Energy Bill [HL] Debate

Full Debate: Read Full Debate

Baroness Smith of Basildon

Main Page: Baroness Smith of Basildon (Labour - Life peer)

Energy Bill [HL]

Baroness Smith of Basildon Excerpts
Wednesday 2nd March 2011

(13 years, 9 months ago)

Lords Chamber
Read Full debate Read Hansard Text
Moved by
1: Before Clause 1, insert the following new Clause—
“Purpose of this Part
(1) The principal purpose of this Part is to deliver energy savings from the domestic building stock, which will make commensurate contributions to—
(a) the achievement of the target contained in section 1(1) of the Climate Change Act 2008 (the target for 2050) and the carbon budget set for each budgetary period under Part 1 of that Act (carbon target and budgeting); and(b) the elimination of fuel poverty by the target date required by section 2(2)(d) of the Warm Homes and Energy Conservation Act 2000 (strategy relating to fuel poverty).(2) In performing functions, exercising powers and reviewing the effectiveness of the green deal under this Part, the Secretary of State must have regard to—
(a) the principal purpose set out in subsection (1); and(b) the recommendations from time to time of the Committee on Climate Change where these are adopted by the Secretary of State.”
Baroness Smith of Basildon Portrait Baroness Smith of Basildon
- Hansard - -

My Lords, I apologise for the slight delay in getting to my feet. I need some assistance from my colleagues, as the noble Lord will know.

These amendments are very similar to those that we brought forward in Committee, but we have taken into account the comments and concerns that the Minister expressed on that occasion. The amendments before us today seek two things. The first is the provision of an annual report to Parliament by the Secretary of State on how the ECO and the Green Deal are fairing. Secondly, they establish the purpose of both these new clauses in the Bill in terms of the Government’s objectives as stated in previous legislation.

In Committee, the Minister was understandably concerned about not imposing a new duty on installers or providers to take account of the recommendations of the Committee on Climate Change. That is not unreasonable, and we took it into account before putting the amendments before your Lordships today. Therefore, these amendments have been slimmed down. They would impose no new duties on the Government other than to provide an annual report—something to which I know the Minister is sympathetic—on the goals and aims, as stated in the impact assessment on the Bill, for carbon reduction and fairness. It is a way of putting the Bill into the context of government policy.

A report by the Secretary of State to Parliament on the operation of the Green Deal would be extremely helpful. Indeed, when dealing with a point raised by noble Lords in Committee, the Minister said:

“The scheme needs to be road-tested to ensure that it works and we must keep a watchful eye on it. Getting these things precisely ordered is a very good thing for the Bill”.—[Official Report, 17/1/11; col. GC 17.]

He will know of the criticisms that were made just yesterday of the Minister in the other place, Greg Barker, when he spoke at the Ecobuild conference in London. Concerns were raised by the UK Green Building Council, and the president of the Royal Institution of Chartered Surveyors said that there was not enough certainty or incentives for the industry, and that, although they supported the Government’s package of measures as being incredibly ambitious, they were concerned that it would not achieve the objectives. Like the Government, we want this Bill to achieve the objectives that have been set. They are ambitious, and some amendments have been tabled to help the Minister to achieve those objectives, to which we know he is committed.

Probably the most helpful parts of the amendments before us today relate to the annual report. The Secretary of State will have the opportunity to come back to Parliament, having looked at how the Green Deal is fairing. In the light of the commitments that the Minister made in Committee, there will be an opportunity for the Green Deal to be tweaked or changed and to see whether more can be done to create incentives. I beg to move.

Lord Whitty Portrait Lord Whitty
- Hansard - - - Excerpts

My Lords, I support the amendment. The Minister will undoubtedly have been advised by officials and the Cabinet Office that it is not normal to put purpose clauses into Bills. However, that has always been nonsense. It is particularly important that we set out clearly in Parliament the purpose of these measures.

