Energy Bill Relief Scheme Regulations 2022

Lord McCrea of Magherafelt and Cookstown Excerpts

Wednesday 16th November 2022 Grand Committee

In response to the noble Baroness, Lady Hoey, who asked about the substantial differences between the Northern Ireland and Great Britain schemes, they are essentially similar, but the Northern Ireland scheme’s delivery approach diverges slightly from GB’s in that it requires suppliers in Northern Ireland to abide by obligations in the regulations enforced by the Northern Ireland utility regulator, UREGNI—I am sure the noble Baroness is more familiar with that than I am. The regulations reflect this and the role of the Northern Ireland utility regulator in enforcing the schemes. There are a number of other technical differences, including an additional contract type, the day ahead index price contract, and there is an extra discount recovery process in Chapter 4 to prevent a Northern Irish recipient of supply eligible for the EBRS NI from then passing on that reduction to an end user in the Republic—which I am sure is something the noble Baroness would strongly support.

[Lord McCrea of Magherafelt and Cookstown (DUP)]

I listened to what the Minister said and return to a point raised by the noble Baroness, Lady McIntosh. Do I take from the Minister’s remarks that there is going to be a review after the winter period that is covered by the present legislation? There are many small businesses scattered across the community in Northern Ireland that are totally dependent on electricity and have therefore met this volatility in energy prices. It is hard for them to plan for the future without knowledge of where we will go after the short period covered here. How long does the Minister think the review will take, because these businesses certainly need to plan for the future?

[Lord Callanan (Con)]

The noble Lord makes a very good point. As I said, we will conduct a review as soon as possible with the aim that it will be published before the end of the year. That will inform businesses of where we hope to go with the scheme after its expiry in April. That applies not just to businesses in Northern Ireland but to small businesses across the whole United Kingdom.

In conclusion, the Government remain committed to ensuring that consumers receive help with the rising cost of living and with energy costs. These regulations are vital to ensuring that support is delivered this coming winter. I commend this draft instrument to the Committee.

Energy Prices (Domestic Supply) (Northern Ireland) Regulations 2022

Lord McCrea of Magherafelt and Cookstown Excerpts

Wednesday 16th November 2022 Grand Committee

[Lord McCrea of Magherafelt and Cookstown (DUP)]

My Lords, I want to reiterate the point raised by my noble friend Lord Browne, that a vast proportion of Northern Ireland is reliant on heating oil and not on gas or electricity for heating their homes. That is the case especially in rural Northern Ireland, which is a vast area. Many of our elderly certainly rely on it, as do those who are disabled. The payment towards heating oil—I think £100 was mentioned—is totally useless and verging on an insult to those in such need, especially as they face the winter.

As the Committee knows, domestic consumers are very concerned about the £400 payment. I trust that the Minister will be able to answer this. The previous Prime Minister confirmed that the £400 energy bills discount would be paid to householders in November and backdated to October. I believe that the Chancellor has also reaffirmed that it will be received by families before Christmas. I heard one Minister say today that you cannot believe everything you read in the papers, when she was speaking about the names of possible Peers in a couple of years’ time. There is talk that the payment may not now arrive until January. Could we have some clarification on this? Certainly, two Prime Ministers and past Chancellors and Secretaries of State have confirmed that the payment would be made in November and at the latest before Christmas. Could we have confirmation of that, as it is concerning a lot of people?

[Lord Teverson (LD)]

My Lords, I thank the noble Lord, Lord Browne, for explaining the details of the Northern Ireland energy market. I did not realise that it was quite so complicated, as it sometimes is here with multiple suppliers, and so on.

I want to make two points. The first has already been covered by noble Lords—the predominance of oil provision in Northern Ireland and how that is dealt with. Despite the strong competition, I suspect that the £100 is far from enough in being able to compensate those rural households for their energy costs.

Secondly, as the Minister will be well aware, there is a single electricity market in Northern Ireland. The grids are integrated. As noble Lords have said, it is separate from the British system. Are there any potential issues in relation to differential charging either side of the border? There may be no issues—

--- Later in debate ---

[Lord Callanan (Con)]

I thank all noble Lords for their contributions to the debate. The Government have implemented the EPG Northern Ireland scheme to ensure that consumers are protected from excessively high energy bills over the winter period, and I am sure that is something the Committee supports. The Committee will be reassured to know the scheme is already in force and delivering support to households across Northern Ireland. I hope this will also go some way to assuring the public that the Government are committed to taking decisive action to deal with the energy crisis.

