayment meters and pay higher charges. Until very recently those were capped, as it was very evident that they were being exploited. With 80% of the market dominated by the big six, inefficiency is built into the supply system.

The Conservative Party widely ridiculed Labour in 2013 when we proposed a price freeze. It was felt to be anti-competitive, unnecessary, a backward step and an admission of market failure. So it is hard to understand what the Conservatives say now. It is nice to see a damascene conversion of some sort, but the explanation of that conversion is not clear. We must have a tariff cap for all customers on top of what has already been introduced for vulnerable customers. Has the market significantly changed in the past couple of years to bring about the reversal of policy think? I do not think so. However, the CMA’s recognition that, unless something is done quickly, the ripping off of customers will become intolerable might be the justification that the Government give for introducing this now.

How does the market work? We have heard some accounts from the noble Lord, Lord Carlile, and others about their experience of trying to switch, but the big six’s behaviour goes something like this. You start up on a leader-price, low-price tariff. They get you into the market and then, a year later, they will get you back, in some cases by more than doubling your charges. By the way, the cheaper deals they offer will be withdrawn for you just before you try to find them and renew and take up an alternative to your standard variable tariff. They all do it. Some do it more than others—some are more blatant—but they are all at it. All the big six are at it: monopoly suppliers fleecing largely their customers, until recently the most vulnerable of whom were the worst affected, as they had to have prepayment meters which charged higher rates because the companies had the additional cost of installing the meter. They did not take account of the fact that they actually got an income after installing a prepayment meter, having previously complained that there was no income coming from the most vulnerable customers.

There have been some beneficiaries. Those most able to afford to pay have exploited the market—the noble Lord, Lord Carlile, being one of them. They have made savings for themselves by switching but they are, as someone said, subsidised by those who are unable or unwilling to do so. Four out of five customers each year never do so; they do not have the time, the inclination, the resources or the access to computing to do so. So a large majority of customers have to be punished by paying higher prices. We have recently seen an increase in charges of 5%, or thereabouts, by many of the big six, which is way above inflation and above supply costs. Why is that in the Bill? Why has that become necessary? It is storing up some spare for when the tariff cap comes into effect.

Ofgem was set up to regulate the market against unfair competition, but its track record is not so good. It is cautious, it is safe, and it is ineffective, with instincts which are not to rock any boats in the industry. What is the cost? According to figures produced by the CMA, which may be disputed by certain noble Lords, we are paying £1.4 billion more for energy each year than we should. That £1.4 billion recurs every year that we have the current system in place.

What is to be done? The Bill should allow a bit of control to be brought to bear on the energy market. In order to address this, some questions need to be answered, so I ask the Government the following. Do they have any idea what the level of the tariff cap will be? Will the Secretary of State or Ofgem make the ultimate decision? Will it be a recommendation from Ofgem to the Secretary of State, or will it be Ofgem left alone? Why do the Government envisage that the tariff cap will be necessary only for a short time? We have heard that 2023 is linked to the potential rollout of smart meters. The plan is in some difficulty and I think that it is unlikely to hit that deadline. Therefore, why do the Government envisage it being necessary only until 2020 or 2023?

What would be the effect of smart meters on every customer’s bills? If the cost is £11 billion, what will be the cost in individual customers’ bills? How will the Government know when the market is working or behaving as it should? What indicators will the Government use to make judgments about whether the market is behaving properly? Will the warm home discounts be a requirement for all energy suppliers? Suppliers are currently exempt if they supply fewer than 200,000 households or customers. There does not seem to be any reason why that should be the case. Can that be considered as part of the legislation? Will customers be able to have paper bills at no additional cost, as has already been asked? That is important to older customers in particular. Finally, when will the tariff cap come into place? Certainly, it should be no later than when the clocks go back this year, when winter starts. Winter 2018 has been mentioned, but when does winter start in the mind of the Government?

I started by saying that there was little contention about the need for this Bill, and I remain of that view. But there are many unanswered questions and more detail is required as the Bill progresses through the House. We will know that the Bill has succeeded if customers have something like £1.5 billion to £2 billion returned to them as an effect of the tariff price cap coming into being.

