Electricity Supplier Payments (Amendment) Regulations 2021

Baroness Ritchie of Downpatrick Excerpts

Tuesday 23rd February 2021 Lords Chamber

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, it is a pleasure to follow the noble Lord, Lord Bourne of Aberystwyth, and I thank the Minister for introducing these regulations.

I am not opposed to the regulations as I believe they are standard practice in the electricity industry. However, like the noble Baroness, Lady Bowles of Berkhamsted, I am curious about certain issues. I am concerned about the impact of the pandemic on the commercial, business and hospitality services and above all on the jobs of many people working in these sectors. I am concerned about the long-term consequences for livelihoods and the impact on the electricity industry and the use of electricity by consumers. I note that there has been a downturn in demand for electricity in the business sector, given that so many people now work from home, and that the House of Lords Secondary Legislation Scrutiny Committee considered this an instrument of interest because it involves changes to business practice and regulation.

The Department for Business, Energy and Industrial Strategy says that it would have preferred to propose new levy rates for the next three financial years to reduce the administrative burden on the sector, as it did in 2017, but that electricity demand has fallen significantly during the pandemic and that this uncertainty makes it difficult to forecast electricity demand beyond the 2021-22 financial year. The department estimates that the amounts of money for business and domestic consumers will not be great.

Notwithstanding that fact, I have some questions for the Minister. Like noble Lords who have previously spoken, I will be quite content to receive those answers in writing if he does not have them today.

Is it possible to estimate domestic electricity consumption and is there a change in such consumption as more people are now working from home as a result of the pandemic? What has been the corresponding level in terms of payments or revenue received? Has there been a read-across to the winter severe weather period, given that electricity companies have models for predicting weather patterns and increases in electricity consumption uptake? Is it possible to estimate on a cross-departmental basis with the Department for Work and Pensions the number of people who are in fuel poverty because their level of income benefit dependency does not allow them to pay for their electricity? That particularly applies to the domestic sector.

In what ways is the Covid pandemic reducing demand for electricity in the business environment, in both the private and public sectors? Will that change with the re-opening of the economy, as per the plan outlined by the Prime Minister yesterday? Has there been a marked decrease in the commercial, business, industrial and public sector environments? Is it possible to put a figure on this? Also, I understand ministerial limits, but does the plan involve BEIS working with the Treasury to get business working again on an incremental basis to underpin our economy? Will the plan provide an update on electricity consumption in the business and commercial sphere? What representations have been received from those sectors?

Will there be further legislative measures beyond 31 March 2021 to prevent insolvencies? The Minister has brought forward previous statutory instruments, the last of which is due to expire at the end of March. I am surprised that no full impact assessment is required for these statutory instruments whenever there is an impact on the uptake of revenue in respect of electricity bills for the business sector. What is the assessment of the impact on electricity bills of changes to people’s lives and working environments as a result of working from home? I look forward to the Minister’s response.