Energy Bill [HL]

Debate between Lord Whitty and Baroness Bennett of Manor Castle

Committee stage
Monday 19th December 2022 Grand Committee

[Baroness Bennett of Manor Castle (GP)]

My Lords, I shall speak chiefly to Amendment 162. tabled by the noble Baroness, Lady Worthington, although I take the opportunity to welcome the government amendment on help for micro-businesses and say that it is great to see that happening. The noble Lord, Lord Ravensdale, has already introduced this very clearly; I shall make just one additional point and apologise to the Committee for my absence last week when a number of amendments that I had either tabled or supported were debated. I was in the Chamber with the genetic technology so-called precision breeding Bill. If we have two environment Bills running in exact parallel, it creates some difficulties. I particularly want to thank the noble Baroness, Lady Worthington, for some excellent support for some of my amendments last week.

On Amendment 162, I want to make the point that it is crucial here that we are talking about local networks; what may be appropriate in one place may be inappropriate in another. I am thinking, for example, of areas where air pollution is an issue and the kind of fuel used will be a particular issue in that area. It may, indeed, be appropriate for the regulator to take action on the basis of local conditions as well as of national polities, in terms of either the nature crisis or the climate emergency.

[Lord Whitty (Lab)]

My Lords, noble Lords may have noticed that I extracted my amendments to the second group, when they were originally suggested to be tabled in this group. They relate to the protection of consumers.

I am grateful that the Minister emphasised protection, for both domestic and non-domestic consumers, of the commitments to district heating, decentralised energy and community energy. I am strongly in favour of that move, but I do not think the Bill, as first drafted, or as I read the amendments proposed in the Minister’s group, entirely meet the need to protect consumers of district heating et cetera to the same extent that consumers of other suppliers are protected. I was gratified by some of the Minister’s words this afternoon, but I still do not feel that this combination of what is in the Bill and the Minister’s own amendments will deliver for consumers of district heating the protections, that have been absent for so long, which are supplied via Ofgem to consumers of other forms of electricity supply. I think it will need a bit of tweaking and I shall come to that in the following group.

I do, however, want to register my appreciation for the role of decentralised energy being recognised here. We have some tidying up to do, but I welcome the Government’s commitment to extend support both for consumers in this sector and for the sector itself.

Subsidy Control Bill

Debate between Lord Whitty and Baroness Bennett of Manor Castle

Lords Hansard - Part 1 & Report stage
Tuesday 22nd March 2022 Lords Chamber

[Lord Whitty (Lab)]

My Lords, I shall also say a few words about Amendments 51 and 61 in this group. I do so in lieu of the noble Baroness, Lady Boycott, who, unfortunately, has to be at a funeral this afternoon. I declare my interests as set out in the register but in particular a very new one, which is that I have become a director of Peers for the Planet.

This amendment is pretty straightforward. It says that our climate change strategy, our net-zero strategy, about which the Government have been very clear, should be taken into account in their subsidy policy. It is odd that it is not in the Bill, either in Schedule 1, which we are discussing, or virtually anywhere. However, we are lucky tonight because the Minister is of course also Minister for many aspects of net zero. I therefore assume that my amendment will be received with acclaim by the Government Benches. They might think they have a better form of words that they want to bring forward later, but I think my form of words is fairly clear.

We are on Schedule 1 to the Bill, which is headed “The Subsidy Control Principles”. That a flagship policy of the Government which has been said by Ministers time and again should apply across all government policy is not included in that schedule is very odd indeed, and it must surely be an oversight. Even more surprising, it is not referred to in Schedule 2, which relates to energy and efficiency principles, because that is mainly about energy policy. There is a reference which could be said to be relevant, which is to subsidies directed towards the reduction of carbon use and to help decarbonisation, but those are specific subsidies. What my amendment is concerned about is that all subsidy schemes should take into account their implications for our target zero policy and climate change objectives.