Smart Meters Bill

Lord Lennie Excerpts
Lord Lennie Portrait Lord Lennie (Lab)
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My Lords, I should start by making a declaration—or perhaps a confession. I am a smart meter user. I accepted the offer made by the company. It is a SMETS 1, so it is not doing me much good in terms of reducing my consumption or the cost—but at least I have one. That, I think, may be unique among Members of this House, but not so much so among the wider public. I also thought until yesterday that we might be able to have a debate which did not involve the European Union. However, having seen E.ON’s and RWE’s proposals, we are reminded that this is not taking place in a vacuum and that E.ON will now become the major provider for the customers of electricity while RWE is getting back into green research and the provision of electricity—reversing a decision that was taken before our decision to come out of the European Union.

I thank all noble Lords who have taken part in the debate. I share with everyone their support for the Bill—with reservations, and unfortunately it is those reservations which are going to take up most of my time. I thank in particular my noble friend Lord Grantchester for his analysis at the start of the debate. It has saved me a lot of time because he has already done the work. I shall try to avoid any repetition during the course of what I have to say. I also thank the Minister for the meetings and briefings we have had about the proposals prior to this debate. They have been very helpful in our preparations.

The Bill has three stated interrelated purposes. The first is extending the powers of the Secretary of State in regulations for smart meters. The second is introducing a special administrative regime, the SAR, with a Data Communications Company, the DCC, to ensure that service continues in the event of their insolvency. The third is to introduce new powers to allow Ofgem to facilitate half-hourly settlements.

First, the extension of powers that are currently due to expire on 1 November 2018. The Bill seeks a further five-year period, until 2023, during which time the completion of the rollout of the smart meters and their claimed benefits will have become evident. That is the plan. What are the chances of this and what benefits will consumers see? The rollout requires companies to have offered every household and small business, and there are 40 million to 50 million of them, a meter by the end of 2020. The offer of the smart meter 1 has been slowed down, while the smart meter 2 is in some kind of preparatory phase and is being tested for workability and interoperability. So the chances of meeting the 2020 deadline are fast receding, unless the Government announce some huge increase of capacity to achieve their intention. The benefits to consumers are deemed to be so positive that they will take little persuasion—but, in this House and in other places, the consumer seems less trusting of the benefits than the Government seem to think. The record tells a different story.

Thus far, the second-generation SMETS 2 have been installed in only 70, perhaps 100, households out of a total of 50 million. If the SMETS 1s can be upgraded to SMETS 2 capability, it will account for some of the increase—but it will still need three times the current rate of approach, interchange and offer of these meters to achieve the 2020 deadline.

The benefit for the customer is that he or she will be in control of their pattern of energy usage, with real-time information being provided and an end to estimated billing. That is true: the smart meter tells you how much you have spent today. At any point in time, it will give you a scare. You have spent £5, £10 or whatever it is you have spent today. It does not tell you anything about what it is that is consuming that money. The DCC will be provided with a half-hour readout of the overall usage of our electricity consumption in order to benefit its purchasing power and allow it to more accurately purchase electricity to meet our needs, each half-hour of the day, as I understand things.

That should lead to a reduction in the price it pays at certain times in the day. That will then be passed on to the consumer in reduced billing. Someone talked about half-hour billings; I do not know if that is going to come about any time soon, but we will certainly know when it is cheaper to run certain types of electricity consumption. In order to make those changes, the customer has to be sure of the benefits or they are not going to change anything. They are going to carry on doing what they do at the time they prefer to do it. The chances of the lower-end pre-paid customer changing their habits, given the other pressures that there are in their life, are more remote than for those who perhaps have more time on their hands, can study these things and can make adjustments to habits that have been ingrained for some years, as they go through life, with family, children who move away and so on.

How will the Government force the energy companies to pass on savings that they will make to the customers? There was some talk in the energy committee in the other place that the Government will make sure that this happens, but how do they intend to enforce it? The Energy Minister in the other place quoted Richard Nixon, who said:

“If you’ve got them by the balls, their hearts and minds will follow”,—[Official Report, Commons, Smart Meters Bill Committee, 23/11/17; col. 73.]


but if you have not, they are not going to. That is about the size of it. I am not sure that the squeeze is happening quite where it needs to happen. Do the Government anticipate a change of heart among the energy companies towards their customers? That is unlikely. They are private businesses; they are in business to make a profit. That is their right and that is what they are set up to do. Their shareholders are their principal guides and they expect a return. It is hard to see where the customer fits into the squeeze there might be on the price of electricity to suppliers. The Government need to think through how the customer benefits are to be realistically delivered.