As well as providing immediate relief, this scheme, alongside the EBRS, will support economic growth and limit inflation caused by increasing energy bills and their knock-on impact on prices, labour, goods and services. The scheme has been designed to operate robustly and guard against fraud and gaming, and we will continue to monitor the schemes to ensure that support is provided and limited to those people and businesses who it is designed to help. We are committed to reviewing the schemes and we will consider how best to offer further support to the customers who are most at risk to energy price increases beyond April 2023.

In response to the questions raised, I will concentrate first on the point made by the noble Lord, Lord Browne, about heating oil. The noble Lord will be aware—and this was raised also by the noble Lord, Lord McCrea—that the alternative fuel payment will provide £100 to support households who do not use mains gas for heating. This alternative fuel payment is in addition to the £400 that households will receive through the energy bills support scheme. This applies in Northern Ireland and is designed to compensate for the rise in the price of heating oil from October 2022 in a way that is equivalent to the support received by people who heat their homes using mains gas and receive their support via the energy price guarantee. As the £100 alternative fuel payment is designed by reference to the increases in the price of heating oil and other alternative fuels that happened from September 2021 to September 2022, the Government are committed to continuing to monitor the prices over the coming months and we will consider further intervention if it is required to protect UK householders from extraordinary fuel prices.

The noble Lord, Lord Browne, further asked about unregulated electricity providers in Northern Ireland. Of course, the regulation of prices is a matter for UR, the regulator in Northern Ireland. The noble Lord is right that some electricity suppliers in Northern Ireland are not price regulated. It is a competitive market, but the EPG applies to all suppliers equally—the same discount applies to all.

The noble Lord, Lord McCrea, asked for clarification on backdated payments. The £400 EBSS will not be backdated, as it is paid as a flat sum. The EPG is, of course, backdated via an additional pence-per-kilowatt payment on top of the base EPG rate from November to March.

The noble Lord, Lord Teverson, also raised a point about the particular predominance of the oil provision in Northern Ireland; I think that I answered that in response to the noble Lord, Lord Browne. On the point regarding the single electricity market in Northern Ireland, there is no problem here. The measures that we are implementing are designed to support domestic consumers in Northern Ireland at the supply level as they relate to the retail market and do not impact on the underlying wholesale market. Therefore, they have no effect on the workings of the single electricity market.

The noble Lord, Lord Lennie, raised a point about metering and tariff arrangements and the scope of the impact on the number of non-domestic premises that have been brought into the EPG. In addition to places of worship, he questioned what other premises are included. I can confirm to him that some farms and small businesses are included. In respect of small businesses, it is those that are operating from former dwelling-houses. In reality, very few premises are affected—possibly fewer than 100 non-domestic premises are in scope—and the EPG and the EBRS of course provide equivalent support.

The noble Lord went on to ask about meter data. We are continuing to plan for and assess the use of personal data provided under the scheme documents in Northern Ireland and Great Britain. Obviously, as part of this work we will ensure that we comply with any relevant legal duties under the smart meters Data Access and Privacy Framework, so the data will be used only when necessary to calculate support payments and, of course, to ensure the good use of public money, which I am sure the noble Lord will support.

With that, I think I have answered all the relevant questions—

[Lord McCrea of Magherafelt and Cookstown (DUP)]

I do not think I heard a response from the Minister on whether the payment that was promised—the £400—would be coming out to the people of Northern Ireland before Christmas.

[Lord Callanan (Con)]

I cannot give the noble Lord a precise date for that now; we are working to implement it as quickly as possible. As soon as I can provide him with further information on that, I will do so. However, we are working as fast as possible, and we are aware of the urgency of the situation. We know that the money is required, and we will get it out as fast as we possibly can.

I commend the regulations to the Committee.

