Great British Energy Bill

Baroness Hayman Excerpts

2nd reading
Monday 18th November 2024 Lords Chamber

[Baroness Hayman (CB)]

My Lords, I declare my interest as chair of Peers for the Planet. I thank the Minister for his interaction before this Second Reading debate and for the very clear and positive way in which he explained the Bill.

I look forward to both maiden speeches, and it is a particular pleasure for me to speak before the noble Baroness, Lady Beckett. We celebrated last month the fact that it is 50 years since we both entered the House of Commons, in 1974. She, of course, had a much longer career in the House of Commons—and a very prestigious one—than I did; I spent much more time in your Lordships’ House. It is an enormous pleasure to be reunited in the discussion of this important Bill.

I welcome the Bill and the opportunities that it presents in accelerating progress towards the Government’s clean power ambitions and delivering emissions reductions. The objectives the Government have set out for GBE are laudable, but it will be a large, complicated agenda, with a short runway to achieve it.

I do not share the gloom of the noble Baroness, Lady Bloomfield; I think that there are opportunities here. I certainly do not take the view that this is cost, cost, cost that we should not indulge in. We have all known, from the day that the noble Lord, Lord Stern, reported and from the reports that have gone through ever since, that the costs to this country and the costs to this world of not taking action on climate change are, in 10, 20 and 30 years, far higher than the costs of action.

I agree with the noble Baroness, Lady Bloomfield, that, as currently drafted, the Bill is very broad-brush—a skeleton without much flesh. It is clear that much will depend on the statement of strategic priorities and plans, which will be given by the Secretary of State under Clause 5. I hope that, as the Bill progresses through your Lordships’ House, we will be able to see the draft statement of strategic priorities. We need to have clarity here, as there will undoubtedly be some difficult decisions and difficult trade-offs to make as we progress.

In its 2024 progress report, the Climate Change Committee said that in order to make greater progress in decarbonising energy,

“British-based renewable energy is the cheapest and fastest way … The faster we get off fossil fuels, the more secure we become”.


It is really important that the projects that GB Energy participates in, facilitates or encourages—in the words of the Bill—are those which will be most effective in helping to deliver emissions reductions and the decarbonisation of energy.

At present, it is not clear how projects will be assessed and prioritised. Despite what the Minister said at the beginning, the accountability to Parliament that he suggested was there is, in fact, very thin indeed. It consists of the Secretary of State having a responsibility to publish the reports and accounts submitted to Companies House by GBE; frankly, I do not think that is good enough for such an important issue.

Apart from consulting with the devolved powers, which is welcome, there is no requirement for the Secretary of State to consult with any of our expert bodies, such as the CCC, the NESO or the wider energy sector in producing the statement of strategic priorities.

I have no doubt at all about the intentions of the Minister or the Secretary of State, but I gently ask them to reflect on how they would have approached a Bill as skeletal as this one when they were in Opposition. We need to set up GB Energy to be an organisation that is future-proof, robust and sustainable for the next 50 years, not just the next five.

On its funding, it is welcome that GB Energy is receiving £8.3 billion of government funding in this Parliament. However, the crucial question is how this will be split between the different objectives. There will need to be an assessment of what proportion should go to, for example, the reduction of greenhouse gas emissions or improvements in energy efficiency, and some clarity on how competing funding options will be prioritised as necessary. While £8.3 billion sounds like a lot of money—and it is—it can be very quickly spent, and there needs to be hard-headed discussions on how it should be spent. It would be helpful if, in his response, the Minister could say a little about how the Government plan to assess and prioritise projects to ensure that they benefit communities and offer best value for money for the taxpayer.

Energy UK has highlighted that it is important that GB Energy avoids conflicts of interest and market distortions by crowding in to areas where the private sector is already active. There is a real issue as to whether, if there are projects which can easily attract private sector funding, it would be appropriate for a government-owned company to compete. To ensure that it delivers additional emissions reductions, it will need to prioritise areas which are more nascent, need greater investment to scale up and will be less likely to happen without government partnership and support. Equally, it would be a real missed opportunity if a large proportion of the £8.3 billion were to find its way to fund projects already receiving significant public subsidy.

