Electricity Supplier Payments (Amendment) Regulations 2021

Baroness McIntosh of Pickering Excerpts

Tuesday 23rd February 2021 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

My Lords, I am delighted to follow the noble Baroness, Lady Ritchie of Downpatrick. I thank my noble friend the Minister for introducing the regulations, which I intend to support. I am also grateful to the Secondary Legislation Scrutiny Committee for its report and the two paragraphs it allocated to this issue, which it obviously does not deem to be one of great concern. However, I would like to press my noble friend on a couple of issues arising from that report and the Explanatory Memorandum.

I understand that the regulations and the CfD scheme are the main mechanism for supporting new renewable electricity generation projects in Britain, and that the CfD counterparty enters into and manages CfDs with low-carbon electricity generators, so this is something we wish to support. I want to press my noble friend on whether there have been more surges in electricity supply of late, and whether this is because more of us are working from home, as other noble Lords have referred to, and fewer people are using electricity in the workplace.

Paragraph 33 of the Secondary Legislation Scrutiny Committee’s 44th report sets out the increases that BEIS estimates as the total impact of the new levy rates. They sound very reasonable: 40 pence

“on the average annual household electricity bill”

—noble Lords will be interested to know from my noble friend whether that will go up if we continue to work from home—and

“£30 for a typical small-sized business (using around 250 megawatt hours per year) and £1,200 for a typical medium-sized business (using around 10 gigawatt hours per year).”

The department concludes that rates will be

“less than 0.1% of these users’ electricity bills”,

so I presume that those figures will not have changed.

Paragraph 12.1 of the Explanatory Memorandum attached to the regulations states, quite emphatically:

“The impact on business, charities or voluntary bodies is limited.”


However, as there has not been an impact assessment, we do not know that for sure, so can my noble friend confirm that nothing of concern—to charities or voluntary bodies in particular—was raised in this regard in the consultation?

To what extent is the renewable electricity supply to which the regulations refer going to satisfy all the needs of those of us who will be asked to buy electric vehicles? Under the regulations, what will be the impact on future generations and auctions—particularly the next one—of the fact that more electric vehicles are being driven by private drivers, company drivers and, indeed, public transport, with many buses now running on electricity alone? It greatly concerns me that no one has yet told me—I would be delighted if my noble friend could do so—what the source of all the new electricity to run these e-vehicles will be.

I am still bruised by the fact that, as a rural dweller, I was encouraged to buy a diesel car, which I did, and I am now paying quite expensive tax for the privilege of running it. That is reflected in a higher polluter rate for diesel. I would like to know from somebody, at some time, that we will not pay a premium on electric vehicles because it is a very new form of power for vehicles, as opposed to the combustion engine.

Finally, I refer to paragraph 14.3 of the Explanatory Memorandum, which states that conclusions of the review of the first five years of operation of Section 66 of the Energy Act 2013, which introduced a number of aspects of the operation of the electricity market reform programme, were due and are now delayed. It would have been very helpful to have had the review before Parliament before we are asked to consider the regulations before us today. I understand that the delay is due in part to the fact that this department in particular has been very busy with preparing for the UK’s departure from the European Union and the impact of the Covid-19 pandemic. However, it would be helpful to know today when my noble friend expects the findings of the review to be laid before Parliament and when we might have the opportunity to study them.

With those few remarks, I look forward to my noble friend’s reply, but I wish the regulations before us today a swift passage through Parliament.