Baroness Eaton
Main Page: Baroness Eaton (Conservative - Life peer)Infrastructure Bill [HL]
Baroness Eaton Excerpts
Baroness Eaton
“Renewable heat incentives
(1) Section 100 of the Energy Act 2008 is amended as follows—
(a) in subsection (2)(a)(i), after “operate the plant” insert “, or any person nominated by the owner”;(b) in subsection (2), for “the Secretary of State or the Authority” substitute “the Administrator” where it appears in paragraphs (a), (d), (e), (h) and (i);(c) in subsection (2), after paragraph (i) insert—“(j) make provision about appeals.”;(d) in subsection (3), before the definition of Authority, insert—““the Administrator” means—
(a) the Secretary of State;(b) the Authority; or(c) if the regulations so provide, a specified person other than the Secretary of State or the Authority;”;(2) Omit section 105(2)(a)(vi) of the Energy Act 2008.”
Baroness Eaton (Con)
My Lords, efficiency has been mentioned rather a lot during the proceedings in this Committee today, and I propose a brief amendment that would improve efficiency and increase the opportunity for all to benefit from the government scheme to introduce renewable heat, which will improve the UK’s most important infrastructure—mentioned earlier by the noble Lord, Lord Whitty—our buildings.
The legislation set out in the Energy Act 2008 does not allow for the assignment of renewable heating incentive payments to a third party as is permitted for feed-in tariffs. Indeed, under current powers, only the owner of the renewable heating system can receive payments for the scheme. The result is that while those with access to finance can benefit from the government scheme, those without such access will not be so fortunate. Many of them are hard-working rural families who, by living off the gas grid, have higher energy bills and a greater tendency to be fuel poor. My amendment would give the Government options on how to open the scheme most efficiently and effectively to wider funding. It would allow the renewable heat incentive to replicate the successes that have been seen with the Solar PV that has been installed so widely.
Baroness Verma
My Lords, I thank my noble friend Lady Eaton for her amendment and I thank the noble Baroness for her comments. I know that we have discussed these issues on many an occasion in the Moses Room. Of course we want to make sure that the scheme is as efficient and cost-effective for the taxpayer as it possibly can be. It should deliver the benefits that have been so clearly outlined, which is something that the Government are strongly keen on pursuing.
Perhaps I may respond to my noble friend on using an alternative to Ofgem. We have seen Ofgem already successfully administering a number of schemes for the department through Ofgem E-Serve, including both the domestic and non-domestic RHI, the Renewables Obligation and feed-in tariffs. Ofgem has significant expertise in the area and has experience of running these programmes. It is also frequently evaluated to ensure that lessons are learnt both by the body and the department in order to improve the customer experience and value for money in policy administration. I think that Ofgem is the right body to be the administrator for these tools. The Government want the best kind of body to reach out to consumers. However, I take the points she raised and, listening to the noble Baroness, we have discussed on many occasions how we can improve the process. It is, of course, a complex tool so we need to ensure that it does not inadvertently exclude the very people who we are trying to assist and help.
As with all things, I must look at the upsides and the downsides of my noble friend’s amendment. What I would like to do is take it away and consider it. The amendment seems very sensible, but I would prefer to give it some thought first. Perhaps I may come back to her on Report with some further consideration.
Baroness Eaton
I thank the noble Baroness, Lady Worthington, for her comments and my noble friend for responding so carefully and thoughtfully to my amendment. I appreciate the fact that it will be considered and look forward to hearing her comments on Report. I beg leave to withdraw the amendment.