Great British Energy Bill

Debate between Lord Teverson and Lord Hunt of Kings Heath

Committee stage
Wednesday 15th January 2025 Grand Committee

[Lord Hunt of Kings Heath (Lab)]

We certainly got the noble Lord’s point.

This has been an interesting debate with which to finish today’s proceedings. I start with Amendments 106, 107 and 115. The debate between the noble Lords, Lord Teverson and Lord Hamilton, on the benefits of oil rigs and other structures for fish populations allows me to say that other energy infrastructure can also have a positive impact on nature. We know, for instance, that wind farms can coexist with farmland easily. We have examples of solar meadows, which is a practice of growing wildflower meadows on solar farms. I have heard talk of green corridors, where beautiful new pylons are built to extend the grid. I am not being facetious here, as we need to look at ways in which energy can contribute to nature recovery. It is an important point to make.

I agree on the importance of our coastal communities and commercial fishing, as reflected in Amendments 106 and 107. Amendment 115 would require GBE to consult annually with the commercial shipping sector and fishing industry. I would expect GBE to provide regular updates on its work on such issues through its annual reports and accounts. We know that the projects that Great British Energy is likely to be involved in will all be subject to relevant regulations, including environmental impact assessments. There will be statutory stakeholder engagement to understand the potential impact of development. In line with other energy developers, GBE will consider the impact and risk of its activity on the commercial shipping sector and fishing industry, as it will other affected stakeholders. I will draw these remarks to the attention of the chair of GBE, so he can understand the importance of the issue that the noble Lord, Lord Offord, has raised.

In relation to coastal communities, there will be many opportunities in the energy sector in the future. We talked about the challenge of the North Sea transition. We obviously hope that, as jobs reduce in the oil and gas sector, the people involved can take up other jobs, some of which I hope will be in the wider energy sector. But overall, GBE has an important contribution to make in this area.

On Amendment 114, the noble Lord, Lord Teverson, raised an important point on the Ministry of Defence and security agencies. Clearly, to ensure resilience, GBE will have to consider the impact and risk of its activity on offshore installation, including its pipeline and cable connections, within the context of relevant security regulations and hostile state action. It is a very important and serious matter. All nationally significant infrastructure projects, which include projects in the energy sector over 50 megawatts, undergo rigorous scrutiny to monitor and mitigate security risks. In the end, these decisions fall to Ministers to make in relation to development consent orders.

There was an interesting debate on air defence issues between the noble Lords, Lord Teverson and Lord Hamilton. I have to say that my department is working very closely with the Ministry of Defence on these issues. We are talking closely and working to ensure that our own offshore wind ambitions can coexist alongside air defence. MoD programme NJORD will deliver an enduring radar mitigation solution, which will prevent turbines from interfering with MoD radar systems. In the context of our more general working relationship with the Ministry of Defence, it will be a responsibility of GBE to consider and consult relevant stakeholders. My department will of course ensure that that happens appropriately.

Amendment 118, tabled by the noble Baroness, Lady Bloomfield, would place a nature recovery duty on Great British Energy. Let me say at once that we are absolutely committed to restoring and protecting nature and meeting our Environment Act targets. We want GBE to focus on its core mission to drive clean energy deployment, but I assure the noble Baroness that the projects that GBE invests in and encourages will be subject to all environmental and climate regulations, in the same way that every other company is.

I draw her attention to our recently published Clean Power 2030 Action Plan, which dedicates an entire section to

“Integrating clean power and the natural environment”.


I was going to quote from it, but I do not think I need to do now. We are launching an engagement exercise in 2025 to invite communities, civil society and wider stakeholders to submit their ideas on how we can best encourage nature-positive best practice into energy infrastructure and development. Feedback from this exercise will allow the Government to better understand how we can integrate nature restoration through the clean power 2030 mission. We very much agree with the substance of what the noble Baroness said.

[Lord Teverson (LD)]

As the Minister will know, terrestrially, there is now biodiversity net gain, which came through the Environment Act and is applied to terrestrial developments. I do not think this is for the largest of them yet, but that is due to happen. I understand it is the Government’s intention to introduce marine biodiversity net gain regulations. I presume GBE will be subject to those.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I am going to have to take advice on that as I do not have the information. However, if there are regulations which apply to companies, GBE will be expected to comply, and to act consistently with general government policy towards biodiversity. I will write to him about that in some detail.