I commend the Government on developing the plans for the Green Deal, but undoubtedly not all the details have yet been thought through. Some will be thought through before the scheme is launched, some will appear in codes, some will appear in regulations and some will have to be dealt with in subsequent practice once we see whether the market is mobilised as effectively as the Government wish. However, the purpose will not change. With any changes down the line that the Government find it necessary to make, it is particularly important that we go back to the purpose of the Bill. That purpose is, in effect, twofold: to save energy and therefore carbon dioxide and greenhouse gases, and to reduce the incidence of fuel poverty. Both those need to be addressed and set out in something like a purpose clause with a requirement to report back.

As for fuel poverty, I speak as one of the two Ministers who drew up the original guidelines. My noble friend Lady Liddell was the other Minister who signed the original Act to set up targets for fuel poverty, and it is not an easy subject, but it is important that the Government and Parliament set out the objectives. The contribution towards the elimination of fuel poverty is clearly one such objective. That will not solve the problem, as other measures also need to be taken, but it is a contribution and any subsequent change down the line needs to be seen against it, particularly in relation to the Green Deal.

On the face of it, it is not clear how the basic principles of the Green Deal apply to the fuel poor, particularly those who are in tenanted accommodation, whether with social landlords or private landlords, because the best way of delivering that dimension of the Green Deal may be in a deal with the landlord, albeit that the tenant normally pays the bill. Some complicated arrangements will have to be made. That is not yet in the Bill and I do not expect it to be, but reference back to the objectives and obligations to report annually would help us to keep the objectives of this provision clear. I hope that the Government will adopt something like these clauses in the final version of the Bill, either today or in subsequent proceedings in another place.

Lord Marland Portrait The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Lord Marland)
- Hansard - - - Excerpts

My Lords, I thank all noble Lords who have spoken and want to tell everyone that I am on my best behaviour because my boss is watching, so I will not say anything too controversial or concede too much.

It is a great opportunity for me to thank all noble Lords for the time and effort that they put into Committee to identify issues and work together to make this a much more valuable Bill. That is the expertise of the House. We can contribute, and we have done magnificently. We have given the Bill a thorough road test with great cross-party agreement, and I pay my personal thanks to those on the Opposition Benches for all the work that they have done—through very difficult physical circumstances in the noble Baroness’s case. I am delighted to see her able to get to her feet. She can always have assistance from our side, particularly when going into the right Lobby.

We have sought where possible to accommodate suggestions, but some cannot be achieved within the timeframe available on Report. However, we will endeavour to do so by Third Reading, and then further changes will be made in the other place. Of course, some amendments would not provide the functionality that is required, and even though we have listened very hard to them, unsurprisingly we will not accept them. I hope noble Lords will take that into account when they make their contributions. We have listened and we have all ridden together to make this a constructive document, and again I thank everyone for their support. I do not believe that it is necessary to set statutory powers, as referred to in Amendments 102 and 121, but I agree that there should be an aim for our energy efficiency policies. We will come back with proposals on that for consideration in the other place, which I hope will satisfy the noble Baroness. We cannot achieve that now, but we will be looking to achieve it as we go forward.

I am grateful for the contribution from the noble Lord, Lord Whitty. I was pleased to see that he had a playful smile when he referred to fuel poverty, which is fundamental to what we are trying to achieve. Fuel poverty has increased exponentially and we must put the brakes on that. Much of what we are trying to do with the Green Deal addresses that. My noble friend Lord Dixon-Smith rightly points, as he often does, to the issue of whether we should have continuing annual reports, and so on. Clearly the Government are committed to openness and transparency, and we have an annual report on progress towards our energy efficiency goals. We will consider the operation and performance of our energy efficiency policies, not least the Green Deal and the ECO, which will prominently feature in our reports published under the department’s annual energy statements. Such documents will provide all the information required on the activity of the department, including the Green Deal and ECOs. I hope that that reassurance will allow the noble Baroness to withdraw her amendment.

