Energy Bill [HL]

Baroness Meacher Excerpts

Committee stage
Monday 19th December 2022 Grand Committee

[Lord Teverson (LD)]

My Lords, I was pleased to put my name to both of the amendments in the name of the noble Baroness, Lady Bennett. Most of what needs to be said has been said. I guess I need to declare my interests: I am a fairly insignificant shareholder of St Ewe community energy, which I have not heard a lot from recently—probably because of the reasons that we outlined here.

The one point I want to make is that this is exactly one of the areas that has been left out of this Bill, as the noble Baroness, Lady Boycott, said. It should be in here. However, to me, although community energy is about generating power, the real importance of it is in allowing communities to come together and be a part of the national and global march forwards to net zero. When there were feed-in tariffs, there was an enthusiasm for people coming together and being part of this essential journey towards a clean economy, a clean society and the environment that communities, families, households and small businesses wanted to see in their local areas. It is not about participation in that big COP 27 or whatever; it is about the local contribution that allows people to participate in one of the most important journeys and fights that we face at the moment, which is about climate change and all the benefits that come from net zero.

Let us have this issue in the Bill. Let us ignite this sector again. Let communities participate in one of the most important objectives that we have on this planet.

[Baroness Meacher (CB)]

My Lords, I rise to add my strong support for Amendments 237 and 238, so ably introduced by the noble Baroness, Lady Bennett of Manor Castle, and her strong team of cross-party supporters. I thank Steve Shaw of Power for People for his briefing. I will speak only briefly, principally to ask a few questions of the Minister; I hope that he will be able to respond to them—if he heard what I just said.

As we face the existential threat from climate change, it cannot be right for small-scale community renewable energy schemes to be rendered unworkable by disproportionate regulatory burdens and costs. Other countries are promoting small-scale energy production, apparently often by community groups, far more effectively. It must be possible for the UK to do the same. I hope that, today, the Minister will agree in principle that this Bill must remove the barriers to community energy production.

As somebody else—I think it was the noble Lord, Lord Teverson—said, if the Government can come up with improved amendments on Report to achieve this objective, I for one will welcome them. Does the Minister accept that the community renewable energy sector has the potential, as claimed by its advocates and the noble Baroness, Lady Bennett, to provide 10% of the UK’s electricity generation? I hope that the Minister can respond to this question because it is incredibly important. If the Government can really do that—come on—surely we have to enable them to do it.

Does the Minister accept that it is perfectly feasible to reduce significantly the financial, technical and operational requirements to become a licensed energy supplier, and thus to reduce significantly the initial £1 million start-up cost involved? Of course, that makes the whole idea of developing these community energy schemes quite out of the question. Can he assure the Committee that the department will work to resolve these issues before Report?

--- Later in debate ---

[Lord Callanan (Con)]

If the noble Baroness is asking me whether I think that there is an advantage to insulation schemes, the answer is of course yes. I am not sure what her question is, but insulation is a great thing.

[Baroness Meacher (CB)]

Finally, if the Minister can bear it, can he tell us in writing whether he feels that these small community schemes could in fact deliver 10% or so of the UK’s electricity energy; and what estimate he has made of the feasibility of reducing all these technical regulatory constraints, which cost so much at the very beginning? He will understand that, if you are going to make a profit, you have to invest up front. Small schemes are unlikely to be able to make that initial investment but it may well be a tremendous bonus to the country in the longer term if the Government were able to help them reduce all these costs at the outset. It would be helpful to have all that set out in a letter if the Minister is able to do so.

[Lord Callanan (Con)]

I am of course happy to set out to noble Lords the details of our position in writing. We want to reduce bureaucracy as much as possible but we have an overriding need to ensure the stability of the energy system. Certain technical requirements need to be met by these schemes. We want to encourage them as much as we possibly can, but that comes with limits. We will certainly write with as many details as we can provide.

Energy Bill [HL]

Baroness Meacher Excerpts

Report stage
Monday 17th April 2023 Lords Chamber

[Baroness Young of Old Scone (Lab)]

My Lords, I support Amendments 134 and 135, so ably led by the noble Baroness, Lady Boycott. I had hoped that my name would be added to them, but something happened along the way.

