Vulnerable Households: Energy Costs

Debate between Baroness Finlay of Llandaff and Lord Callanan

Tuesday 31st January 2023 Lords Chamber

[Lord Callanan (Con)]

Ofgem does not need to persuade the Government to do that. We already have decarbonisation of the grid as one of our prime objectives. The noble Lord is right that we still rely very heavily on gas. It is a falling proportion of our generation, as we roll out more and more renewables, but it is a transition. We are advanced on that transition but we clearly need to go faster.

[Baroness Finlay of Llandaff (CB)]

My Lords, I want to follow on from my previous question about patients at home, some of whom are handicapped children and people on ventilators, using oxygen concentrators and so on; these are pieces of equipment which consume a high amount of electricity. Have the Government undertaken an audit to look at the excess cost borne by these families, where the care is happening at home and such equipment has been installed? Following data from that audit, is there any review of the benefits available in those situations, particularly where there are young people who are extremely handicapped but living at home?

[Lord Callanan (Con)]

Many of those families are on benefits and I outlined earlier some of the support that is being offered. Ofgem also requires energy suppliers and network operators to maintain a priority services register and to provide free non-financial support to people in vulnerable situations with their energy. Customers in such a situation should contact their supplier and their network operator to register.

Prepayment Meters: Pricing

Debate between Baroness Finlay of Llandaff and Lord Callanan

Tuesday 11th October 2022 Lords Chamber

[Lord Callanan (Con)]

I am afraid that the noble Baroness is incorrect: using a prepayment meter is not the most expensive way of paying for your gas and electricity. Actually, normal credit is the most expensive way. The cheapest way is direct debit; slightly more expensive is prepayment; but the most expensive way is credit. The problem with what the noble Baroness is saying is that if we were to equalise the charges, and there is actually a higher percentage of customers who are fuel poor who are paying by direct debit, they of course would have to bear increased costs to take account of any reductions for prepayment customers.

[Baroness Finlay of Llandaff (CB)]

My Lords, will the Government ensure that all children and seriously ill adults in receipt of the new SR1 benefit and being cared for at home are moved to the lowest energy cost tariff, irrespective of the type of meter and system of payment in place? Will the Government ensure that they are provided with emergency supplies in the event of any power cuts in their area, particularly in the winter, as power to their equipment, such as home ventilation, oxygen concentration and so on, is absolutely essential to their care at home?

[Lord Callanan (Con)]

The noble Baroness makes a very important point. Obviously, we are doing everything we can to make sure that there are no blackouts, but if that very unlikely eventuality comes to pass, of course we will want to do all we can to make sure that the most vulnerable are protected.

Low-Income Families: Energy Cost Support

Debate between Baroness Finlay of Llandaff and Lord Callanan

Tuesday 6th September 2022 Lords Chamber

[Lord Callanan (Con)]

I am not quite sure that I understand the noble Lord’s point. Of course, all of the appropriate documentation would be produced. With a lot of these schemes, it is easy to bandy around large numbers, as we have seen recently, but they take a lot of time to implement. Officials in my department have been working solidly over the summer to implement the last package of announcements—the Energy Bills Support Scheme—which is why it is now ready to go, from the first of next month. A considerable amount of very swift work would be required to implement a new package as well.

[Baroness Finlay of Llandaff (CB)]

Do the Government recognise that there are clinically vulnerable people whose lives depend on the equipment they have at home, such as oxygen concentrators, pressure-relieving mattresses and ventilators, as well as warmth in cold weather, of course? These people must be placed on a “clinically vulnerable” list that must be kept up to date to ensure that their electricity supply is not cut off if they are unable to pay their bills. They need additional financial help; otherwise, as has been suggested, they will end up being emergency hospital admissions to an NHS that already cannot cope with the pressures on it.

[Lord Callanan (Con)]

I agree with the noble Baroness. She listed one particularly vulnerable group but there are others, as well as many small businesses, who will suffer because of the high energy prices at the moment. We are all aware of that and we all know the problem. Of course, coming up with solutions is difficult and potentially expensive, but we are working on it.

Carers: Unpaid Leave

Debate between Baroness Finlay of Llandaff and Lord Callanan

Tuesday 14th June 2022 Lords Chamber

[Baroness Finlay of Llandaff (CB)]

My Lords, do the Government recognise that it is a good investment to allow people unpaid leave when they are under enormous pressure? Without doing that, you end up having people with mental health disorders and an ongoing cost to society in the future through sick leave and so on. I hope that the Government will recognise that and, when it comes to those eligible for SR1 benefits, make it one month of unpaid leave.

[Lord Callanan (Con)]

We certainly recognise the value of carers, and indeed they have a substantial package of support. As I said, we are committed to this policy and to legislating on it.

Electricity Capacity (Amendment) Regulations 2021

Debate between Baroness Finlay of Llandaff and Lord Callanan

Wednesday 21st July 2021 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, before outlining the provisions made by this draft instrument, I will provide the Committee with a brief reminder of what the capacity market is and does. The market is at the heart of the Government’s strategy for maintaining security of electricity supplies in Great Britain. It secures the capacity needed to meet future peak electricity demand under a range of scenarios through competitive, technology-neutral auctions, normally held four years and one year ahead of the relevant delivery year. Those who win capacity agreements, known as capacity providers, commit to providing capacity during periods of system stress in exchange for receiving capacity payments. Capacity payments are funded by electricity suppliers, which recover this cost from electricity consumers.