Baroness Smith of Basildon Portrait Baroness Smith of Basildon
- Hansard - -

I thank the noble Lord for the way in which he has engaged with the Opposition during the Bill’s proceedings. He says that he will take things away and look at them again, which has been a theme throughout the Bill. All the amendments today are within that spirit of co-operation. I feel strongly about them, so I shall press the Minister for clarification. I think that what he is saying might satisfy our requirements, but we will test the will of the House unless I am clear about that.

There are two issues here. One is the annual report on ECOs and the Green Deal; the other is the purpose. Does the Minister intend to bring forward a purpose or aim clause which will specify what the Bill is to achieve in the context of government policy on emissions and other legislation? Will an annual report from the department include information about the Green Deal, such as how many homes have had Green Deal measures installed and what the emissions savings have been? If so, he has gone a long way to meet our concerns. If he is saying that those measures will be brought back either at Third Reading here or in the Commons, I will happily withdraw the amendment, but some clarification would be helpful.

Lord Marland Portrait Lord Marland
- Hansard - - - Excerpts

Forgive me; I thought that I was quite clear on the subject. The department’s annual energy statement will provide details of the progress of the Green Deal and ECOs, which will answer the noble Baroness’s question. Obviously, in providing information about the Green Deal, it will provide information on the amount of activity that we are able to create with it. We are committed to that.

As for the aims, I state clearly that we will look at them, refine them and come back with proposals in the other place, if we can in the timescale available for further debate. It should be very encouraging for the noble Baroness that that will carry on through the passage of the Bill.

Baroness Smith of Basildon Portrait Baroness Smith of Basildon
- Hansard - -

I think that the noble Lord realises the effort it takes me to get my feet, but I will continue to do so throughout the evening. I am very grateful for that explanation; on that basis I am happy to withdraw the amendment.

Amendment 1 withdrawn.
--- Later in debate ---
Moved by
5: Clause 3, page 4, line 27, at end insert—
“( ) Regulations for fees payable under this section may establish a reduced fee for charities and social enterprises applying for initial or continued authorisation as green deal participants.”
Baroness Smith of Basildon Portrait Baroness Smith of Basildon
- Hansard - -

My Lords, I proposed a similar amendment to this in Committee and was greatly encouraged by the Minister’s response, which prompts me to bring it forward again today. In some ways, we might call this the big society amendment. My last role in Government was as Third Sector Minister and in it I saw—as I am sure many other noble Lords in their time in different departments, former Members of the other place in their constituencies and indeed noble Lords in their work in the community all have—how the role of the charitable sector and social enterprises in helping the most vulnerable in society, particularly those who are fuel poor or fuel vulnerable, is something society as a whole has welcomed. I know the Government want to attract those kinds of non-profit making or third sector organisations into public sector provision. However, there is an opportunity here for the wider charitable and social enterprise sector to be involved in the kind of work that it does best in conjunction with Government.

Although the Minister was very encouraging in Committee, I think some noble Lords misunderstood my explanation of this amendment, which merely seeks within the framework regulations, where a fee is payable for the initial or continued authorisation of the scheme, that the fee be reduced for those organisations such as charities and social enterprises. I am perfectly happy, in the welcome spirit of co-operation that the Minister has displayed today, to look at alternative definitions and for him to come back with one.

I accept that many—indeed most—of the providers, installers and operations will be, as the Minister said, market-driven. However, we should do everything we can to encourage those charities, social enterprises and non-profit-making organisations that have a special and specific role in helping the vulnerable, those with special needs, the disabled and those with learning disabilities. I found the Minister’s response last time very encouraging so I thought I would give him another opportunity to come forward. He has been very gracious today in accepting the proposal that has been put forward and I know that he would not want to see—as I would not—any potential assessor or installer excluded from the market when they have the ability to help those that most need it.

The amendment is also about ensuring that we have a Green Deal that reaches as many people as possible—I know we all want to see a big take-up. Attracting those charities, social enterprises and voluntary sector organisations into the market can only help increase the number of households that take up the Green Deal, as well as giving that specific help and support to the poor and the vulnerable. I look forward to the Minister’s response. I feel strongly on this issue and I know he does as well. I hope he can satisfy me on this issue and we are able to withdraw the amendment. However, if we are unable to, we will want to test the view of the House on this.