It is true that everybody is saying that there is real importance in community energy, but the proof of the pudding has to be in the eating. After that initial burst of schemes that the feed-in tariff encouraged, we have really not seen any major growth and the government measures that have been put in place simply have not worked. The amendments are important for two reasons. First, they would enable improved financial predictability and viability for community energy schemes, because, at the moment, there are a number of hurdles that such schemes have to cross. If financial viability and predictability are not there at the start, they lose heart very rapidly in approaching the other hurdles. The second is the issue that has already been touched on: that is the whole business of community “joie de vivre” around energy generation schemes. A surefire way of not having local schemes is where there is a scenario of “all pain and no gain”—where there is a bit of local environmental disruption and a little adjustment to the view. Local communities very rapidly turn off those schemes if they do not see any value for themselves. That is happening more and more at the moment. Local community generation schemes are not very popular since there is landscape blight and no direct benefit. In fact, the figures show that more solar farms were turned down in 2020 at planning stages than had been turned down in the previous four years.

The presence of a local community scheme may even lead to dialogue locally about increased uptake of energy efficiency measures. People become interested in both energy efficiency and demand-side and supply-side issues. That is exactly the sort of community engagement we need if we are really going to see net zero hit. Indeed, Chris Skidmore in his much-quoted net-zero review urged the Government to produce a community energy strategy and to break through the current regulatory and legislative funding barriers. He supported the provisions of the Local Electricity Bill, which these amendments have largely reproduced.

As has been said, the noble Lord, Lord Callanan, assured us in Committee, in his letter of 22 December and in subsequent meetings that the Government want to see more community energy schemes. We are really asking him what in effect will be done, as, so far, government measures have not worked. To echo the noble Baroness, Lady Boycott, we are not seeking subsidy; we are looking for a fair price varied by government, as advised by Ofgem—an increased price, perhaps, where schemes need to be encouraged and a reduced price, perhaps, if scheme growth is going gangbusters. It is about a guaranteed floor price, similar to the contracts for difference from which other renewable sectors benefit.

I thank Octopus and other major suppliers for tackling some of these issues. The reality is, however, that they are not creating the volumes that are required. It is quite a telling fact that Octopus, through Unity, its subsidiary, is now responsible for one-third of all the community energy sector schemes. If one company, busting a gut, can actually be involved in one-third of the community energy sector, it seems to imply that it is not moving very fast. We are not seeing the volume of schemes being created. Other barriers need to be tackled, particularly access to the grid, lack of early-stage feasibility funding and planning complexities, but to accept these two amendments would go a long way to encouraging the community energy sector and to removing the most fundamental barrier, which is the economic one.

It would also be good if the Minister could tell us what the latest timescales are for the review of the electricity market arrangements, because that is another area where the whole business of how renewable energy competes is going to be fundamental. Can the Minister tell us today—if he is not going to accept these amendments, as I am sure he will not do—what the Government are going to do that will be effective in getting the community energy sector off its knees, where it is at the moment?

[Baroness Meacher (CB)]

My Lords, I will not take the time of the House to repeat comments that have already been made. The noble Baroness, Lady Boycott, and others have made a very powerful case for these amendments. It is ludicrous for us not to be enabling community energy production when this does not involve a subsidy and when it could create additional energy sufficient for something like the 2.2 million homes mentioned by the noble Baroness, Lady Boycott. This is a completely neglected area; it can be resolved as set out in these amendments in a straightforward way. The main thing is that these community energy projects need to be able to sell their energy to big suppliers in the locality—those with more than 150,000 customers was the figure quoted, I think. So there is very strong support for these amendments and I hope the Minister will be able to accept them. I cannot see any reason why not: it is not going to cost the Government anything.

[Lord Teverson (LD)]

My Lords, from these Benches I welcome particularly the amendments in the name of the noble Baroness, Lady Boycott. I will not detain the House except to say that it is quite clear that community schemes have not operated effectively for many years. I should declare that I am an insignificant shareholder in a local community scheme in my own home area, which was set up under the feed-in tariffs. The schemes as put forward are not a kind of feed-in tariff regime: they are really looking for stability of price and are not around subsidy. I just say to the Minister that the Government’s overall target is decarbonisation of the grid by 2035: let communities play a big part in that, because one thing that is really important here is that community schemes allow for communities, individuals, households, families and small businesses to participate in the decarbonisation of our economy and net zero. They can be a part of it and that is why these amendments are so important.

On the amendment in the name of the noble Lord, Lord Ravensdale, it is indeed very important that local authorities are involved and are movers in this area. All I can say is that I have to learn from him: he has the ear of the Government and the Minister far more than I do, and perhaps I could have some lessons afterwards about how to be successful in getting amendments into Bills.

Energy Bill [HL]

Baroness Meacher Excerpts

Consideration of Commons amendments
Tuesday 12th September 2023 Lords Chamber

[Baroness Boycott (CB)]

My Lords, I rise to speak to Amendment 274B in my name. I draw attention to my interests in the register.

