Draft Combined Heat and Power Quality Assurance (Temporary Modifications) Regulations 2021

Alan Whitehead Excerpts

Wednesday 19th May 2021 General Committees

[Dr Alan Whitehead (Southampton, Test) (Lab)]

Thank you very much, Dr Huq. I am grateful to have been able to get here almost on time. I apologise for the discourtesy of not actually being here on time. I reflected on my journey from Waterloo station to here—I literally ran the whole distance—that I was doing all that just to say that we thoroughly agree with the statutory instrument in front of us—[Hon. Members: “Hear, hear!”]

This proportionate and measured administrative change will ensure that quality CHP arrangements can continue, and that those taking part in such schemes, which are, by and large, the most innovative and best organised combined heat and power organisations, are able to use their 2019 data for the purpose of qualifying for the next stage in the quality assurance proposals, and indeed for the renewable heat incentive and its successors. It is necessary to do that because of the destruction caused by the pandemic and the problems that several such plants have experienced in getting their data properly organised for the present period.

To disqualify or disadvantage good schemes because they have not been able to get their data in on time would be a great injustice. This measure sets out a way to deal with that, while maintaining the proper regulation and arrangements for quality assurance for the future. I wholeheartedly support the proposal, and I see from the consultation carried out that it was endorsed thoroughly by the industry associations. We might therefore say that there is not much to talk about, other than to wish this proposal every success in ensuring that quality assurance is maintained.

I would just like to ask the Minister a question to which I think I know the answer with reasonable certainty. I am sure she will be delighted to hear that this will not entail a further letter to me, as has been the case on previous occasions. What is happening with the wider proposals, which are very relevant to the good-quality schemes that are taking part in CHPQA activities? What is happening on the wider scheme to regulate the combined heat and power industry properly for the future? The Minister will recall that we had a Westminster Hall debate about that very recently, in which she was able to give some assurances about what is happening on regulation.

I see that nothing has appeared in the Queen’s Speech on the legislation that might be necessary to undertake this regulation, perhaps as part of a larger energy Bill. I understand that a draft energy Bill may be presented in the next Session, but there is no proposal to legislate in this Session, as far as regulation is concerned. We do not need to rehearse the reasons for good regulation. Among other things, good regulation of the CHP sector will ensure that the best become even better and the worst come into the fold, as far as overall regulation is concerned. That is a real issue, in terms of the delivery of heating schemes, which is very much the subject of this SI.

My first thought is that it may be possible to regulate CHP schemes by way of secondary, rather than primary, legislation. Will the Minister investigate whether such a regulation route might be a better way of proceeding, rather than waiting for something perhaps two or three years hence to come through in primary legislation?

I emphasise the need to do so, because of the enormous expansion that I think both the Minister and I anticipate for CHP district heating schemes in the future. It is essential that we have proper regulation for that future expansion and for new operations coming into the existing scheme, so that they are included in the best possible way, making the best possible use of the incentives and other assistance that comes there way as a result of being part of the scheme, and which will enable them to be much better CHP district heating schemes in future. That is a very friendly nudge to ask the Minister to get on with, as quickly as possible, a full range of regulation and undertakings to make this SI, important though it is for the immediate present, fit for the future as well.