There are a few issues that are not mentioned in the Bill. We know that it is crucial we take the public along with us on the journey to net zero. One of the ways to do that is to give the public a real stake in progress. This is precisely what community energy projects do—or, I should say, could do, if there was a proportionate and fair playing field for them to operate in. I am sure that other noble Lords will raise these issues, which were debated at length during the passage of the Energy Bill 2023. I hope the Minister will be able to give some detail tonight about how GB Energy will be able to help remove the blockages that currently exist.

In his opening remarks, the Minister made it clear that the Government hope that GB Energy will bring in its wake new highly skilled jobs across the UK. Again, there is nothing in the Bill to explain how this will be implemented and how we can ensure that the skills of workers in our oil and gas industries are not lost, and that those workers are supported to transition to new green jobs, should they wish to do so. We also need to ensure that younger workers are being skilled-up to join the new green economy.

NESO’s advice to DESNZ highlighted the huge challenge ahead to achieve a clean power system by 2030 and concluded that this is possible with the right interventions, in a way that does not overheat supply chains and can offer

“Opportunities for local growth and good jobs”


and for

“positive impacts on nature, the environment and public health”.

Before I end, I will focus briefly on those positive impacts on nature. As the Minister knows, we are in a double-headed crisis. Climate change and biodiversity loss are two sides of the same coin: one exacerbates the other. In establishing a new company that will control substantial assets, there will be in many cases an opportunity for it not only to reduce emissions but to work to restore our native biodiversity and towards our mandated Environment Act targets—for example, by incorporating nature-based solutions and habitat restoration in the building of renewable infrastructure. Again, I am sure that is an issue which other noble Lords will wish to debate during the passage of the Bill.

The Bill and the creation of GB Energy offer real opportunity to move forward on the aspiration of achieving a zero-carbon grid, freeing us from the volatility and unpredictability of fossil fuel prices. I look forward to working with other noble Lords to ensure that, when we return the Bill to the Commons, it will establish an organisation that is effective, transparent and accountable, and equipped to take on the challenges it will undoubtedly face.

Great British Energy Bill

Baroness Hayman Excerpts

Committee stage
Tuesday 3rd December 2024 Lords Chamber

[Lord Wigley (PC)]

My Lords, I apologise for coming in late. I am here at the behest of the noble Baroness, Lady Finlay, who apologises to the Committee that she cannot be here to speak in support of Amendment 91, proposed by the noble Lord, Lord Alton. I very much support the points that he made.

The noble Baroness has asked me to make a brief contribution to the debate. I wholeheartedly agree with the points she has asked me to raise. These relate mainly to the importance of tidal power in both its devices, which we heard analysed a moment ago. Tidal range is one part of the possibility of creating tidal power; tidal stream is the other. Tidal stream has not yet been well developed and that could be something for the future, but tidal range most certainly has been. There is a predictability about it which gives it a tremendous advantage.

Tidal range devices use water height. The differential between high and low levels in the Severn, for example, is an enormously important factor. Using the same principles, there are locations suitable for lagoons as well—certainly around the coastline of Wales, in Swansea Bay and up around Anglesey. I understand that the Marine Energy Council recommends reaching a gigawatt of tidal stream capacity by 2035. This would be an enormous contribution.

The noble Lord, Lord Alton, spoke about the possibility that 7% of the UK’s electricity needs could come from the Severn Barrage. That would have the advantage of providing very important construction work, which could make a massive contribution to the south-east Wales economy. Given what has happened recently to the steelworks in Port Talbot, those jobs are very much needed. I hope that the Government will look seriously at this.

The case for this type of electricity generation is overwhelming. I hope the Government will give it the attention it deserves.

[Baroness Hayman (CB)]

My Lords, I rise very briefly, first to declare my interest and secondly to comment on some of the amendments in this group.

I have sat in the Minister’s chair, so I understand that he will not want to add a long list of exclusions or inclusions to the objects of the Bill. Even with that in mind, I hope that he will have listened carefully to the issues that have been raised. They are important and there is a theme to them.