I will speak briefly about community energy but let me just say that I absolutely support the amendments in the names of the noble Baroness, Lady Blake, and the noble Lord, Lord Teverson. I also very much support the noble Lord’s words, especially about what this measure is going to do to Britain’s reputation, and his reminding us of where this country was just a couple of short years ago as the leaders of COP, playing a proud role on the world stage; that seems to be in tatters right now.

Community energy is wildly popular in the country—it is extremely popular with all sorts of people. I find it puzzling why the Government are not bending over backwards to make this easier and simpler for people. I do not want to get into the arguments about onshore wind, but surely one way to mitigate communities’ concerns about renewable energy is to give people a stake in it so that it is about not just a bit of money but owning something. My sister has lived on a small island in Denmark for 60 years. The people there are completely energy independent. It was the first place I knew of that had wind farms everywhere. Everyone knows how much electricity is coming in and what it is doing. They have ownership and share prices—that is just the way it has been done, and it is kind of brilliant. Why can we not say, “The local energy we produce off that hill heats my towel rail all year round”? They can report, “I co-own it”, “It has paid to put solar panels on the roof of the community hall”, or “It has paid for energy efficiency advice and deals for the other homes in our village”.

In fairness to the Government, they have acknowledged this, but we seem to have spent an incredible amount of time hand-wringing about the difficulties rather than finding the easy, appropriate ways of supporting it. All that the sector wants is a deal comparable with all the other renewable energy that we have in this country, via a guaranteed minimum price. This gives communities the certainty that they need to raise the funds to go ahead. This is true across so much of the alternative energy sector.

I supported the establishment of the £10 million community energy fund but, quite honestly, that is not very much. If you look in the Evening Standard, you find that you can buy a flat for £10 million within about 100 yards of here. It is not going to go far enough. We need real reform, so the commitment made by Andrew Bowie in the other place

“to consulting on the barriers the sector faces when developing projects”—[Official Report, Commons, 5/9/23; col. 281.]

was particularly welcome.

That is why I have come up with this compromise amendment, which I hope that the Minister feels able to accept. It would give the industry a boost to know that there was something coming down the tracks on an agreed timeframe. A problem that we have seen before is consultations which do not receive a response—or do but with serious delays. That is all that I am trying to avoid with this amendment in lieu, which sets a generous timescale of 18 months for a consultation and a further six months for bringing forward proposals to remove the barriers to community energy schemes. This times nicely with the end of the two-year community energy fund and would avoid a potential cliff edge.

I believe that the Minister will appreciate the need for clarity for the sector and the need to reassure over 300 MPs, including 147 Conservative MPs, who backed the original Local Electricity Bill, which recognised the barriers to community energy and proposed remedies. I therefore ask him to give this house more clarity on timescales, or I may be required to test the opinion of the House.

[Baroness Meacher (CB)]

My Lords, I rise extremely briefly to support very strongly the amendments of the noble Baroness, Lady Blake, the noble Lord, Lord Teverson, and my noble friend Lady Boycott. Regarding the amendment tabled by my noble friend Lady Boycott, it is crazy that we have barriers inhibiting the development of renewable energy by community energy schemes. This amendment is a very modest proposal to ensure that those barriers are removed within a reasonable timeframe. I hope that all sides of the House can support these three amendments, but I have particularly spoken to that tabled by the noble friend Lady Boycott.

[Baroness Hayman (CB)]

My Lords, I declare my interests as set out in the register and record my gratitude to the Minister for the Ofgem amendment. In much more elegant language, the noble Lord, Lord Teverson, said that it was a no-brainer. It absolutely is, and Amendment 187A is equally a no-brainer. However, before I say why, I add my support to those amendments tabled by the noble Lord, Lord Teverson, and the noble Baroness, Lady Boycott. Particularly in the latter we have a compromise which would really boost a sector of the energy industry that is of great benefit.

In terms of benefits, no one—including the Government —fundamentally challenges the benefits of improving the energy efficiency of Britain’s old, cold, leaky housing stock. They recognise the benefits for individuals and families in terms of health and reduced bills, but it goes beyond that. There are benefits for the UK because improving energy efficiency reduces demand, helps towards our net-zero target and improves our energy security. It is also potentially of benefit to the taxpayer in reducing the huge expense that the Government take on board when energy prices spike. We have seen how much the Government have spent on heating homes and that money going out of the window because of the state of the housing stock. There are also benefits in stimulating the retrofitting industry, which is a national industry. It goes across all parts of the country and helps with the training and then the providing of secure and sustainable jobs.

We have debated this—I will not say ad nauseam, but certainly at length—not only on this Bill but on the Social Housing (Regulation) Bill and the Levelling-up and Regeneration Bill, because of the issues that I was talking about, such as employment and the fact that the poorest people suffer most from the worst homes, in terms of energy efficiency and their health.