Smart Meters

Lord Lennie Excerpts

Monday 10th February 2020 Lords Chamber

[Lord Duncan of Springbank]

The noble Baroness is correct to state that there have been some challenges in the rollout of the smart meter programme. I will say no more on that particular point, but there is a recognition that smart meters are vital if we are to meet net zero by 2050. They will remove some 45 million tonnes of carbon dioxide by 2034 if they work well, thus also bringing about substantial savings for customers and the nation.

[Lord Lennie (Lab)]

The Minister’s predecessor, the noble Lord, Lord Henley, wrote to me about this in July 2019. He said that the 13 largest energy suppliers had submitted plans to cover the rollout for 2019-20 and that,

“underpinned by a strong evidence base, plans are now in place and define binding milestones that those suppliers will be held to account against in 2019 and 2020.”

Just 18 months since the legislation was passed and seven months since I received that letter, the binding milestones that were in place seem to have gone off again and the target they would have to reach by the end of 2020 has been delayed by four years to the end of 2024. Does the Minister agree that public confidence in the smart meters programme has been badly damaged by the delays and failure of government policy? Can he say what the Government’s current estimate is of how much each household will benefit if and when they get a smart meter 2 that works and is operable? Finally, on a scale of one to 10—popular in the Labour Party these days—how confident is he that households and businesses will have a properly functioning smart meter installed by the end of 2024?

[Lord Duncan of Springbank]

In order, the answers are no, £175 per year and 10—but I think the noble Lord will want a bit more detail than that, so I will give him that. The important thing is that once smart meters are installed they make a significant difference. People begin to understand what they are consuming in electricity and gas and they see it in pounds and pence, not in kilowatt hours, which are more challenging. The rollout has been difficult, because Great Britain’s housing stock is wide and diverse, as is its topography. That has been a challenge as well. We have been trying to ensure that we learn lessons as we go. We will end up by the end of 2020 with some 27 million smart meters working in households. That will be critical.

Nuclear Power: Emissions

Lord Lennie Excerpts

Tuesday 14th January 2020 Lords Chamber

[Lord Duncan of Springbank]

As part of my responsibilities as Climate Change Minister, we have engaged with a number of countries to examine what prospects we have to ensure the development of the small modular reactors, which we believe will be key to the development of a workable global strategy. We commit to continuing to do that at a greater pace.

[Lord Lennie (Lab)]

How will the Government ensure that any new offshore wind capacity during the 2020s will not simply replace retiring nuclear plants rather than push carbon-emitting gas power plants off the grid?

[Lord Duncan of Springbank]

The noble Lord is quite right: each of our ambitions in these areas has a finite lifespan, and it is important to make sure that, each time we replace them with the next generation, the carbon footprint decreases. We would like to see it significantly decrease, which is why offshore wind remains vital and why nuclear has a significant part to play.

Electricity Supplier Obligations (Excluded Electricity) (Amendment) Regulations 2019

Lord Lennie Excerpts

Wednesday 23rd October 2019 Lords Chamber

[Lord Teverson (LD)]

My Lords, I am interested that the Minister did not mention carbon leakage, because that is absolutely the core of what this is about. It is about reducing our own carbon footprint. If industry migrates to China or to south-east Asia, that has no effect in any way on global emissions even though it reduces our carbon footprint. At that point we lose employment and all the advantages of business that he outlined.

There is a completely different and topical approach to this issue. Professor Dieter Helm, in his report earlier this year or at the end of last year to the department, said that one of the things that needs to happen if we are serious about electricity prices, energy prices and a carbon-neutral economy is that we should have external carbon tariffs. On our European position, whether we are inside or outside, it is interesting that the President-elect of the Commission, Ursula von der Leyen, said that external carbon tariffs were a way forward as a core part of her Green Deal package for Europe. Whether we have equivalence when we are outside is another question.

Has the Minister’s department looked at all strategically at this question, rather than fiddling around with which industry, sector, business, conglomerate or corporate should be in this definition? I have no idea why flour milling should be, but it is great that it needs to be. I have no argument with that. I have not come across that industry in this context before. Would moving forward in this external way not solve all these problems at a stroke? I suspect that a lot more might be produced internationally, but it seems the direction of travel.

I am not sure that the Minister mentioned businesses in distress, which are now excluded from this for state aid reasons. I do not necessarily disagree with it, but I want to understand it more. Has that exemption been used in the past? Perhaps we can understand some examples and what effect it had.

[Lord Lennie (Lab)]

The contracts for difference scheme demands that certain high-energy industries pay what is in effect a tax to fund a levy to help subsidise and encourage the generation and production of renewable electricity. Within the scheme, energy-intensive industries, or EIIs, can apply for an exemption from having to pay. This SI adds flour milling to the list of those industries eligible to apply for an exemption, to help the milling industry remain internationally competitive—what you might call flour power.

The SI also seeks to hasten the responsiveness to applicants seeking such exemptions. Where a meter is used for shared purposes either within or between companies, it allows speedier and more accurate removal from the scheme of those activities which do not qualify for such a reduction. It extends EII certificates from the end of March to the end of June each year, giving business more time to report and lessening the chance of a gap between reporting and granting of exemptions

I have some questions. Does the scheme apply to all flour millers and all flour milled, or is it restricted to flour milled for the human food chain only? Graded grains make finer flour, as the phrase goes. Is the scheme just for human-chain flour, or is it for other flour used for animal feed purposes? Is the Minister satisfied that the changes proposed in the scheme will ensure the long-term future of the flour milling industry internationally as well as helping to stabilise food security post Brexit?

The next review of the EII scheme is not due until 2023. Given the Government’s welcome shortening of their climate change targets, should not this review also be brought forward to determine any revisions that may be necessary to the scheme to help meet these obligations?

I understand that the feed-in tariffs scheme closed in April 2018, so why does paragraph 2.3 of the Explanatory Memorandum state that eligible EIIs,

“are also eligible for reductions in the costs of funding two other policies that support renewable electricity generation, namely the Renewables Obligation (RO) (in England and Wales and in Scotland) and the small-scale Feed-In Tariff (FIT) schemes”?

If that scheme has closed, why does the Explanatory Memorandum use an active word, or has the scheme been replaced and renewed in ways that we have not yet heard?

The Government announced a control mechanism for low carbon levies in 2017: in effect, that they would have to prove that they were value for money. Can the Minister provide any up-to-date assessment of that decision?

[Lord Duncan of Springbank]

It has been a remarkably short and sweet debate. Long may such debates continue. I say to the noble Lord, Lord Teverson, that I did mention carbon leakage, as it happens.