I support the comments of the noble Baroness, Lady Boycott. Two issues have come out of the debate for me. The case for energy efficiency, insulation and heat pumps was made very powerfully by the noble Baroness, Lady Grender, and the noble Earl, Lord Russell. It is important that GB Energy looks to how it can provide a long-term, consistent environment for the policies that each Government pick up and put down. Industry, which has to be a key partner, finds this so frustrating and retrenches from investing in the skills training and expansion that are needed if we are effectively to retrofit the millions of homes in this country.

As we said in the debate on a Question earlier today, this is important not only for carbon reduction. We saw what happened from 2014: emissions from buildings fell by two-thirds after the change in policy. It is therefore really important that someone is boosting this and making sure that it is there for the long term to provide that stable environment. GBE will be in a position to do that, particularly if it is tied in with what we discussed in the Question earlier about the planning framework, again providing a clear and consistent road map for those who will need to invest in this.

The other thing that came out of the debate was that we have to be innovative, look to our strengths and be open-minded about sources of renewable energy. We have to understand that some of those sums that we had in our heads 20 years ago, about the cost of wave power, tidal power or whatever, have changed. They have changed financially but also in other dimensions, such as energy security and our priorities in energy. It is important that GBE is in there supporting those things.

I absolutely support Amendment 17. It may not be for the Bill but, as part of the innovative thinking we need from GBE, we need to look at such things as financial instruments. When we know that solar panels or heat pumps will pay off over the years but people are not going forward with them simply because they cannot afford the capital expenditure, it is important that we look not only at upping the government grant—helpful though that is in some instances. Houses can have mortgages on them for 10, 20 or 30 years. The costs of that investment can be spread in other and innovative ways, so I hope that the Minister can respond supportively to that amendment.

[Lord Offord of Garvel (Con)]

My Lords, I thank my noble friend Lord Naseby for introducing his thoughtful and technical amendments, which no doubt would improve the quality of the Bill should they pass. I also thank all noble Lords who have spoken on this group. Each amendment contributes meaningfully to the Bill’s ultimate aim by ensuring that governance reflects accountability, fairness and long-term sustainability.

I will limit my remarks to Amendments 8, 9, 12 and 13. Amendment 8 proposes the addition of “investing in” alongside “encouraging”. This is quite important, because it seeks a balance between fostering enterprise and ensuring strategic government investment to safeguard our national energy. We want a partnership between government and the private sector. By explicitly including “investing in”, the amendment aligns with our commitment to a dynamic and sustainable energy sector.

Amendment 9, by adding “one or more of”, would bring clarity and flexibility to the Government’s strategic objectives in advancing energy policies. It would ensure that the Government could prioritise specific energy initiatives based on strategic needs without being overburdened by one limiting obligation. It reflects the core principles of pragmatism and efficiency, ensuring that resources can be allocated where they can deliver the greatest impact.

We know that energy security and innovation in this area—referred to by my noble friend Lord Howell as bigger perhaps than the Industrial Revolution—require adaptability. Whether we are investing in offshore wind, nuclear power or emerging technologies, the amendment would allow for a tailored approach that maximised value for taxpayers’ money and strengthened our energy independence. I urge colleagues to support it to make sure that we have smart, effective and flexible governance in the Bill.

My noble friend Lord Naseby’s Amendment 12 is again quite technical. It seeks to insert the phrase “directly or indirectly” into Clause 3, which would again enhance the Bill by acknowledging the interconnected nature of emissions reductions and energy initiatives. This addition would ensure a pragmatic approach to addressing climate goals. Emissions reductions often involve complex supply chains and secondary impacts. Recognising these indirect contributions reflects our understanding of the broader economic and technological dynamics that drive innovation and decarbonisation. For example, investments in nuclear power or advanced grid infrastructure may not lower emissions immediately but they create the conditions for sustainable reductions in the long term, towards 2050 net zero. The amendment therefore provides the flexibility needed to pursue bold initiatives while holding true to the principle of cost-effectiveness for taxpayers. By adopting it, we would make the Bill more robust, practical and reflective of real-world energy systems. I urge my colleagues to support it.