On community benefits, I take the point of the noble Earl, Lord Russell, and other noble Lords. In our manifesto, we committed to ensuring that communities which live near new clean energy infrastructure projects can directly benefit from them. We are considering at the moment how to effectively deliver community benefits for those who live near new energy infrastructure, which includes new energy generation and transmission technology. We are developing guidance on community benefits for electricity transmission network infrastructure and onshore wind, which we will be publishing in due course. We are also reviewing our overall approach to community benefits, both to ensure consistency and quality and to ensure that communities are properly recognised and are able to come with us on our net zero and clean power journey. This includes looking to existing examples in Europe and further afield to see what has worked elsewhere. I look forward to updating the House on our approach to community benefits shortly.

The role of Great British Energy has been set out in its founding statement, and our commitment to putting local communities at the heart of the energy transition is a very strong component of what we are doing. The local power plan will support local communities to take a stake in the shift to net zero, as owners and partners in clean energy projects. They are important in themselves, as there is a huge appetite in many localities for community power, engagement and involvement. I agree that seeing a tangible benefit for local communities is important in itself, but it is also growing general support for the move to clean power and net zero, which is very important indeed.

We take the noble Lord’s point. It is clearly important, we are working on the details and will be publishing further information in due course. In my first week as a Minister in the department, I visited Biggleswade onshore windfarm, a small windfarm with 12 turbines. The company there is voluntary and there is a good practice trade guideline of paying £40,000 a year to the local community for such things as the local parish church, the community hall and other things. It was really good to see and is an example of what can happen.

Great British Energy Bill

Debate between Lord Teverson and Lord Hunt of Kings Heath

Committee stage
Monday 13th January 2025 Lords Chamber

[Lord Teverson (LD)]

My Lords, can I make a comment on that? I am a trustee of the green share in the Green Investment Bank, which was privatised by the Tories after it was set up by the coalition Government. It was a very profitable operation, although it was fully publicly owned. The issue was that it was almost too conservative in terms of making money under Treasury rules, so it did not make as much of a difference—it did make a difference—as it should have done. One of the risks is that GB Energy could be too conservative because the Treasury is too close to it and will not let it do the innovation that needs to happen for decarbonisation to take place by 2030.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I want to make just two points. The noble Lord, Lord Teverson, made a very interesting and wise contribution. I say to the noble Lord, Lord Hamilton, that of course I have heard the expression that Governments are not very good at picking winners. That is why we have set up GBE. We will have a company with people with expertise to enable investments to take place within the context we set under Clause 3 and Clause 5 as strategic priorities. None the less, it will have operational independence.

The noble Lord, Lord Teverson, is right; noble Lords in their various amendments are seeking to pin down GBE through excessive reporting requirements. The risk is that GBE, far from being allowed to flourish and develop, will be inhibited and micromanaged. That is why these amendments are wholly inappropriate in relation to Clause 6. The power of direction is not to be used in the way that noble Lords are suggesting; it is a backstop power. What is the point of setting up GBE if we are to undermine its independence in the way these amendments suggest?

Energy Costs for Businesses

Debate between Lord Teverson and Lord Hunt of Kings Heath

Tuesday 17th December 2024 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, we are putting some resources into the fusion programme. The years that I have in mind are the 2040s, which are a little less than 20 years away. This reflects our belief that there is very much potential now, and that the UK is in a very strong leadership position on it.

[Lord Teverson (LD)]

My Lords, one of the ways that large businesses reduce their energy costs is by signing up to power purchase agreements, or PPAs. That is only possible for large businesses. Is there a way that Government could make sure that those benefits of more competitive pricing could come down to medium or small businesses, maybe by clustering or some other method, so they can get the advantage as well?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I am very happy to give that consideration. The noble Lord will have noted that we are looking at whether we should introduce a regulatory regime for the third-party intermediaries, because some businesses are affected both by mis-selling and other problems with the current system. The other point I would make is that the Energy Ombudsman’s remit is being extended to small businesses within the next few days, and I hope that will also be of advantage to those companies that he mentioned.

