Great British Energy Bill

Lord Murray of Blidworth Excerpts

Committee stage
Monday 13th January 2025 Lords Chamber

Moved by

[Lord Murray of Blidworth]

85D: Clause 6, page 3, line 38, at end insert—
“(1A) The Secretary of State must give a specific direction to Great British Energy that it must invest in additional energy storage infrastructure to store excess renewable energy.”Member’s explanatory statement
This amendment would require GB Energy to invest in storage for excess renewable energy with the intention of reducing the cost of curtailment of renewable energy in instances of excess supply.

[Lord Murray of Blidworth (Con)]

My Lords, I rise to speak to Amendments 85D and 85E in my name. I regret that I was unable to speak at Second Reading, but I am pleased to be able to take part in this debate in Committee.

My amendment seeks to address a lacuna in the Bill. As many noble Lords before me have observed, the Bill lacks a vital detail. Parliament is being asked to approve the establishment of a vehicle for the investment of £8.3 billion of taxpayer money, and yet we have no clarity on how this money will be spent. All these decisions will be for Great British Energy to make under the direction of the Secretary of State. We believe that this is a most unsatisfactory way to proceed, and my amendment seeks to probe the Government’s intention on energy storage, as well as giving the Government the opportunity to improve the Bill with a clear statutory duty to invest in energy storage.

Just last Thursday we had a debate in this House on the importance of energy storage, and I agree with the amendments that my noble friend Lord Lilley has tabled. Improvements in energy storage infrastructure will be crucial if we are to continue on our journey to greater reliance on renewable sources of energy. I am pleased that the noble Baroness, Lady Gustafsson, has recognised the importance of energy storage as part of our path to clean energy, as she did last week when she said the Government

“recognises the value of strategic energy reserves as a source of energy resilience and security of supply, balancing system flexibility, particularly during periods of energy supply shortage”.—[Official Report, 9/1/25; col. 845.]

Given the importance of investing in energy storage as part of our long-term strategy, we should surely put this at the centre of this Bill. In fact, the objects of GB Energy, as outlined in Clause 3, include

“facilitating, encouraging and participating in … the … storage … of clean energy”.

It is therefore deeply concerning that the Bill makes no provisions to effect that objective.

Amendment 85E in my name complements Amendment 85D. It is a simple amendment and merely requires an annual report from Great British Energy on the overall cost to the taxpayer of curtailing the supply of renewable energy. This will principally apply to offshore wind, which frequently produces excess supply. Under the current arrangements, the taxpayer pays offshore energy producers to reduce their supply and this has been extremely costly, driving up energy prices for consumers.

In December 2023 the think tank Carbon Tracker estimated that wasted wind power would add £40 to consumer bills, and predicted that this figure would rise to £150 in 2026. Clearly, consumers have a direct interest in us getting to grips with this problem, and the Government would surely agree that the establishment of Great British Energy presents an opportunity to do this. It is therefore critical that GB Energy looks to invest in long-duration energy storage, which would mitigate the increased cost to consumers resulting from wasted energy.

With this said, can the Minister clarify whether the Government anticipate that the Secretary of State will give a direction to GB Energy to invest in energy storage, to ensure we are prepared for what the Germans call Dunkelflaute periods, such as we had just last week when several gas power stations were fired up at great expense to the taxpayer? Do the Government see a role for Great British Energy in helping to improve planning for energy supply deficits in the future? Finally, do the Government agree that improved energy storage infrastructure will reduce our reliance on gas-powered power stations in the future? I beg to move.

[Lord Ashcombe (Con)]

My Lords, I speak in support of these two important amendments, proposed by my noble friend Lord Murray of Blidworth. Thanks to the Library research team, I have gained greater knowledge of the size of constraint payments to the power producers for either constraining production or to rebalance the system. These payments are not insignificant, and I would like to advise them to your Lordships. The years that I am about to cite run April to March. In 2020-21, the amount was £1,070 million; in 2021-22, it was almost £1.5 billion; in 2022-23, it was £600 million; in 2023-24, it was £1.3 billion; and, in this year from April to October, it was £960 million. This gives a total of £4.78 billion. As mentioned by my noble friend, these amounts get added to the bills of consumers, businesses and households.