Baroness Northover Portrait Baroness Northover
- Hansard - - - Excerpts

I thank the noble Lords for their suggested amendments. This amendment seeks to ensure that where the code of practice specifies that an authorisation fee is payable by Green Deal participants, it should be reduced for charities and social enterprises. We recognise that these bodies will have—must have—an important role to play in helping to deliver the Green Deal. We are already considering how secondary legislation could allow for authorisation fees to be set at a variable level, depending on the nature or status of the organisation. We appreciate noble Lords’ desire for more clarity on this matter and I assure them that we are continuing to consider this issue further and will bring back a government amendment if necessary to this effect in the other place. We are seeking to make sure that this is as comprehensive as possible.

I am sure the noble Baroness would agree that we do not want to end up in a situation where, by specifying one or two organisations, we thereby exclude others. We fully accept the notion she is putting forward that the authorisation fee might be variable. We are seeking to work out how best you take that forward so that it is as effective and inclusive as possible, as opposed to being too specific around some particular groups that might be identified now, thus inadvertently excluding others. That is why we are still looking at this. However, we fully support what the noble Baroness seeks to do and if this is best put in primary legislation, an amendment will be brought forward. That will probably be in the other place because of the timing, but we are seeking to work out how best to achieve it. That is why we ask her at this stage to withdraw her amendment so that we can work this out better. We invite her to contribute to the discussions about how best to achieve that. I therefore invite the noble Baroness to withdraw her amendment.

Baroness Smith of Basildon Portrait Baroness Smith of Basildon
- Hansard - -

My Lords, the Minister’s encouragements to me were certainly not misplaced and I am very grateful to the noble Baroness for that answer. I entirely agree. It was never my intention to specify individual organisations or their categories. The variable fees approach is very much the way to proceed and I am happy to work with her to see how best we can achieve that. I look forward to seeing the amendments, if necessary, in the other place. On that basis, I am again happy to withdraw my amendment.

Amendment 5 withdrawn.
--- Later in debate ---
Moved by
8A: Clause 3, page 4, line 46, at end insert—
“( ) The provision made by the code in relation to green deal participants must also extend to matters in connection with energy plans that are promoted or arranged at the same time as green deal plans.”
Baroness Smith of Basildon Portrait Baroness Smith of Basildon
- Hansard - -

I feel that I have the appearance of a jack-in-a-box at this Dispatch Box. Hansard may make of that what it will. The amendments put forward in today’s sixth group—I beg to move Amendment 8A and to speak to the others in the group—all seek to achieve the same aims. They are all supportive and reflect the discussion that we had in Committee. Certainly, our Amendments 8A and 8B look to ensure that protection is there if an assessor identifies within the Green Deal—this also expands to the energy plan—that plans that are promoted or arranged at the same time as the Green Deal plans should also have protection from the same code of practice, so there is no confusion for those who have work undertaken in their homes.

We are certainly very supportive of Amendment 11, as proposed by the noble Lord, Lord Teverson. I think he is trying to raise exactly the kind of issues that we raised in Committee. The amendments before us reflect our discussion in Committee, when I raised the point about having an energy plan from which the consumer could choose their Green Deal plan. That is in effect covered by this amendment. Much of his amendment, and ours, hits the key areas that concern people about the Green Deal. The assessor will identify what measures can be taken to improve energy efficiency. They must act in the best interests of the improver—that is, the consumer—but it is the customer or improver who chooses which measures in the energy plan then go into the Green Deal plan. Subsection (4) of the proposed new clause in Amendment 11, as proposed by the noble Lord, Lord Teverson, ties in with our purpose clause and reporting clause, which the Minister so graciously accepted the need for earlier, but on a smaller scale to let us know the impact by consumer.