Private Low-carbon Investment: Green Finance Institute Report

Debate between Lord Teverson and Lord Hunt of Kings Heath

Monday 9th December 2024 Lords Chamber

[Lord Teverson]

To ask His Majesty’s Government what plans they have to respond to the Green Finance Institute’s report A Greenprint for Property Linked Finance in the UK, published in November, to accelerate private low-carbon investment into existing homes.

[The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)]

My Lords, we recognise the important role that private finance can play in helping us to achieve our decarbonisation ambitions. My officials have met the Green Finance Institute several times to discuss the potential for property-linked finance in a UK context. We will continue to work with industry stakeholders to explore options for working with the private sector, including banks and building societies, to scale up private finance to accelerate efforts in this area.

[Lord Teverson (LD)]

My Lords, I very much welcome those conversations that the Minister has had. As he knows, the way to bring down energy bills for families is to insulate their homes. Indeed, homes account for almost a quarter of carbon emissions. Perhaps the Minister could be a little more precise. These discussions can take a long time. The £6 billion, which I welcome, in the Government’s warm homes plan is just a small amount of the money that is needed to refurbish UK buildings. Given that legislation is often required to implement these schemes, can he give some sort of timetable of when bringing such private finance into this sector will happen?

[Lord Hunt of Kings Heath (Lab)]

My Lords, the noble Lord is absolutely right that this is an important area of policy. We reckon that buildings account for 31% of total UK emissions, and heating is 75% of that proportion of emissions, so I very much take his point that there is an urgent need to make progress. I cannot give him an exact time. Looking at international experience of these kinds of schemes, it is not altogether positive. In the US experience, for instance, it may have worked for multi-occupational commercial properties but, for individuals, it does not seem to have made much progress.

COP 29

Debate between Lord Teverson and Lord Hunt of Kings Heath

Thursday 28th November 2024 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, it is always interesting to have the noble Lord’s perspective, given his long-standing interest in energy. He enjoyed being Energy Secretary, and it is good that we have a department focused very much on energy issues. I think the target is consistent: 2030 is the aim for clean power; the 2035 goal we have agreed on the reduction in greenhouse gases is the UK offer that we have made. The actual target we have set is an 81% reduction in emissions by 2035, against a 1990 baseline. I am clear that this is consistent with 2030—in other words, the 2030 target takes us on to the 2035 target we have now agreed. The noble Lord asked that question on Monday, and we are clear that we are being consistent; and obviously, we are taking the advice of the Committee on Climate Change on this.

[Lord Teverson (LD)]

My Lords, one of the things that has improved hugely is satellite monitoring of emissions, particularly of methane. According to a recent report, some 1,000 major methane escapes have been identified and notified to the nations which caused them, but there has been very little reaction or implementation of measures. The UK has shown leadership here as part of the global methane pledge. How can we much better ensure that we implement the solution to emissions of this most concentrated of greenhouse gases, as doing so is really important?

[Lord Hunt of Kings Heath (Lab)]

I am grateful to the noble Lord, who raises a very important issue. In fact, during or around the time of the COP 29 discussions, we announced £5 million to help developing countries tackle methane emissions from their fossil fuels. This is supporting delivery of the global methane pledge launched at COP 26. However, I am very happy to take a further look at this and to respond to the noble Lord in some detail about what further actions we might take on this important matter.

Drax Power Limited: Ofgem Investigation

Debate between Lord Teverson and Lord Hunt of Kings Heath

Monday 11th November 2024 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, I am grateful to the noble Lord. I have seen the media reports, but I have to say to the House that it is the responsibility of Ofgem to make judgments as to whether a company is applying the sustainability criteria. The issue before us today is data information. Clearly, Ofgem found that Drax was not complying with the requirements—hence the redress payment. However, it did not find that Drax was not complying with sustainability criteria.

[Lord Teverson (LD)]

My Lords, given the amount of private money that has been spent in this area, is it not important for Ofgem to be rather more ahead of the curve on these issues? I notice in the report that Drax is now going to have external audit. Why did it not have this before? More importantly, why does not Ofgem get off its backside and go to the United States and Canada to check these items out for itself? Is it about to do that?