Post Brexit: Small Service Businesses

Lord McCrea of Magherafelt and Cookstown Excerpts

Monday 24th May 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Lord makes a good point. This is a complicated area. We are upgrading existing GOV.UK guidance on the immigration systems of EU and EFTA member states to help businesses adjust to the new requirements. The first tranche of these guides is available now, and from 1 January 2021, for short stays of up to 90 days in any 180-day period, UK nationals will not need a visa when travelling to and within the Schengen area to undertake a limited range of activities.

[Lord McCrea of Magherafelt and Cookstown (DUP) [V]]

Now that a free trade agreement with the EU is in place that enables the selling of equipment into Europe, what discussions have been held that would aid the removal of the 90-day restriction that is an impediment to UK experts being able to service the equipment or machinery that has been sold?

[Lord Callanan (Con)]

I understand the noble Lord’s concerns but we have reached a balanced deal with the EU similar to the EU’s agreements with Canada and Japan, and the TCA is the basis of our agreement, so I am sorry to tell him that this will not be renegotiated.

Gas Boilers and Heaters: Replacement Programme

Lord McCrea of Magherafelt and Cookstown Excerpts

Tuesday 12th January 2021 Lords Chamber

[Lord Callanan (Con)]

I point the noble Baroness to the social housing decarbonisation fund, which will deliver transformational change by upgrading a significant amount of the social housing stock that is currently below EPC up to that standard.

[Lord McCrea of Magherafelt and Cookstown (DUP) [V]]

In recognising the Government’s desire to reduce greenhouse gas emissions throughout the United Kingdom, one must also recognise the need to ensure that the transition is fair to householders and businesses. Therefore, can the Minister tell the House what detailed study has been done to identify any additional costs there will be to run any new heating system? How can we ensure that those living in poverty will be able to bear that financial burden and keep their families warm?

[Lord Callanan (Con)]

The noble Lord is right that we need to make sure that the change is affordable. We have a number of schemes to help low-income families. We have the ECO scheme and the green homes grant scheme, both of which considerably incentivise low-income families to make these changes.

United Kingdom Internal Market Bill

Lord McCrea of Magherafelt and Cookstown Excerpts

Committee stage & Committee: 5th sitting (Hansard) & Committee: 5th sitting (Hansard): House of Lords
Monday 9th November 2020 Lords Chamber

[Baroness Noakes (Con)]

My Lords, I am speaking today because I believe that the clauses that the noble and learned Lord, Lord Judge, and other noble Lords oppose are wholly in the United Kingdom’s national interests and, importantly, wholly in the interests of our fellow citizens in Northern Ireland.

Part 5 of the Bill represents a sincere attempt by the Government to protect the Good Friday agreement and peace on the island of Ireland. If the way in which Northern Ireland has to operate within the United Kingdom is harmed, it would follow that peace and reconciliation within Northern Ireland will itself be harmed. The Northern Ireland protocol explicitly recognised that Northern Ireland would remain within the UK’s customs territory and internal market. This is crucial for Northern Ireland, as nearly 50% of its exports go to the rest of the United Kingdom. This is more than double the amount exported to the Republic and four times the amount exported to the rest of the EU. Trading within the UK’s internal market is not an optional extra for Northern Ireland. An east/west trade border in the Irish Sea is bound to have an adverse impact on the Northern Ireland economy, and economic weakness would not take long to translate into political tensions.

The practical issues of trade with Northern Ireland—for example, how the risk of goods entering the EU via Northern Ireland will work—have not yet been agreed in the Joint Committee. There is no guarantee that an agreement will be reached and, if there is no agreement, a number of harmful consequences—for example, in relation to third-party listing of agricultural products—could well follow. I understand that these have been threatened by the EU. Faced with this uncertainty, I believe that this Bill is a responsible approach by the Government to protect the interests of the United Kingdom, particularly the interests of Northern Ireland.

The Government could have waited until real harm was done in Northern Ireland, economically and politically, but that would be to court disaster. The Government have not waited until they on a burning platform. Instead, they have taken the pragmatic approach of providing a contingent power in the Bill to be activated only with the consent of Parliament and used only if the dispute resolution procedures fail.