Another thing concerning the change in our pattern of usage of night-time electricity for white goods is that there are increased risks that the Government should be aware of. Household fires are more likely with unsupervised white goods. Nuisance neighbour noise disputes will be on the increase as energy powers machines at night, particularly in places where people live one on top of another, in blocks of flats and so on. So the attractions of changing patterns of usage of electricity may not lead to the greenfield nirvana the Government seem to believe in.

One of the things that might have been possible—maybe the Minister will comment on this—was the Government taking responsibility for providing the customer with tariff information. Would it have been possible under SMETS 1? Is it possible under SMETS 2? SMETS 3 could possibly, if it has not been thought of before, inform customers about their best possible energy price sources. It is hard enough right now to know exactly where my best deal is, comparing tariffs within one supplier, let alone across a range of suppliers, with six major companies and a number of other minor providers. It is a complicated matter. Could the Government introduce this into the SMETS system and pass on the information to customers? That would be a real benefit and a real selling point for the meters being accepted by more customers.

I turn to the DCC. The Government intend the regime to take back control should the company go into administration. A special administration regime is to be established. The provocation for this lies somewhere between the recent failure of Carillion, an oversight in the original setting up of the DCC and doubts about the performance of Capita, the current DCC operator. If the DCC fails, the customer will foot the bill. The risk of failure is said to be extremely low. However, the impact would be high. Could the Government provide some analysis or report to reassure us that the DCC’s remote chances of failure are so unlikely that no one can see it happening? What happens if the DCC decides to walk away from the contract? Are there penalties? What are they? Might the Government be left high and dry, not by the failure of the company but by the company no longer wishing to provide the service because it does not believe it will meet the 2020 deadline, let alone those beyond it?

These are some of the questions. We support the Bill. It is deficient in some areas and these will be explored more as we go through Committee and Report, but I would be grateful if the Minister could answer some of the questions raised so far.

Lord Henley Portrait Lord Henley
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My Lords, on the last or second to last point made by the noble Lord, Lord Lennie, he looked forward to a world with a SMETS 3 or 4 that might be able to assist a customer in finding a new supplier and direct him in that way. I think we are already there. I imagine that the noble Lord reads the Guardian more often than I do, but the Guardian of 11 March was talking about one company that is developing some sort of dongle that can be plugged into one’s meter and will automatically switch one to the best supplier according to the programme one puts in. One can put in, “I want the greenest supplier” or “I want the cheapest supplier” and one could find oneself having a different supplier from month to month, possibly two or three times a year. The future is good. I refer the noble Lord to that article to see just what is happening out there and what smart meters, as they are at the moment, could possibly lead to.

I have to say that, listening to the debate, I felt that it was a fairly Eeyoreish performance, even by the standards of this House. The noble Baroness, Lady Featherstone, was politer—she referred to it as a masterclass in faint praise. The noble Baroness, Lady Maddock, was, as always, very kind to me: after making her Eeyoreish speech, along with her colleagues and all other noble Lords, she said that she expected something more optimistic from me, “Because the noble Lord always is very optimistic”. I think there is nothing wrong with being optimistic when one has technical developments that are going to bring great benefits to everyone. They are going to bring benefits to the consumer, as I made clear in my opening speech, but they will also bring benefits in terms of reducing our overall consumption and in many other ways.

Like the noble Baroness, Lady Featherstone, I was very amused by the picture of her noble friend Lord Teverson under the floorboards or somewhere—I am not quite sure where he was; it was rather a confusing picture, but he was in the rain with a torch. All I can do is refer the noble Lord to Hilaire Belloc’s “Lord Finchley”. The noble Lord will remember that Lord Finchley came to an untimely end because he tried to do these things himself. In future, the noble Lord can get someone else to look at these things, but smart meters will solve the problem for him.