[Lord Hunt of Kings Heath (Lab)]

My Lords, first, it is not for Ministers to tell Ofgem how to regulate; we have to rely on its rigorous approach. Secondly, in the US and Canada, we depend on the rigorousness of the regulators locally. Ofgem’s job is to ensure that, as a whole, sustainability criteria are correct. I do not believe that it would be fair to say that Ofgem is not doing a thorough job. That is not my experience.

European Union (Withdrawal) Bill

Debate between Lord Teverson and Lord Hunt of Kings Heath

Committee: 8th sitting (Hansard - continued): House of Lords
Monday 19th March 2018 Lords Chamber

[Lord Hunt of Kings Heath]

My Lords, that was a mischievous intervention by my noble friend, which the noble and learned Lord has dealt with eloquently from his place.

It seems to me that this is a very important question and the noble and learned Lord is surely right: obviously, this country developed the first peacetime nuclear plant at Sellafield—or Windscale, or Calder Hall, even—and we blew that. We blew our leadership completely. We have though, with nuclear fusion, still great potential and we are at risk of throwing that away as well. That is why this is such an important amendment and discussion. It would be a tragedy if we lost the current expertise that we have, and I hope the noble Baroness will be able to say something about that.

I echo what my noble friend Lord Liddle said: we have had a number of debates about Euratom now, but there has never been a straight explanation as to why the Government decided they had to leave Euratom even though we were members of Euratom and Euratom existed before the EU. The noble Viscount, Lord Trenchard, is critical of Euratom, but the fact is that the Government—his Government—are saying that we want to maintain nuclear safeguards in consistency with Euratom, but we cannot do so at the beginning so all we can promise to do is to maintain the standards of the IAEA, which as the Office for Nuclear Regulation told the Public Bill Committee in the other place will mean fewer inspections at lower intensity. So we have this remarkable situation where the Government have decided, for no reason that anyone can understand, that we are going to leave Euratom, but because we think Euratom is such a good institution our aspiration is to keep to Euratom standards. However, we cannot do it: because the UK cannot get the number of inspectors in place to maintain those standards, we are going to keep to the reduced standards of the IAEA. We find ourselves in a quite extraordinary position.

I turn to the speech given by the Prime Minister at the Mansion House just a couple of weeks ago. She differentiates between some EU agencies and others. So, in her speech, she says:

“We will also want to explore with the EU, the terms on which the UK could remain part of EU agencies such as those that are critical for the chemicals, medicines and aerospace industries: the European Medicines Agency, the European Chemicals Agency, and the European Aviation Safety Agency”.


However, when she talks about energy, she simply talks about having “a close association” with Euratom. I ask the noble Baroness why, when is it is quite clear that the Government are going for associate membership of a number of agencies, such as the EMA, which means accepting their rules but having no influence over those rules, in the case of Euratom, which I would have thought, frankly is as crucial as the European Medicines Agency or the European Chemicals Agency, all we are seeking to do is to have a close association. It would be very helpful if the noble Baroness would explain what is it about Euratom that the Government seem so determined to leave and not seek associate membership, when it is an agency whose standards we aspire to keep. It is a puzzle that, despite the help of Ministers on this Bill and the Nuclear Safeguards Bill, we still do not understand.

[Lord Teverson]

Before the Minister stands up, perhaps I might ask for some clarification. The draft transition agreement was published today. I read through what it says on Euratom—it is in green, meaning that it is completely agreed apart from any legal, bureaucratic changes that might be made, yet I am still unclear from that document whether during the transitional period the ONR is responsible to the International Atomic Energy Agency for safeguarding in the UK or Euratom continues to be responsible under the acquis. I ask the Minister to clarify that tonight—it must have been agreed because it is in green—so that we are clear for the debate tomorrow.

