Energy Bill [HL]

Debate between Lord O'Neill of Clackmannan and Baroness Northover

Monday 31st January 2011 Grand Committee

[Lord O'Neill of Clackmannan]

Could the Minister give us any evidence that this has taken place with any degree of consistency? We normally find that upward changes in prices as a consequence of market conditions are introduced almost immediately but that, when there are downward movements as a result of the same market circumstances, it takes rather longer. It seems that the customer in the middle is left having to pay more for longer and getting the benefits of lower prices for a shorter period.

[Baroness Northover]

The noble Lord might be reassured if I could conclude. We are sympathetic to what the noble Lord, Lord Whitty, intends. We have to give careful consideration to the amendment to make sure that the unintended consequences that I have just mentioned are not brought to bear. I therefore propose to him that we take away the amendment for further consideration, because we understand the principles behind it. On that basis, I wonder whether he might be willing to withdraw the amendment.

Energy Bill [HL]

Debate between Lord O'Neill of Clackmannan and Baroness Northover

Wednesday 26th January 2011 Grand Committee

[Lord O'Neill of Clackmannan]

I have a question for the Minister on the Scottish section of the Bill. It was put by the Association for the Conservation of Energy that its people in Scotland had been looking at the Climate Change (Scotland) Act 2009, which was passed by the Scottish Parliament, and their feeling was that most of the provisions of this section relating to Scotland were covered by that legislation, perhaps in a more rigorous fashion. Has there been extensive consultation between officials, the Scottish Government and DECC on this issue, and are the Scottish officials on all fours with this? I am not making any point about one institution against another, but the impression conveyed to me was that it seemed that the prevailing Scottish legislation more than covered the area, and perhaps did it in a slightly better way than is suggested in the Bill. I would be interested to hear what the position is.

[Baroness Northover]

My Lords—

Energy Bill [HL]

Debate between Lord O'Neill of Clackmannan and Baroness Northover

Monday 24th January 2011 Grand Committee

[Lord O'Neill of Clackmannan]

I would like to ask the noble Baroness one further question. What will happen in the short tenancy housing market if landlords start increasing the rent on the basis that the house is now better insulated as a consequence of the Green Deal? That would mean that subsequent tenants would be paying twice—once for the improved property, and secondly for the improvement. Is there an ombudsperson who is going to take care of that?

[Baroness Northover]

I will resist the temptation to speculate about areas that I may be less than well briefed on. If the noble Lord wishes to bring that up again when my much better briefed noble friend Lord Marland is dealing with a suitable amendment, I would welcome that he does that. ECO will target households and presumably subsidise poorer ones. However, before I get myself into any more of a complicated mess, I invite the noble Baroness, having led me down various alleys, to withdraw the amendment.

Energy Bill [HL]

Debate between Lord O'Neill of Clackmannan and Baroness Northover

Monday 17th January 2011 Grand Committee

[Lord O'Neill of Clackmannan]

I support this amendment. It is important that the possibility of renewable energy making a contribution is recognised. It is essential that we try as best we can to make this legislation as explicit as possible. Certainly, when one talks of renewables, one is talking not just of combustion but of other methods such as ground source and air source heat pumps which, I have to say, can only make a bit of a difference. Although they take the chill out of the house, they do not really warm it in the way that we would want, because there has to be other insulation and it tends to be background heating. Nevertheless, they are important, and if we could reduce dependence on oil-fired heating, it would be very useful.

My sister-in-law lives in an oil-fired house in a village just outside Edinburgh, and the oil delivery vehicle had considerable difficulty getting to her house this winter. Indeed, the amount of diesel or petroleum that was used by the company to deliver the oil must have added quite considerably to the CO₂ emissions of that type of heating. We tend to forget the bigger picture. When we have a debate at this early stage in the Bill considering the Green Deal, there may well be other forms of reducing CO₂ emissions which do not spring immediately to mind and may not be included in what will probably be a too neat and tidy box-ticking form of assessment of carbon reduction techniques.

It is important that we make it explicit that renewable technologies across the board should be open to consideration and that the specific circumstances of the properties as yet to be defined are taken into account as well. It certainly might be important, if you have hard-to-insulate houses, that you could get additional forms of heating that might enable what is traditionally a rather expensive form of heating, namely electric central heating, to kick in at some of these rural properties.