Finally, my noble friend Lord Naseby’s Amendment 13 proposes the substitution of the word “produced” with “derived” in Clause 3. Again, this is a technical and seemingly small change, but it holds significant importance for our energy policy. “Derived” more accurately captures the diverse and evolving sources of energy in our transition to a low-carbon future. Energy comes increasingly from various integrated systems, including renewable sources, nuclear, tidal—as we have heard in great detail—and hydrogen. The term “produced” can be limiting, whereas “derived” acknowledges the broader, more dynamic approach needed to secure our energy future. The amendment provides the flexibility to encompass a wide range of energy sources and technologies, ensuring that our energy policies remain adaptable and forward thinking. It should reflect our commitment not only to reduce emissions but to foster innovation and maintain energy security in the face of global challenges.

Great British Energy Bill

Baroness Hayman Excerpts

Report stage
Tuesday 11th February 2025 Lords Chamber

[Lord Hamilton of Epsom (Con)]

I totally accept that fact, and people have certainly got used to having much bigger reactors on those sites and so will not worry about it. I have ambitions, though, for SMRs that go way beyond existing sites. There are not that many of them in this country, and I hope that we will have an awful lot more. When I come to move my amendment later on in the evening, I will be making reference to the fact that we might have a small modular reactor for specific purposes.

[Baroness Hayman (CB)]

My Lords, I will intervene very briefly on this debate, and I declare my interest as chair of Peers for the Planet. I have just a couple of points on the issues that have been raised. First, to follow up on what the noble Lord, Lord Hamilton, said, the idea of ensuring that communities gain the benefits of infrastructure that is near to them applies not only to small modular reactors but to many other things. In particular, the House knows of my concern for onshore wind and an increase in onshore wind developments. We have to do that in a way so the community, first, understands why we are doing it, and secondly, sees some benefit from those projects, whether on an individual or community level.

The other thing—and I of course welcome the government amendment on community energy—is that I very much agree with the spirit of what the noble Lord, Lord Whitty, said. Some of us get very weary trying to inject the same issues of principle into legislation after legislation. Skills and the needs of the workforce, and the way we practically turn aspirations for green growth and green jobs into satisfying, well-paid, sustainable jobs, has to be done through the nitty-gritty of skills training, passporting and making sure that the opportunities are there for transition and for young people. It is enormously important that the Government and GBE do not lose sight of that.

In exactly the same spirit, we have banged on—if that is a parliamentary phrase—about home insulation and energy efficiency on any number of Bills. If I may say so to the noble Earl, Lord Russell, it is probably slightly inelegant to put that in the Bill as a hypothetical for what GBE might want to do, but the spirit of what he is saying, and the fact that this has been such a recurring theme, is absolutely central: it has so many benefits in saving money, saving emissions, increasing health and ensuring that we lift people out of the poverty that is occasioned by the housing in which they live. I hope that the Minister can give us some encouragement that the warm homes strategy, or whatever we are calling it this time—we have called it lots of different things over the years but have not been very successful in delivering it—will be a high priority for the Government.

[Baroness McIntosh of Pickering (Con)]

My Lords, I will speak to Amendment 22, in my name and those of the noble Baronesses, Lady Boycott and Lady Young, and the noble Lord, Lord Teverson. I congratulate the Government on bringing forward their Amendment 8. I imagine that it will find favour with the House rather than Amendment 22, but I will take the opportunity to press the Minister on a couple of aspects, just to give me reassurance that he means more than the warm words that we see expressed in his amendment.

In particular, how do the Government intend to deal with the current uncertainty over the community energy fund’s future? Is the Minister able to give us a guarantee of how that will pan out? Also, does he intend to take, or encourage GB Energy to take, early action to ensure that the fund will be matched by other funds, as I understand needs to be done, and that clear instructions on the above will indeed be set out in the strategic priorities for Great British Energy, as required by Clause 5?