Others, such as the noble Lord, Lord Whitty, and me, took us back to 2008. I was very grateful to him for doing that and for saying that back in 2008 he was giving warnings, in his Cassandra-like way, and now he could say, “I told you so”. The great thing is that he can say “I told you so” to everyone here, in that the 2008 Act, as the noble Lord and others on the Benches opposite will remember, was passed under a Labour Government. The 2011 Act that I referred to was passed under the coalition Government. I think that we had a Liberal Democrat in both the business department and the energy department during that time, so their fingers must have touched this at some point. Now, in 2018 we have a Conservative Government, so perhaps, like Peter Simple’s Dr Heinz Kiosk, I can just say, “We are all guilty!”, if something has gone wrong. I think, from the degrees of optimism I have listened to in the course of the debate, that there is a general acceptance that smart meters are going to be able to do something that has not been available before and that, as I said, that will bring great advantages to us.

A very large number of questions of a fairly detailed sort have been raised and I will try to address a number of them. However, I think that what a debate of this sort also shows is that even a Bill such as this—a Bill that is broadly welcomed on all sides, that has been through pre-legislative scrutiny, that has had a very useful trip through another place since that pre-legislative scrutiny and that is now here—will benefit from what your Lordships can do in Committee. I look forward to that Committee and hope that we can tease out just where the problems are so that I can give appropriate assurances on matters that are relevant to noble Lords and, if necessary, make amendments, but I do not think that that will be necessary. As the noble Lord, Lord Grantchester, put it, this is a largely technical Bill dealing with three small matters, but its title allows us to discuss the generality of smart meters, smart metering and how we get the rollout completed. I hope that in the course of this debate, Committee and further stages we can continue that process and provide the proper assurances.

This afternoon, I propose to answer a few of the questions to the best of my ability. I think it would be useful if I write another letter to all noble Lords who have taken part in this debate and place a copy in the Library, setting out a more detailed answer of the sort that one cannot properly give to some of the more detailed questions and very sensible suggestions made by my noble friend Lady Manzoor. I give that assurance that I will send that detailed response to all noble Lords.

In the meantime, I shall answer a few of the questions that have been asked. The first, and most important, is to give some sort of assurance that we believe that it is still possible, despite the numbers which the noble Lord, Lord Grantchester, quoted from Which?. The numbers probably appeared in the Daily Mail as well, for all I know—that was another publication that was mentioned. We believe that we will be able to get there in due course. The rollout to date has been growing. Around 400,000 smart meters are being installed every month. That has to get up to a bigger figure if we are going to get to the end in the three years that are available. I do not think that is representative of the next phase of the programme when most suppliers will be installing smart meters with greater numbers of installers and more types of customers across Britain. We will certainly continue to collect data—this was something that the noble Baroness, Lady Maddock, asked about—on the rollout, getting independent, official, quarterly statistics on progress by the large suppliers, and we will make sure that they are published quarterly, as I think they have been since September 2013. In addition, a summary of the annual rollout progress for the calendar year is published every March, so we should have that in due course. I do not know whether it will be before Committee, as no one has yet given me a suggested date for the next stage of the Bill.

Taylor Review of Modern Working Practices

Lord Lennie Excerpts
Tuesday 11th July 2017

(6 years, 10 months ago)

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Lord Prior of Brampton Portrait Lord Prior of Brampton
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I will have to respond to my noble friend by letter.

Lord Lennie Portrait Lord Lennie (Lab)
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The Minister expressed surprise that there had been so little change in employment over the period: 63% and 64% were the figures given. But that masks the fact that currently in the north-east something like 70% of all new work—jobs growth—is defined as insecure work. Does that not indicate the need for more assertive action from the Government to address what is very rapidly coming round the corner at us?

Lord Prior of Brampton Portrait Lord Prior of Brampton
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I assume that the noble Lord means that what is coming around the corner are the new technologies and artificial intelligence—the digital economy, if you like—which are going to have a big impact on the labour market. Andy Haldane, the chief economist of the Bank of England, is predicting that, I think, 17 million existing jobs will disappear as a result of new technologies. Other people say that the new technologies are nothing like as profound as some people think they are and that the impact will be a lot less. Nevertheless, if we are going to thrive in this digital age, we have to skill people to do so. We need a much more digitally literate and technically well-trained workforce. I am sure that that will be something that will be a key part of our industrial strategy.