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[Lord Hunt of Kings Heath (Lab)]

My Lords, I am grateful to the noble Lord, Lord Murray, for Amendments 85D and 85E, which are focused on the issue of renewable energy curtailment. I must repeat, as I said earlier, that this debate is, in essence, about technologies, rather than the appropriate use of the directions in Clause 6. However, I assure the noble Lord that we are determined to increase significantly the deployment of short-term and long-term duration electricity storage to reduce curtailment.

I, too, was present in the debate on energy storage last Thursday, which was very interesting. My noble friend Lady Gustafsson recognised then that a variety of energy storage technologies would be needed to achieve net zero. That includes technologies such as lithium batteries and pumped hydropower storage—which can deploy at different scales and provide output over different lengths of time—and it can include emerging technologies, such as liquid air energy storage and flow batteries. Low-carbon hydrogen, too, can act as a low-carbon flexible generating technology and provide very long duration energy storage.

Today, around 7 gigawatts’ worth of grid-scale electricity storage is operational in Great Britain. This is made up of 2.8 gigawatts of pumped hydrogen and 4.3 gigawatts of grid-scale lithium battery storage. I add that we have announced a long-duration energy support scheme. We will publish a technical document in February. Applications will open in the second quarter, and we hope that the first agreements under the cap and floor system will take place in early 2026. It will be technology neutral, and it will be for projects that could not be built without the cap and floor system.

There are some developments in train: SSE, for instance, is doing exploratory tunnelling in the north of Scotland for pumped-storage hydro. Highview Power has reached FID in terms of liquid air energy storage near Carrington. Points on curtailment costs are well made; we see it as a key priority to accelerate network infrastructure to increase capacity on network and reduce constraints.

I do not think there is a lacuna; the Bill is constructed in the way it is. We have Clause 3 and the strategic statement of priorities in Clause 5. I hope I have reassured the noble Lord that the substantive point he raises is important and accepted by the Government.

[Lord Murray of Blidworth (Con)]

My Lords, I thank the Minister for his reply and am provided with some reassurance that the Government take storage seriously. However, for the reasons given by my noble friend Lord Ashcombe, the cost of curtailing output is presently substantial, as the Minister conceded. As my noble friends Lord Hamilton and Lord Offord pointed out, the difficulty with the current structure of the Bill is that we are not moving fast enough to secure sufficient storage capacity such that we do not need to make such large curtailment payments.

I urge the Minister to consider inserting in the Bill, at the very least, some form of requirement for reporting in relation to curtailment payments, which would encourage the market in storage capacity. With that, I am content to withdraw my amendment.

Amendment 85D withdrawn.

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Moved by

[Lord Murray of Blidworth]

85F: Clause 6, page 3, line 38, at end insert—
“(1A) The Secretary of State must give a specific direction to Great British Energy that it must report annually on the impact of its investments on the levels of electricity generated from solar technologies in the UK.(1B) The Secretary of State must lay a copy of the report made under subsection (1A) before Parliament.”Member’s explanatory statement
This would require GB Energy to report annually on the impact of its investments on the levels of electricity generated from solar energy sources in the UK.

[Lord Murray of Blidworth (Con)]

My Lords, I shall speak to my Amendment 85F and support Amendments 85G and 85H in the name of my noble friend Lord Fuller.

Many in the Committee have expressed their concern that the Bill contains no provisions to ensure sufficient accountability and reporting measures. In fact, at present, we have no means to assess the success of Great British Energy in contributing to the Government’s overly ambitious clean energy target by 2030. In previous days in Committee, it was drawn to our intention that the UK investment bank Bill, which is similar in structure to this Bill, had important accountability and report measures. Yet these are removed from this Bill—why is this? The investment bank Bill had a clear and structured framework for accountability and transparency, governed by rules that ensure that taxpayers’ money is used efficiently and subject to rigorous annual reporting, providing the public with the necessary details on its investments and performance. The Great British Energy Bill, on the other hand, lacks any reporting requirements.