I ask noble Lords whether they would still oppose Part 5 of this Bill if the Government sought to legislate in the face of actual, rather than prospective, harm. Would concerns about the rule of law really stop noble Lords voting through whatever was necessary to protect the UK’s economic interests and peace in Ireland at that point? I do not think so. I do not think that the rule of law is the relevant point. I am not sure that what the noble Lord, Lord Pannick, said really answered the challenge on this from my noble friend Lord Lilley. If noble Lords can accept that the national interest might require us to break an international agreement in the face of actual harm, in logic they ought to support this proportionate approach to protecting the union, as well as stability and prosperity in Northern Ireland.

Lastly, I ask the opponents of Part 5 to answer one simple question: would noble Lords object to a similar power if it allowed a breach of a treaty with a state which was now an international pariah, or is the heart of opposition to Part 5 intimately linked to the fact that the EU is the counterparty to the treaty which we might need to break? I urge noble Lords to avoid unconscious bias, whether or not driven by remainer nostalgia, and put the protection of the UK, the union and peace in Ireland first.

[Lord McCrea of Magherafelt and Cookstown (DUP)]

My Lords, like the noble Baroness, Lady Hoey, I have no claim to being a lawyer, nor the son of a lawyer, but I come with 50 years of experience as a minister of the gospel in the thriving congregation in Northern Ireland and 42 years as an elected representative of the people of Northern Ireland. I have been with the people of Northern Ireland through very difficult and trying times, as well as times of joy.

I was not one of those who negotiated the Belfast agreement, nor, truthfully, did I support those who did. However, I accept the reality of its existence. Throughout the internal market Bill’s progress through this House, much has been made of certain clauses’ breach or a threatened breach of international agreement. However, it is interesting to note that those who negotiated it, some of whom are Members of your Lordships’ House and were its chief architects, do not believe that these clauses do so.

The withdrawal agreement, as it was introduced, was bad for Northern Ireland economically and constitutionally. In the other place, my colleagues repeatedly pressed the Government for change; they focused attention on the flaws and the importance of protecting Northern Ireland’s interests, as I am sure noble Lords would expect them to do. This Bill is a step forward, a recognition by the Government of the defects of the Northern Ireland protocol and its impact on the internal market of the whole United Kingdom. However, more work has to be done.

The party I belong to has been focused on ensuring that consumer choice and costs are not impeded as a result of the protocol. It is vital that Northern Ireland businesses have unfettered access to the market of Great Britain, which is so important for the Province, and this Bill sets out potential helpful steps in that respect. However, I noted the noble Lord, Lord Newby, saying “Let us not hear of unfettered trade—there will be none”. That will certainly have serious implications in Northern Ireland, if it is true.

I recently read with interest that several right reverend Prelates and other bishops wrote to the Prime Minister stating that this legislation would set a disastrous precedent and that:

“If carefully negotiated terms are not honoured and laws can be ‘legally’ broken, on what foundations does our democracy stand?”


I found that somewhat interesting, because several times in this debate I have heard about “moral responsibility” and “morality”, and how this is “immoral”. I must remind this House that I stood here some months ago where, whenever we talked about the moral issue of same-sex marriage, the Benches of the right reverend Prelates were empty. Whenever we discussed the moral issue of the most liberal abortion laws that were forced on the people of Northern Ireland against their democratically expressed will, where was morality talked about then? I do not know of any letters being written to the Prime Minister on the importance of this moral imperative.

We know that those changes were made to placate Sinn Féin as a pay-off to get them back into the Northern Ireland Assembly. When we talk about such issues, I would like such letters to be written to the Prime Minister in the midst of our present national crisis with Covid-19 to encourage him to call for a national day of repentance and prayer, acknowledging our need of God’s help and deliverance in our time of great distress, as I did in March at the beginning of the pandemic.

However, returning specifically to these groups of amendments, the EU is failing to honour its own commitments as set out in the withdrawal agreement. The Northern Ireland protocol states in Article 1 that it is

“without prejudice to the provisions of the 1998 Agreement in respect of the constitutional status of Northern Ireland”.

It also states that it

“respects the essential State functions and territorial integrity of the United Kingdom.”

I remind Members of this House that, for the majority of the people of Northern Ireland, the integrity of the United Kingdom is of paramount importance.

