Great British Energy Bill

Baroness Bennett of Manor Castle Excerpts

3rd reading
Tuesday 25th February 2025 Lords Chamber

[Lord Naseby (Con)]

My Lords, I took part at Second Reading, but, sadly, I had a short sojourn in hospital during Committee and Report. I will make three points, although I support the whole Bill in principle.

It seems to me that three key areas fall under this amendment. The first is mini-reactors. Three years ago, I was told that Rolls-Royce was ready to go. It is fundamental that the mini-reactors get going.

Secondly, I understand there is some discussion about the role of hydrogen. I have contacted two universities, Cranfield and Manchester, which are doing extensive work. Additionally, the boiler workers’ union is totally involved. Hydrogen work is absolutely fundamental to the future of our energy, particularly for domestic heating.

Finally, there is still a view that, rather than import oil and gas, we should carry on some degree of exploration in the North Sea.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I welcome the government amendment and the way in which the Government have listened to your Lordships’ House on this Bill and overseen considerable improvements. One was the inclusion, finally, of community energy, something your Lordships’ House has been fighting for through two Governments and several energy Bills.

However, an important issue arises at this moment relating to community energy. While the amendment that the Government have put down will help community energy to grow in the medium to long term, the sector faces an urgent short-term problem: the uncertainty of the community energy fund’s future. The fund began in January 2024 and has been very successful and heavily oversubscribed: more than 150 community energy projects have been awarded grants. More than 100 projects are ready to go and are eligible for funding, but they will not receive it because the initial £10 million is expected to run out in May. This is the only substantive mechanism helping community energy to grow, yet it has no future beyond this year.

I make no apologies at all for representing Community Energy here. Its members have asked me to say that we have seen so many times with energy policy over the years a boom-bust cycle of funding and defunding and then funding and defunding again. There is a short-term issue here, although the Government have expressed their support for the long term. So can the Minister give me a clear statement on how the Government will deal with the uncertainty over the community energy fund’s future? Can he assure me that there will be early action to deal with the enthusiasm that the fund has not been able to meet, and clear instructions on that in the statement of strategic priorities for Great British Energy, as required by Clause 5 of the Bill?

[Baroness McIntosh of Pickering (Con)]

My Lords, I take this opportunity to congratulate the Minister on bringing forward the amendment.

I support the words from the noble Baroness, Lady Bennett, and ask the Minister what the current position is on the future of the community energy fund: the Government seem to support it, but we need to know how it will proceed and when it will come into effect. How comprehensive will the review, to which the amendment refers, be? It appears to be limited to finances, but can the Minister confirm that it will also cover sustainable development?

We heard for the first time, I think, on Report about the framework document, of which the noble Lord said at col. 1204 of Hansard that it will become available only after the Bill has received Royal Assent, yet it would seem to go to the very heart of sustainability and environmental protection, which are so key to this Bill. Can the Minister explain, if the framework document will indeed cover these points, because he linked it to the sustainable definition that he was using, as recognised by the UN, why it is not part of the Bill, why we have not had the opportunity to debate it, and what the relationship will be between the framework document and the contents of the amendment that he has just put forward?