This Bill grants sweeping powers to the Secretary of State, backed, as I said earlier, by £8.3 billion of taxpayers’ money. Throughout the election campaign, the Government pledged that that GB Energy would be established in an effort to speed up the delivery of renewable energy. Can the Minister explain how the Government will be held accountable? It is in the public’s interest to introduce accountability mechanisms which allow for oversight of the £8.3 billion being handed over. Ultimately, we say, the Bill grants too much discretion yet lacks proper frameworks to report on the impact of GB Energy’s investments on the levels of renewable energy generated by the United Kingdom.

I am grateful to my noble friend Lord Fuller, who shares my concerns and addresses them in the amendments in his name. He rightly notes that a report on the levels of renewable energy generated by GB Energy and its investments will allow us to assess the potential energy deficit that must be met by sources other than renewables.

We risk jeopardising our energy security if we ramp up renewable at the pace suggested by the Government. This is a matter of paramount importance, and I urge the Minister to listen carefully and to consider the arguments on this group of amendments. I beg to move.

--- Later in debate ---

[Lord Murray of Blidworth (Con)]

I am very grateful to the Minister for that response to this group. Plainly, I am also very grateful to my noble friend Lord Fuller for advancing his amendments. I suspect that, given the weather forecast, those in the control rooms will be glad to get back to patience and solitaire.

I am also grateful to my noble friends Lord Trenchard and Lord Ashcombe for their contributions. We discerned from those speeches that it is unsatisfactory that standby gas generation appears to be driving the price. I agree with my noble friend Lord Ashcombe that this is necessarily worrying, and it seems appropriate for the Bill to contain a direction that the Secretary of State can require GB Energy to provide clear transparency on what is driving the allocation of these renewable prices. It is therefore vital that a measure similar those proposed in these amendments makes its way into the Bill, and I invite the Minister to so consider. With that, I withdraw my amendment.

Amendment 85F withdrawn.

Great British Energy Bill

Lord Murray of Blidworth Excerpts

Committee stage
Tuesday 3rd December 2024 Lords Chamber

[Lord Hamilton of Epsom (Con)]

My Lords, I would like to support my noble friend Lord Frost’s amendment because we have to judge this Bill on what it achieves, rather than on the processes it goes through. I have a slight problem, because it seems to me that if you want lower energy prices, you want to recognise the advances made by technology and have lower feed-in prices paid by the consumer. That is the way you get energy prices down; but, of course, if Great British Energy is investing in the companies, it wants the feed-in prices to be as high as possible, so the companies make profits.

It seems to me that there is a conflict here, with government standing on both sides of the commercial argument. Let us face it, my noble friend Lady Noakes is right: the price industry is paying for energy as a result of this extraordinary pursuit of net zero is making us extremely uncompetitive in world marketplaces and makes the reindustrialisation of this country something we can only dream about. No company is going to locate in Britain to start a business here if it is paying much higher energy prices than in the rest of Europe, as my noble friend Lord Frost has reminded us.

The Government have to be much clearer in their own mind on what they are trying to achieve with Great British Energy. Just saying that it is going to lower energy prices is not quite good enough, really; you have to say how it is going to lower energy prices. That is something we all want to see, but it is very difficult to attain. Perhaps the Minister can explain how all this is going to be done.

[Lord Murray of Blidworth (Con)]

My Lords, I just wish to make one submission on this amendment, in support of my noble friend Lord Frost. Clause 1(1A)(a), proposed by the amendment, contains the phrase

“reducing household energy costs in a sustainable way”.

The great merit of this is that “sustainable” has two meanings in this context: first, that the low prices are sustained over a long period, which is clearly a good thing; and secondly, that they are sustainable in the sense that they are good for the environment. It is a very well-drafted purpose clause and I commend it to the Committee.

[Lord Offord of Garvel (Con)]

I rise to speak to Amendment 2, in the name of my noble friend Lord Frost and my own. This amendment brings critical clarity to the purposes of the Great British Energy Bill. It clearly outlines the two primary objectives the Secretary of State must pursue when designating a company as Great British Energy: first, reducing household energy costs in a sustainable manner; and secondly, promoting the UK’s energy security. I should add that I would not in any way quibble with my noble friend Lady Noakes’s amendments to both those provisions.