I am not that familiar with community energy schemes, but I have seen how they operate in Denmark—I declare my interest, being half Danish and taking a great interest in Danish matters. I understand that they are so successful in Denmark because there is a system where local citizens, often organised in co-operatives, which again is very Danish—Arla is a co-operative in the milk industry that many here are familiar with—own a significant portion of renewable energy sources, such as wind farms and heat networks. Does the Minister agree that community ownership is part of the success of these schemes and that that is a path down which he would seek to go?

Great British Energy Bill

Baroness Hayman Excerpts

Report stage
Tuesday 11th February 2025 Lords Chamber

[Lord Brownlow of Shurlock Row (Con)]

My Lords, may I just come back and apologise, as I did not know—

[Baroness Hayman (CB)]

My Lords, we are on Report. Reference was made earlier to the conventions of the House. It seems to me that the debate is getting very diffuse and not within the advice in the Companion about behaviour on Report.

[Lord Rooker (Lab)]

We should give the Chair more powers.

[Baroness Hayman (CB)]

Yes.

[Lord Offord of Garvel (Con)]

My Lords, I remind you all of what the Prime Minister said:

“I stand by everything in our manifesto and one of the things I made clear in the election campaign is I wouldn’t make a single promise or commitment that I didn’t think we could deliver in government”.


The number of £300 is not our number. The number comes from the Labour manifesto and a commitment to the British people.

The great British people think that GB Energy is a new electricity company that is going to deliver them cheaper energy; what we have discovered is that it is actually an investment plan employing 200 people in Aberdeen. It is a big delta: 650,000 jobs compared to 200 jobs rising to 1,000. These are not our numbers; these are the Government’s numbers. All these amendments are trying to do is hold the Government to account on commitments made in the election campaign, and I wish to test the opinion of the House.

--- Later in debate ---

[Baroness McIntosh of Pickering (Con)]

I am grateful for that clarification.

I welcome the government amendment in this group. However, I seek a specific assurance from the Minister as to exactly how and when the Government will ensure that the impact of GB Energy’s activities will not harm sustainable development in the United Kingdom. Why I prefer the wording of my amendment to the Minister’s, and why I regret the fact that the framework document will not be available before the passage of the Bill through Parliament, is because the Environment Act 2021 set out very clear environmental standards that have to be followed in subsequent legislation.

Amendment 40 addresses the issue of Great British Energy operating in such a way as to meet the criteria and environmental standards in the Environment Act 2021, which set out clear standards for environment and animal welfare that any project approved by GB Energy should meet. The projects we have discussed during the passage of the Bill potentially risk criss-crossing the countryside, covering the landscape with intrusive miles of pylons and overhead transmission lines, as well as massive solar farms and battery storage plants, the latter also posing a fire risk. Up to 10% of land currently farmed could be taken out of production, with a consequential effect on farming and food security to create a strand of energy which will bring no local benefits whatever but feed energy into the already well-fed National Grid.

I call on the Government to address offshore wind farms in a clear and pragmatic way, with one planning application for any future offshore wind farm taken at the same time as permission to build an onshore substation, to take the electricity generated and, at the same time, any proposal for onward transmission of the energy through overhead power lines and pylons.

Other damaging aspects of offshore wind farms at severe odds with sustainable development are their impact on fishers and fisheries. Wind farms damage marine life and sea mammals, and interfere with fishers going about their business. I am grateful to the National Federation of Fishermen’s Organisations for its briefing, which clearly highlights the threat from offshore renewables, primarily winds but also wave and tidal.

Ten per cent of UK seas will be designated as highly protected marine areas, where fishing will be banned. The worst-case scenario could result in the loss of half of the UK’s fishing waters, some 375,000 square kilometres: Scotland would lose 56% of its fishing waters and England and Wales 36% of theirs. Even if the worst-case assumptions are not realised, 38% of UK waters are likely to be lost, threatening the very existence of UK fishing businesses and causing severe harm to coastal communities.