Energy Bill

Debate between Lord Teverson and Lord Hunt of Kings Heath

Wednesday 6th November 2013 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, I support the noble Baroness. I speak as president of CO-Gas Safety. Like the noble Baroness, for many years I have been concerned about the lack of action in relation to carbon monoxide poisoning. As she said, the official figures disguise the true extent of the problem. Because the official figures have not really reflected the size of the problem, various agencies, particularly the Health and Safety Commission, have never really been prepared to take this issue seriously. The noble Baroness has found an ingenious way to bring this to your Lordships’ attention within the Energy Bill.

This afternoon, the Minister gave a very welcome announcement in relation to a government review. However, we would like to see this issue go further. All that my noble friend is doing is setting a framework within which the Government can take action following such a review. I think it particularly important that it gives the Government a regulation-making power. As the noble Baroness has said, not only are the figures just the tip of the iceberg but there is a real concern at the moment about the cost of servicing appliances. If people put that off, particularly because of concerns about the cost of living at the moment, the risk to many people will be greater. For that reason, I hope that the Government might be sympathetic. If not, perhaps the noble Baroness will decide to press this at some point. I hope that she does.

[Lord Teverson]

Regrettably, my Lords, as has already been mentioned, my noble friend Lady Maddock is in Berlin on an EU Select Committee. It seems to be the place to be this afternoon. I know that she is very keen to support this amendment.

We hear of many tragedies that have happened because of this silent killer, often, but not exclusively, within rented accommodation. It is perhaps worth reminding those of us who are landlords in any way that we are already under an obligation to have our gas installations checked. I think it would make sense for a way to be found, without requiring more bureaucracy or a lot of extra work, to include carbon monoxide indicators through a clause of this sort.

I had a new wood-burner fitted in my house recently. Although carbon monoxide is often thought about in connection to traditional gas boilers, I was reminded by my installer that wood-burning stoves can be far more dangerous than gas boilers in this area. They took it upon themselves to install a carbon monoxide indicator and alarm in that room before they left. I thought that that was excellent; the industry was starting to get ahead of the problem. However, I hope that the Government will pursue this agenda in whatever way they feel is appropriate in order to ensure that more of the tragedies which have happened in the past do not happen in the future.

Scottish Parliament (Constituencies and Regions) Order 2010

Debate between Lord Teverson and Lord Hunt of Kings Heath

Tuesday 26th October 2010 Lords Chamber

[Lord Teverson]

My Lords, I will make a short intervention. I was born in Dagenham—made in Dagenham, effectively—which was then part of Essex and is now in occupied Essex, since it is occupied by the London Borough of Havering. I am interested in the debate on this order. I say to noble colleagues from Scotland: be thankful that, whatever this order and the Bill in the other House say, at the moment there is no question of boundaries crossing the Scottish-English border. I ask you to keep that in mind when it comes to other nations in the United Kingdom. Cornwall is a Celtic nation. I ask for noble Lords’ support when the other Bill comes to this House. There is a possibility of boundaries crossing the Tamar river. I ask the Government to take that into consideration as they think about the Bill before it crosses to this House.

[Lord Hunt of Kings Heath]

My Lords, I am very grateful to the noble and learned Lord the Advocate-General for Scotland for his introduction to this order, and for his explanation. I am also grateful to his officials for the helpful information that I received this morning. It has certainly been a wide-ranging debate. I am sure the noble and learned Lord is looking forward to responding to all the pithy questions put to him.

I would particularly encourage him to respond to the noble Lord, Lord St John of Fawsley. It is quite remarkable, given the current size of the House, that the Government are proposing to bring dozens of new Peers into the House. I am a member of the Leader’s Group, which is looking at retirement options because of concern about the size of the House. I find it remarkable, given that the Government now have a notional majority which we are seeing as the votes come through, that they seem determined to pack this House. It is difficult to see how this House can perform as a revising Chamber if the Government are determined to win every vote. What is the point of the second Chamber in that respect? I hope the Minister will respond to that.

As he said, the orders follow the submission of the Report on the First Periodic Review of Scottish Parliament Boundaries by the Scottish Boundary Commission. The intention is that they will apply to the Scottish Parliament elections in May 2011. I start by paying tribute to the Boundary Commission for Scotland. Clearly, not all noble Lords agree with the entire outcome of the commission’s work. However, I do not think that any noble Lord has criticised the thoroughness with which it embarked on this exercise.