Equally, at this stage, in the absence of a definition of eligible properties, we ought to take account of the fact that a number of renewable technologies work when you have not one house but half a dozen of them working together and sharing. These are commonplace in Scandinavia where the climate is more extreme than ours, but the houses tend to be better built and to have more efficient heating systems.

We have to look at this in the absence of a proper definition of “eligible property”. We might need to look at what could be a co-operative venture; that would lend itself to social housing projects but it may well also lend itself to certain village contexts as well. It would therefore be useful to underline the prospects and the possibilities for renewables.

I do not imagine that we can accurately factor in the feed-in tariff at this stage because it is an inexact science. There is every likelihood that feed-in tariffs will go down in value as time moves on. They are a selling point for renewable technologies and we might not want to be too dependent on their contribution to at least an element in the Green Deal. Maybe I am running away with myself here; maybe renewable technologies could have a contribution to make through the feed-in tariff and making the whole package that much more cost effective.

Again, in the absence of adequate definitions, the more explicit we can be in the initial stages of this legislation, the better it will be for our understanding of the potential that we could achieve through the Green Deal, either for individual properties or for a group of them. This group in particular is often the forgotten minority when we are dealing with not just fuel poverty but expensive-to-heat houses; because of their employment circumstances, people have to live outwith the gas grid and are condemned to paying outrageously high fuel bills, which takes up a disproportionate amount of their income. The amendment would help us to concentrate our minds on some of the opportunities, as well as the challenges, that properties of this nature would provide.

[Baroness Northover]

This is not the first Bill that I have worked on, but my previous role in international development was not exactly legislation-heavy, so I can also claim inexperience. It is also outside the remit of all the other areas that I am working on. Therefore we will have to look to the noble Lord, Lord Davies, to guide us.

Clause 2 defines an energy efficiency improvement. This is one of the important criteria for determining the eligibility of works to be financed by a Green Deal plan. The clause is deliberately broad; it allows for a range of measures to be covered by the new framework, including certain energy generation measures as well as measures concerned with reducing energy consumption. It enables the Secretary of State to specify within this broad definition which types of measure will be eligible for Green Deal finance. This will provide the clarity and certainty that industry and consumers need. Green Deal installers will also be required under Clause 7 to adhere to any requirements in the installers’ code of practice regarding the standards of products installed.

I am grateful to the noble Lord, Lord Whitty—who is not in his place, but who has vast experience in this area—for tabling Amendment 2, which seeks to ensure that measures which reduce energy consumption are installed before those which generate energy.

Amendments 1D and 2A, tabled by the noble Baroness, Lady Smith, and the noble Lords, Lord Grantchester and Lord Davies, seek to ensure that renewable and low-carbon energy sources and energy generation are covered by the Green Deal.

Amendment 2AA is a technical drafting amendment tabled by the noble Lord with the sharp eyes, the noble Lord, Lord Jenkin, which is designed to correct a citation made to the wrong subsection.

On Amendments 1D and 2A, it is clearly important to get the right measures in the right buildings in the right order. For example, making improvements to the fabric of buildings to improve air tightness means that if renewable heat and energy technologies are installed at the same time, or further down the line, the energy is not wasted. We would therefore like to consult colleagues on the detail of the proposed amendments and report back at the next stage of the Bill. We need to be clear on what the implications are of these amendments for, among other things, the possible impact on consumer demand.

I should point out to noble Lords who referred to the renewable heating incentives that, in addition to this Bill, they are designed to incentivise people to generate energy. The noble Lord, Lord O’Neill, may be encouraged by that—it sounds as though he is. As he was speaking, the noble Lord, Lord Marland, was making welcoming noises about what he was saying. The schemes are designed to be complementary and I hope that in discussions we can take the ideas further forward.

We will also want to satisfy ourselves that Amendments 1D and 2A do not duplicate existing provisions, as I believe they may. I thank my noble friend Lord Jenkin for his incredibly sharp eyes and for correcting the reference in subsection (5) to subsection (7). His sharp eyes may note a spelling error in his second amendment on the manuscript list, but I am incredibly impressed by his thoroughness.

I invite noble Lords to meet my colleague the noble Lord, Lord Marland, and officials to discuss the proposed amendments in more detail. I hope that noble Lords will be satisfied with this approach and, on that basis, I move that this clause stand part of the Bill.