I would find it difficult to think the Government could reject that. Ministers have said on many occasions that it is one of our most important policies and strategic commitments. The Public Accounts Committee has recently said that all government departments must take it into account, and that includes new legislation. This is substantial new legislation which may not obviously directly affect climate change, but everything indirectly affects it. Subsidies after all, whatever their form, are about interfering with the market to get a different outcome. It would be odd indeed if the Government did not accept that, if the market was moving in the direction which was more or less in line with our climate change agenda, we should not intervene with a subsidy which reversed it or at least offset it. We are not saying that every subsidy has to be directed at climate change, but the implications have to be taken into account when considering the validity of that subject.

I am expecting a positive response from the Government. I do not think it would cost them a lot in terms of the overall nature of the Bill, but it would give credibility to the overall policy that our net-zero targets should be followed through across the whole of government and all public authorities. If the Government reject it, I will find that very difficult to accept, and I think we would wish to test the opinion of the House. I hope that the Government will be reasonable and either come up with their own wording or just accept the wording which the noble Baroness, Lady Boycott, and I are proposing. I beg to move.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise with great pleasure to follow the noble Lord, Lord Whitty, who has powerfully and clearly introduced this group of amendments. I will offer the Green group’s support for Amendments 3, 51 and 61. Were we not in a state of continual juggling of different Bills, I am sure that we would have attached one of our names to them.

Amendment 3, on which the noble Lord indicated he is likely to test the opinion of the House, is particularly important in considering the negative effects. I am influenced in that view by a visit I made yesterday to a village called North Ferriby and a site threatened with the development of an enormous Amazon warehouse, with significant environmental effects. From those environmental effects flow effects to people’s lives and well-being. It is the absolute reverse of levelling up in that it is making people’s lives much worse. It is clear that, when talking about economic development, there is inadequate consideration of local environmental effects and the broader effects on the state of our world.

However, I rise chiefly to speak to Amendment 5 in my name. Rather than trying to stop damage, this amendment is trying to lead the Government in a positive direction, which could help them deal with some of the issues facing them today and will be tackled by the Chancellor tomorrow.

Amendment 5 is all about helping small-scale community energy projects to make a big impact in the energy system. In Committee, the Minister suggested that community energy is not within the scope of the Bill, but I hope we might see a broader response today, and at least a positive response and acknowledgement from the Minister that this is a huge lacuna in government policy that desperately needs to be filled.

This amendment adds community energy to the list of circumstances that may be used to determine a subsidy, where the generator is a community energy project. What we see is that the rural community energy fund is soon winding down, despite its success. The Minister and I have, in another context, discussed the lack of any other community energy schemes, despite the Government’s promises to deliver them.

You might ask, “Why would subsidies be needed?” The fact is that community schemes often need early-stage seed funding to get them to the stage where they can seek investment. Without that, many communities, desperately keen to set up their own scheme, are never able to get one off the ground. What we are talking about is perhaps something like an electric car club, where a community can generate its own energy. I saw this in Stroud a few years ago: solar panels on the roof of a doctor’s surgery powered an electric car club car. This had all been supported by community investment and was run by the community, with the nature of the project being chosen by the community.

It is clear that this can unlock more than £64 million in private capital investment. It is an incredible opportunity for public money to kick-start a community-led green revolution. Importantly, thinking about the levelling-up agenda, this means that communities with money can put it into their local community and get the money circulating around that community. This is a cost-effective way of unleashing the possibility of many new green jobs.

I am not expecting the amendment to pass today, but there is a huge opportunity here. The crisis the Government are facing is clear: the cost of living crisis and concern, particularly in the context of the tragic situation in Ukraine, about energy self-sufficiency. But there is energy all around us: energy from the sun, the wind and people within communities desperate to help tackle the climate crisis and meet the needs of their own communities. Let us make sure that we have a subsidy scheme that can support all that physical and human energy and put it to good purposes to improve the lives of us all and our environment.

