My Lords, I probably will not detain the Grand Committee for too long on this amendment, as in a way the principle has already been discussed on the amendment tabled by the noble Lord, Lord McKenzie. From our debates so far, we realise that the regulations really are not about zero-carbon homes; they are an approximation to that and we can never get to it. However, a great deal of consultation has gone on over the years with the building industry. We are always told—I accept it entirely—that one of the things that we need to do is make changes in regulations predictable and signal them far ahead, so that there is a degree of certainty, the producers can prepare and everything runs smoothly for the industry. With the Government and the industry, the Zero Carbon Hub spent a great deal of time coming to standards that would be accepted for 2016, and I admit to disappointment that we have not really got there at present. We have also removed a requirement about appliances within those homes being taken into consideration.
I talked about hope value in terms of planning just now, and my hope value in terms of the Bill is that the Government might reconsider where they go in this area, as we are still far away from zero carbon. I fully accept that we have to be practical, but this is the trajectory that we were expecting, it was negotiated with a large proportion of the industry, and it would be a good model were we able to pursue it. I beg to move.
My Lords, it is little more than a week since we received notification of the publication of the Government’s response to the outcome of the consultation exercise on zero-carbon homes and the so-called allowable solutions. Already there has been a flurry of government amendments to the Bill in the name of the noble Baroness, Lady Kramer, based ostensibly on these responses. They have been followed by contrary amendments in the names of the noble Lords, Lord Teverson and Lord Tope. There is clearly a division of opinion among the coalition on these issues.
Much in the Government’s document ought to be considered in detail, but at a glance it is easy to recognise its salient characteristics. It exemplifies the doublethink that we have come to expect of the Government in connection with environmental issues. It also illustrates the perspectives of the persons responsible for drafting the legislation, who have given expression to a kind of neoliberal economic thinking that was at the heart of the Energy Bill which we considered last summer. I shall attempt to characterise those perspectives but, for a start, let me talk of doublethink.
The consultation document on zero-carbon homes and the Government’s response both declare an earnest intention of staunching the emissions of carbon dioxide, yet ultimately subvert these intentions.
My Lords, we know that strike prices will differ across various technologies but I query whether that degree of flexibility is sufficient. There may be a case for varying the strike prices to cater for the different components of the same technology. I am thinking, for example, of the differences within the technology of gas powered LGC generation between the base load CCGT plant and the plant that is devoted to satisfying peak demand, which may be OCGT.
The cost profiles of the two varieties may be very different as will the wholesale prices commanded by their outputs. Should they be subject to the same market reference price and the same strike price? I am asking that question, in all innocence; it is not a tendentious question. But I have observed that the Minister has indicated or implied that there may be special accommodations within certain technologies for interconnection. If I am making any assertion, it is that we need a lot more detail and I am not sure that it has yet come forth. We need a lot more detail that would address the realities of electricity generation.
While I am sympathetic towards this, I have the impression that if the Government do not want this to work they will find a way to make it not work. Such an amendment is probably not the thing that saves this. Therefore, I am not sure that this works, but in terms of trying to make sure that there is some commitment to this form of energy generation in the future, I understand the motivation entirely. However, I suspect that any future Government who did not want to do this would find another way around it.