These objectives reflect the values of economic responsibility, national sovereignty and long-term sustainability. In the face of rising energy prices and global uncertainty, ensuring that energy remains affordable for British households and businesses is paramount. Reducing costs while maintaining a focus on sustainability means we can protect consumers without compromising the environment. Moreover, energy security has never been more important. The UK’s reliance on foreign energy sources leaves us vulnerable to geopolitical instability—today we still import 40% of our energy. By emphasising energy security in this amendment, we are prioritising the resilience of our national energy infrastructure. A secure energy supply is not just a matter of economic policy; it is a matter of national security.

This amendment provides the framework for a holistic energy strategy that benefits consumers, supports industry and strengthens our nation. As Conservatives, we on these Benches believe that the Government’s role is not to overregulate or restrict but to create the conditions for growth and sustainability. Therefore, Great British Energy must not be a mere title, but an institution, if at all, that advances these vital objectives of lowering energy costs and ensuring energy independence for future generations.

It is imperative that we recognise the significance of Amendment 2, not only in the context of the Bill but as a cornerstone of sound legislative practice. Providing a clear statement of purpose ensures that any future actions taken under this Bill align with the objectives of affordability and energy security. Without such a guiding clause, we risk leaving the interpretation of the company’s aims open to ambiguity or to shifting priorities over time. Does the Minister not agree that a purpose clause of this nature would greatly improve the clarity of the legislation? If he does not agree to support this clause, could he outline on what grounds that decision has been taken?

This amendment would also serve to reassure the British public and industry stakeholders that Great British Energy will not deviate into activities that may undermine these core objectives. We have seen in the past how well-meaning initiatives can become overly bureaucratic or lose sight of their founding principles. A purpose clause acts as a safeguard, compelling policymakers and administrators to remain true to the Bill’s intent.

Strikes (Minimum Service Levels) Bill

Lord Murray of Blidworth Excerpts

Committee stage
Thursday 23rd March 2023 Lords Chamber

[Baroness O’Grady of Upper Holloway (Lab)]

My Lords, I get the impression that the noble Lord, Lord Hogan-Howe, did not necessarily want to associate himself with the whole Bill, but was asking questions about who was included and excluded and why.

From our Labour perspective, one of the key worries about the Bill has been: are we going to see executive powers taken to add in sectors at different stages without proper scrutiny, proper accountability or consultation? Many see this as an attempt to ban strikes, a fundamental human freedom, through the back door. It might get to the stage where it would be easier to have a list of sectors not covered as opposed to those that are.

We oppose this amendment; fundamentally, because it fails to address the root causes of the problems people face. I hesitate to advise the noble Lord, who knows far more about this than I do, but since 2010 we have seen police funding cut by £1 billion. We have seen huge cuts to police officer numbers of 20,000 and a similar number of support staff being cut. In the Casey report, it was pointed out that those cuts in support staff were having a direct impact on police officers, who were having to cover that work too and that impacts the effectiveness of the service.

It seems to me that these are far bigger issues at a time when so many staff in the police service and elsewhere are facing real-terms pay cuts year after year, which have a real impact on morale, recruitment, retention and our ability to deliver the high-quality service that we all want to see. My sense is that it would be much better to focus on tackling the root causes of concern and discontent rather than suppressing the symptoms.

[The Parliamentary Under-Secretary of State, Home Office (Lord Murray of Blidworth) (Con)]

I thank all noble Lords for their contributions to the debate and in particular my noble friend Lord Greenhalgh and the noble Lord, Lord Hogan-Howe, for their amendment.

This amendment seeks to require the Government to undertake a review into whether and to what extent the legislation has met its objectives and whether the legislation should be extended to additional services, particularly police support services. On completion of the review, the report would be laid in Parliament. The Government are committed to reviewing the impact of the Bill within five years of when the first secondary legislation comes into force. Given that the detail of minimum service levels will be set out in the regulations that follow the Bill, this is an appropriate approach and timeframe.

On the specific point about extending the Bill to additional services, it is worth repeating that the key sectors covered by the Bill are broadly the same set of services that were listed as important public services in the Trade Union Act 2016, which have long been recognised as being important for society to function effectively. The 2016 Act did not include policing, in part because the prohibition on police officers taking strike action meant that this was not felt necessary.