Since its introduction in 2014, the capacity market has succeeded in ensuring secure electricity supplies at a low cost to consumers. Furthermore, it has a proven track record of facilitating investment in new-build capacity. To date, the capacity market has supported investment in over 13 gigawatts of new capacity, including smart technologies such as battery storage and demand-side response.

The most recent auctions, which took place in March this year, were successful in securing all the capacity needed to meet peak demand through to 2024-25. This year, for the first time, as a result of the carbon emissions limit introduced to the capacity market in 2019, coal-fired plant did not participate in the four-year-ahead capacity market auction, nor will it be able to participate in any future four-year-ahead auctions. This is just one of the steps that we are taking to help to align the capacity market with our broader decarbonisation objectives on the road to net zero emissions by 2050.

In 2019 we published our five-year review of the capacity market. In it, we found that the capacity market was fundamentally meeting its objectives. However, we identified a number of areas that could be improved through incremental change, many of which have since been implemented through subsequent amendments. That has ensured that the capacity market remains the best way to ensure security of supply at the lowest cost to the consumer. Most years, we also make adjustments to the legislation based on our day-to-day experiences of operating the capacity market in order to ensure that it continues to function effectively.

In that context, the draft instrument before us today makes three technical improvements that will address issues in the functioning of the capacity market that we have encountered over the past year. Specifically, a number of capacity providers had agreements terminated last year but were unable to transfer their obligations to other providers through the capacity market’s secondary trading market. To reduce risks to security of supply, the draft instrument aims to remove the barriers restricting the trade of obligations following termination. This will improve the flexibility of the secondary trading regime and make it easier to replace capacity that closes prematurely and at short notice.

The past year also saw a large number of appeals by prospective capacity providers whose applications to participate in the capacity market had been rejected, often for minor administrative errors. The draft instrument aims to make clearer that the capacity market delivery body—the organisation that delivers the capacity market—can accept information that corrects such errors when determining these appeals. That will help to reduce the risk of applicants being rejected due to minor or administrative errors that could otherwise have a detrimental impact on the level of competition in the auction.

Finally, the draft instrument aims to allow capacity providers who have had the duration of their agreements reduced as a sanction for non-compliance with certain requirements the option to appeal a decision to the Secretary of State. We acknowledge that a reduction in agreement length could have significant impacts on the viability of projects, and we therefore believe that it is right that capacity providers in such a situation should be given the right to appeal.

To complement this draft instrument, we have put forward an amendment to the capacity market rules, which was laid before the House on 5 July 2021. The amendment rules make a number of additional technical improvements. Notably, they update the carbon emissions limits to introduce new formulae that allow for a better reflection of the actual carbon emissions of certain generators, such as those equipped with post-combustion carbon-capture technology.

The rules amendments also extend some of the coronavirus easements which were introduced and debated in this House last year, in recognition that coronavirus has impacted the ability of capacity providers to meet some of their obligations under the capacity market. The extension of some of these arrangements will help providers in coping with the continuing impacts of the pandemic.

In conclusion, this draft instrument introduces a number of technical provisions which are intended to address issues that we have identified over the past year through our experience of managing the annual delivery cycle of the capacity market. Therefore, these technical provisions are necessary to enable the continued efficient operation of the capacity market in delivering on its objectives. I therefore commend this draft instrument to the House.

[The Deputy Chairman of Committees (Baroness Finlay of Llandaff) (CB)]

I call the noble Lord, Lord Bradshaw. Lord Bradshaw? We seem to have lost the noble Lord. We will therefore move to the next speaker and then return to the noble Lord, Lord Bradshaw. I call the noble Lord, Lord Bhatia.

United Kingdom Internal Market Bill

Debate between Baroness Finlay of Llandaff and Lord Callanan

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Monday 23rd November 2020 Lords Chamber

[Baroness Finlay of Llandaff (CB) [V]]

Does the Minister agree that good governance requires a balanced board but it also requires that each appointee fulfil the person specification as set out to ensure such balance, that they declare any interest in a relevant discussion and that they may have to withdraw during that discussion? That is all laid out for the running of an open and transparent process within a board as well as for an open and transparent appointments process. Does he further agree that it would be an incredibly narrow person specification that expected people to have only one skill, relating only to their devolved Administration experience, and that they would be coming forward with a broad range of skills to complement a balanced board?

[Lord Callanan (Con)]

There were a number of questions there, but of course I believe that there should be an open and transparent appointments process, and that individuals appointed should possess a broad range of skills—that seems self-evident.