I feel that the sentiments expressed in Amendment 40 sum up those also expressed in Amendments 47 and 48, in the name of my noble friend Lord Offord, and Amendment 51, in the name of my noble friend Lord Fuller. All I seek this evening is an assurance that farmland and residential properties will be protected from massive solar farms, battery storage plants and the like, and the impact of major substations bringing electricity onshore from these offshore wind farms. The long lines of unwelcome, intrusive overhead lines transmitting the energy to the National Grid should be removed or reduced and spatial rights for fishers should be recognised. I hope that the Minister will look kindly on the assurance that I seek.

[Baroness Hayman (CB)]

My Lords, I have added my name to the new clause proposed in Amendment 38 by the noble Lord, Lord Hunt of Kings Heath. I thank him and his officials for the amount of time and effort that they have put into finding what is a very good resolution to the issues that we raised at earlier stages in the Bill. Obviously, in some ways, I would have preferred my own amendment as it stood in Committee, which would have put into the Bill an obligation on GBE to contribute to the targets under both the Environment Act and the Climate Change Act.

After discussion, I understand why the Minister wants to put in the phrase “Sustainable development” and to have that contribution. That is indeed the model that we adopted as a House during the passage of the Crown Estate Bill. I would not be happy with this amendment, were it not for the assurances that the Minister has just given at the Dispatch Box on what will be included in the framework document, so that we will actually see reference to contribution to achieving targets under both those Acts in the framework document. We will also see a commitment to tackling the issue of adaptation there, because none of us who has observed or experienced the weather—and the results coming out from international institutions—in the last six months will have any doubt that we have challenges already baked in by climate change and biodiversity loss that have to be met, as well as the efforts to stop things getting worse. I am very grateful for those assurances.

In some ways, a commitment to sustainable development may seem more nebulous than tying down to those particular commitments, but I believe it is really important that we acknowledge that there are differing forces—differing demands and aspirations—that have to be taken into account when we make decisions on infrastructure and investment, or whatever it is. Sustainable development, as defined by the UN, is about taking the economic, environmental and social effects of developments into account when decisions are made. Lots of difficult decisions will have to be made and there are lots of balances that have to be struck, whether about pylons or achieving net zero, and whether about growth or biodiversity and nature. We have to be able to walk and chew gum at the same time, and to actually recognise that all those strands have to be taken into account.

If we are going to get through and make the right decisions, frankly, we will have to be, first, very smart, and secondly, very frank with people about how we assess the different pressures and how we have come to individual decisions in individual cases. I have been very impressed by the work of the Crown Estate, looking at its different drivers and objectives and how it brings those into force when it looks at decision-making for investment, and I hope that GBE will be able to do exactly the same. So once again I end by thanking the Minister for the work he has done in bringing this amendment forward.

[Baroness Bennett of Manor Castle (GP)]

My Lords, it is a great pleasure to follow the noble Baroness, Lady Hayman, for whom I have the greatest respect. I know that the whole of your Lordships’ House applauds her and Peers for the Planet for their enormous amount of work, but I am afraid that, on this occasion, I disagree with her. I speak to Amendment 40, to which I have attached my name, and government Amendment 38, to which the noble Baroness has offered her support. I am afraid that

“must keep under review … sustainable development”

is a very weak form of words.

I understand that the noble Baroness seeks compromise and is taking what she can get. It would be lovely to be in a situation where we can start with a government Bill that says these things and then look to improve it. None the less, in speaking to Amendment 40, I am in the curious position of agreeing with the noble Baroness, Lady McIntosh, about the amendment and totally disagreeing with lots of the things she said. If offshore wind farms are spaces from which fishers are barred, they can become wonderful marine refuges, and if we are talking about damage to the seafloor, then deep sea trawling is the issue we should be talking about, and, most of all, damage to marine life. Indeed, if we are talking about biodiversity, solar farms managed in the appropriate way can be vastly better for biodiversity than arable farmland, in which the soil and the whole environment are totally trashed.

I am aware of the time, so I will not take long, but I want to point to what this amendment says and contrast “take all reasonable steps” to achieve the legally binding targets versus “keep under review”. This is much stronger wording, it is the right wording for a country that has a state of nature that is in a state of collapse, where there is so much that needs to be protected and improved, and for which we have the legally binding targets to which this amendment refers.