Indeed, yesterday, across the United Kingdom, we remembered the fallen of two World Wars. In Northern Ireland, we also remembered all those innocent people across the community who were slaughtered by a vicious and callous murder campaign. Over the years, thousands of our citizens have died—yes, British citizens have died—and tens of thousands have been injured because Northern Ireland’s ordinary law-abiding people refused to be terrorised out of the United Kingdom. That is what we believe is precious to us.

Those who are beholden to the Northern Ireland protocol ignore its threat to the household prosperity of every corner of Northern Ireland. The Freight Transport Association estimates that 70% of some 425,000 lorry crossings every year are destined for so-called dead-end hosts—that is, supermarkets, retail outlets, car showrooms et cetera in Northern Ireland. If those movements are subject to checks, these businesses will feel real pain and real financial loss, but I wonder whether people really care.

Free access to the internal market is a foundation block of the union. The 1707 articles of union between England and Scotland and those between Great Britain and Ireland in 1800 abolished all customs duties between the different parts of the United Kingdom. They also declared that citizens of all parts should be on the same footing in respect of trade and navigation and in all treaties with foreign powers. Does not the withdrawal agreement breach this? A single, unified internal market is therefore a key block in the constitutional foundations of the United Kingdom.

In my opinion, for the EU it was never about protecting peace in Northern Ireland. It has been using Northern Ireland to punish the United Kingdom, as was stated by Monsieur Barnier. Sadly, many others, whether willingly or without realising it, are being used in that cause. For those who support the protocol, the destruction of the UK’s internal borders and household prosperity is simply collateral damage.

Amendment 161 would require the Secretary of State to

“publish a statement on the impact … on … peace and reconciliation in Northern Ireland”

through the exercise of Clause 44. From whom would a threat to peace come? Those of us who have lived under the threat of IRA terrorism for over 30 years—personally—and our families do not want to see terrorism rise again. However, we must not be held to ransom because of the threat from those who have lived all their lives to make Northern Ireland a failed political entity. They made no apology for that being their belief and carried out their terrorism on that basis.

I want to see every part of Northern Ireland bear the fruits of prosperity—prosperity enjoyed by every section of the community. I believe that that is best served within the union of Great Britain and Northern Ireland. Surely those proposing Amendment 162 are speaking out of both sides of their mouths. On the one hand, they want to avoid barriers to trade between Northern Ireland and Great Britain, yet in several other amendments, they would dictate that the Government must not use the powers set out in the Bill if they counteract the protocol. In effect, that requires customs entry and exit declarations. They ought to come clean and stop being disingenuous. If this amendment is to be acceptable, surely there is a need for continuity throughout the Bill.

Enterprise Act 2002 (Specification of Additional Section 58 Consideration) Order 2020

Lord McCrea of Magherafelt and Cookstown Excerpts

Wednesday 15th July 2020 Lords Chamber

[Lord McCrea of Magherafelt and Cookstown (DUP) [V]]

My Lords, I thank the Minister for laying out the Government’s case for the addition of a public interest consideration to the Enterprise Act 2002, with specific reference to maintaining in the UK the capability to combat and mitigate the effects of public health emergencies. I acknowledge that much has been done by the Government to protect UK citizens during these long and weary months of the pandemic, and we must always be on the alert for any loopholes in legislation. The situation as it already stands allows the Government to intervene in qualifying mergers and acquisitions on the grounds of national security and media plurality, and the previous Labour Government added financial stability following the financial crisis.

It must be acknowledged that foreign investment has provided many valued jobs in recent years, especially in Northern Ireland. It is imperative that we keep an open economy, especially when we endeavour to present ourselves to the world as a global player seeking beneficial free trade agreements with many other countries, having removed ourselves from the shackles of the EU.

I accept that many formerly successful businesses of varying sizes have suffered in terms of financial profitability because of the present Covid-19 crisis and may be vulnerable to takeover bids. This addition to Section 58 of the Act allows the Government to intervene to maintain the UK’s capability to stop unscrupulous investors advancing self-interest at the expense of the welfare of the British public. Therefore, I feel the measure proposed is timely and appropriate, and I support it.