United Kingdom Internal Market Bill

Debate between Baroness Finlay of Llandaff and Lord Callanan

Committee stage & Committee: 3rd sitting (Hansard) & Committee: 3rd sitting (Hansard): House of Lords
Monday 2nd November 2020 Lords Chamber

[Lord Callanan (Con)]

I thank those hardy souls who have stayed for this brief debate. Amendment 143, tabled by the noble Baroness, Lady Finlay, is concerned with a proposed role for the CMA in the laying of regulations on the application of the market access principles. It builds on the earlier Amendments 6, 78 and 104, which concerned the scope within which the UK market access principles proposed in the Bill will apply. I understand that the noble Baroness has tabled this amendment on behalf of the Welsh Government, and I thank the Welsh Government for their positive engagement on the Bill so far. The UK Government look forward to continued and constructive future engagement with them on more aspects of these proposals.

Before I turn to the detail of this amendment, I note the previous discussion on similar amendments also tabled by the noble Baroness, Lady Finlay, which would have narrowed the scope of the market access principles. As I set out then, those amendments would, in combination, prevent the market access principles from applying in time, at the end of the transition period. Earlier, I set out that the lengthy process the amendments put in place before the principles can apply, including the need to exhaust the framework discussions first, would mean a considerable delay in securing business certainty that trade can continue unhindered within the UK’s internal market. Amendment 143 would add an additional layer of bureaucracy to that process.

In our view, it would also problematically risk bringing the CMA into potentially contentious decision-making and mean its role was weighted towards supporting the Secretary of State over the devolved Administration counterparts. This contrasts sharply with our vision for this, which is to ensure that the OIM’s expert reporting is available to all four administrations equally. Above all, however, the advice provided by the OIM will be economic in nature. Its panel will have expertise across intra-UK trade, regulatory impacts on business and competition effects, which is one reason why the Government chose to establish it within the CMA. We had that debate earlier.

The office for the internal market will not be equipped, therefore, to opine on matters related to animal welfare or environmental protection. To lay this obligation on the OIM would bring a significant risk of duplication of the remit of other public bodies, which would cause considerable confusion for the many stakeholders in this field. For these reasons, and the uncertainty and confusion that this and other related amendments would generate for businesses and citizens, the Government regretfully cannot support them, and I hope the noble Baroness is able to withdraw.

[Baroness Finlay of Llandaff (CB) [V]]

My Lords, I am grateful to the Minister for recognising the staying power of some noble Lords, because we have had three days of this debate. I am most grateful to the noble Lord, Lord Fox, for going through some of the aspects of this amendment in more detail and clearly pointing out that its aim is to establish a level playing field, at every level. There has to be a level playing field, because it is the only way in which the four nations will eventually be able to work together properly.

I echo the words of the noble Lord, Lord Stevenson, and I am grateful to him for stating that there is a need to have common frameworks at the centre of the Bill. This is something to which we will return on Report, because the Bill, as it is written, does not make this clear at all. In the way it is written at the moment, it looks as if the common frameworks are almost disposable. We need to come back to that.

I am glad that the Government recognise the involvement and commitment of the Welsh Government to have positive discussions, and I know that from the Wales end that that is true. They want to engage and come to a good solution. They want business certainty just as much as anyone else; they want less bureaucracy just as much as anybody else, but they need to know there will be a level playing field and fairness at the end of the day. That is why the common frameworks were so attractive, and why people have worked so hard towards them and are committed to carrying on working towards them.

Having said that and knowing that we need to have further discussions on this and that we will return to this on Report, I beg leave to withdraw the amendment.

Covid-19: Business

Debate between Baroness Finlay of Llandaff and Lord Callanan

Wednesday 13th May 2020 Lords Chamber

[Lord Callanan]

I am indeed happy to confirm to my noble friend that we are very happy to work with all responsible trade unions, and we included them in developing this guidance and we are happy with the many constructive contributions that we receive. We continue to work with them on developing sensible guidance for business that gives UK workers the utmost confidence that they can return to work safely. Of course, we will always consider any new, sensible suggestions.

[The Deputy Speaker]

Lord Hendy. Lord Hendy? We do not have Lord Hendy, so I call Lord Bilimoria.

--- Later in debate ---

[Lord Callanan]

We have extended the scheme significantly to support firms through the transition out of lockdown. We are doing right by them and expect those firms to do right by their staff. As the economy gradually reopens, it is fair that firms begin to pick up some of the cost of their workers’ salaries, but we will of course want to do this in a specific and phased way to make sure that these businesses can manage to survive and trade their way back to success.

[The Deputy Speaker]

After the noble Baroness, Lady Ritchie of Downpatrick, I will call the noble Lord, Lord Hendy. I call the noble Baroness, Lady Ritchie of Downpatrick.

--- Later in debate ---

[Lord Callanan]

My noble friend makes a very good point. I agree that this crisis will result in a long-term increase in the number of people working from home. When an employee must work from home, for example because of the crisis, the employer can pay them a small amount per week, free from income tax and national insurance contributions, to cover additional costs such as heating and power. Alternatively, of course, they can reimburse their actual expenditure. I will certainly ensure that my noble friend’s comments are passed on to the Treasury for consideration for any future tax changes.

[The Deputy Speaker]

My Lords, that concludes the questions on the Statement. I thank all noble Lords for their concise questions and the Minister for his concise answers. The Virtual Proceedings will now adjourn until a convenient point after 8 pm for the Urgent Question repeat.