Police staff across the country make an exceptional contribution to policing and we are grateful for the professionalism and dedication they show in their work. Police staff, including police community support officers and other members of the police workforce who do not have warranted powers, have no restrictions on their right to take industrial action and there are no provisions currently in place to provide minimum service levels. However, chief constables have a statutory duty under the Civil Contingencies Act to ensure that plans are in place to maintain key services when instances such as a strike occur. When police staff have taken strike action in the past, police forces have put in place plans to ensure resilience among their police officer workforce to ensure that essential front-line services are maintained.

[Baroness O'Grady of Upper Holloway (Lab)]

Similar responsibilities apply in the fire service, in respect of the Civil Contingencies Act, so why is it necessary to include fire services in the Bill?

[Lord Murray of Blidworth (Con)]

The context for the police is clearly different from that for the fire service, in that the vast bulk of police officers, as described by the noble Lord, Lord Hogan-Howe, are covered by the provisions of the earlier legislation precluding them from striking. As we discussed, this puts them and the force in a different category.

Contingency plans are largely based on the redeployment of police officers to cover operational staff roles. Police officers are of course prohibited from participating in strike action and, therefore, chief constables are able to meet any such obligations under the Civil Contingencies Act. I hope that goes some way to address the points raised by the noble Lord, Lord Hogan-Howe. The Government currently have no intention to add to the sectors covered by the Bill, and any future amendments would require separate primary legislation.

[Lord Hogan-Howe (CB)]

The Minister’s point—that arrangements are being put in place for police officers to backfill—is fair, but there are two problems: if you have fewer and fewer cops who can be in the control room all the time, you have to keep them trained, and then you have to withdraw them from the street, which is a significant diminution. First, if you have to train them every year, that costs money and takes time—and then you presumably have to withdraw them when there is some kind of action. For me, it is not a reassuring answer to say that police officers can just backfill, because I am afraid that they cannot without training or experience in this vital part of the service.

[Lord Murray of Blidworth (Con)]

The contingency plans are of course already enabled in the Civil Contingencies Act and, although this situation would be less preferable than the one that prevails in a non-strike scenario, it would be successful in the Government’s view. Furthermore, in the event that police staff take strike action, or when they have taken strike action in the past, police forces will or have put in place plans to ensure resilience among their police officer workforce, to ensure that essential front-line services are maintained. However, as noble Lords would expect, we will keep under review the sectors that we are discussing in this debate, and will not hesitate to take further action if we judge that necessary.

I will briefly address some of the specific points raised by noble Lords. Clearly, from the Government’s perspective, we accept that the points raised by the noble Lord address a broader class of people—of police auxiliaries, if I might style them like that—than just those in call handling. Of course, he made a good point that this goes across the piece; the vital work done by broader police staff is something we should consider.

The noble Lord raised points in relation to His Majesty’s Coastguard. I confirm that the Department for Transport is still considering which other sectors minimum service levels may apply to. Therefore, the position on applying MSLs to coastguard services will be kept under review, and any decision regarding these services will of course be subject to consultation. Similarly, my noble friend Lord Greenhalgh made some powerful points about the importance of auxiliary staff in this context, and I take those very much on board.

As to the points raised by the noble Lord, Lord Fox, I can confirm that there was consultation with other government departments prior to the selection of the list described in the Bill.

Turning to the points made by the noble Baroness, Lady O’Grady, this is clearly not an attempt to ban strikes. The key sectors covered in the Bill are broadly the same set of services as those listed in the Trade Union Act 2016, which have long been recognised as being important for society to function effectively. Strike action in these sectors has the potential for far-reaching consequences for members of the public who are not in any way involved in the dispute, and it is only right that these sectors are included within the scope of the legislation.

For all those reasons I invite the noble Lord to withdraw the amendment.

[Lord Hogan-Howe (CB)]

I am grateful for the Minister’s reply and for the contribution of other noble Lords. I was not sure whether the Minister said that the Home Office or other departments had been consulted, but I will let that rest. I am grateful for the consideration and take his point that there will be further review in due course, be it the police or the coastguard. I am content to withdraw the amendment.