Environment Bill

Debate between Lord Whitty and Baroness Bennett of Manor Castle

Wednesday 15th September 2021 Lords Chamber

[Lord Whitty (Lab)]

My Lords, I added my name to my noble friend’s amendment. When he first proposed it to me I was not quite clear what the intention was, but it is quite clear what it requires. It gives us a metric —a figure—to display to the public what is a central matter of political dispute in this and many other countries, namely the claim that to achieve green growth and a reduction of greenhouse gases is in direct conflict with the ability to grow and become more prosperous. This country is one of the few countries that has managed to resolve that over the past 20-odd years. In most years we have grown the economy and reduced our greenhouse gases. That will be more difficult in the future and it is more difficult around the world.

All the amendment is asking is that the Government, the Treasury and the Bank of England in particular adopt some metric as an objective of economic policy and turn the ratio between growth and the reduction in greenhouse gases into a forward-looking metric that reduces our dependency on fossil fuels while assuring the public that we are still increasing prosperity. It is possible that the econometricians, statisticians and everybody else can work out a more complex or a simpler figure, but we need one figure that on a rolling basis measures the past and gives us a target and a tool for the future, so that we can counter a very insidious position where the climate pessimists say it cannot be done.

Of course, the polemicists in this argument on social media and more broadly not only emphasise that position in this country; it is making life difficult in many other countries. It defined Trump’s America and to a degree still hamstrings the American Government. It means that, however sophisticated their regimes, the oil producers still trot out the conflict as an excuse for not doing anything that will lead to a meaningful delivery of either the Kyoto or the Paris commitments. Of course, the conflict and the political argument are at their most acute in the poorest countries, where constraints on fossil fuel-based energy are seen as a barrier to raising the living standards of the poorest and most wretched on the earth.

That is why having a clear metric might help us in international negotiations as well. At present, the post-Paris commitments of each signatory are expressed in different terms. Most of them are absolute reductions in greenhouse gases, some are reductions in what they call energy intensity, and others are just lists of particular measures. It is quite difficult to determine the relativity between these different commitments and impossible to compare the level of their commitment with what are supposedly the Paris objectives.

If we started here and the Government committed to getting the Office for National Statistics and the other relevant bodies to address this issue and to come up with a single, clear measure—one that carries at least the broad range of political opinions in this country —we could then move on to convince the OECD and the rest of the world. We can start here. Whether in this Bill or in some other context, the Government really need to commit themselves to having a clear metric here, and I hope the Minister can give some encouragement to that view tonight.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise briefly, in a slightly curious position, to speak on Amendment 119 in the name of the noble Lord, Lord Lea of Crondall, and signed by the noble Lord, Lord Whitty. I continue to support this amendment while disagreeing with most of what they just said.

I will start with the comments of the noble Lord, Lord Whitty, on prosperity and GDP growth. If we define prosperity as a good quality of life and a healthy life, GDP growth is profoundly not coupled to what I would call prosperity. In both these contexts I point noble Lords to an excellent, if now slightly old, book, Tim Jackson’s Prosperity Without Growth, which started out life as a government report. Professor Jackson continues to work with the APPG on Limits to Growth to produce excellent further reports on that.

However, I am sure noble Lords will be pleased to hear that I will not reprise the whole growth debate at this stage of the evening. What I will point out is that we have people coming from different sides saying that we need a decent measure. Further, on the comments of the noble Lord, Lord Lea of Crondall, the figures we have for our reduced carbon emissions exclude emissions produced offshore and used by us. As the noble Baroness, Lady Boycott, said earlier, we are not counting the emissions associated with the blueberries we consume from overseas. We need to have counting. This is one measure of having true accounting of the actual cost.

Finally, on GDP, it is appropriate in the Environment Bill to look at how faulty GDP is as a measure. If you cut down a forest, you count the cost of selling the timber in GDP figures but not the cost of the lost forest. That really is a demonstration of how utterly faulty GDP is as a measure.