Again, the amendment proposed by my noble friend Lord Whitty is excellent. One way to best protect the consumer at any stage is through transparency and openness. If we always ensure that we have those, that fits in entirely with the Government’s approach on other issues as well. Our amendments are very much worth supporting. The key for consumer protection is that if consumers have a Green Deal plan, other measures introduced in their energy plan should all have the same protection, so that the consumer does not feel at a later stage that they have been somehow conned. I believe this will give confidence to the consumer and to the public in taking up the Green Deal.

Lord Teverson Portrait Lord Teverson
- Hansard - - - Excerpts

My Lords, we have had a long and useful discussion about making sure that consumers receive the best deal that they can from the Green Deal. One of the areas that I felt was missing when we considered the original Bill in Committee was a duty for providers, for people who were bringing plans forward to consumers, to ensure that that was the right plan for that household and that family. I thank the Minister for the discussions we have had, and that I know he has had with other parties, on this area. I welcome the fact that the Bill is being brought forward relatively near the beginning of the parliamentary Session so that we can get the Green Deal implemented next year.

In putting the amendment forward, I was looking to get on the record the Minister’s further thoughts about how this area will operate. I have wrestled in my own mind to a large degree with how the tripartite arrangement of the financier, the adviser and the person who does the work will come together. We must avoid a bias in the solution whereby the person who draws up the plan fits it to the provider whom they are dealing with or fits the term of the finance deal to the finance provider, so that we do not have a situation where a biased recommendation is put forward that the consumer then feels they have to accept. How will the people who do the assessment be paid for if they are not connected to the other people?

My conclusion, having thought this through at some length with my meagre intellectual powers—

--- Later in debate ---
In conclusion, I believe that the consumer credit regime and the Bill already contain all the necessary requirements to achieve what is intended in these amendments. I reiterate that confidence is absolutely fundamental to what we are trying to achieve. On that basis, I ask the noble Baroness to withdraw the amendment.
Baroness Smith of Basildon Portrait Baroness Smith of Basildon
- Hansard - -

I am grateful to the noble Lord for another very helpful answer. Perhaps before I say anything specific about the amendments, I may offer him some helpful advice. Both he and I are new to our roles in your Lordships’ House. I am told that one thing that no noble Lord or Attendant ever does is tell my noble friend Lord Davies of Oldham the result of a cricket match. I am also informed that he is rather grumpy because, having recorded the match to watch later, he now knows the result. Therefore, the noble Lord, Lord Marland, should be grateful that it is me and not him sitting next to my noble friend.

The noble Lord has gone a long way towards understanding our concerns. As my noble friend Lord Whitty said, the relationships between the assessor, the installer, the provider and the customer are very complex, and this scheme is not going to work unless we have consumer confidence. However, I am reassured by the Minister’s comments that he understands the nature of the problem and is seeking to resolve it. If, at a later stage, he is able to bring forward regulations that show that energy efficiency improvements under the energy plan that are not part of the Green Deal can still be subject to the same consumer protections, that will be very helpful. It might also be helpful to investigate some of these matters further at Third Reading. However, I am grateful to the noble Lord. I think that he understands why we have concerns—they relate only to a wish to make this work and today he has gone a long way towards reassuring us. Therefore, I am happy to beg leave to withdraw the amendment.

Amendment 8A withdrawn.
--- Later in debate ---
Moved by
12: Clause 4, page 5, line 24, at end insert—
“( ) An assessment made and provided under this section must clearly detail those energy efficiency improvements that qualify under the green deal.
( ) In making an assessment, the assessor must include all energy efficiency improvements options that qualify under the green deal.
( ) Nothing in this section prevents a green deal assessor from identifying energy efficiency improvements in their assessment that—
(a) sit outside the green deal; or(b) collectively exceed the total amount qualifiable under a green deal plan, where this is clearly identified on the assessment.”
Baroness Smith of Basildon Portrait Baroness Smith of Basildon
- Hansard - -

My Lords, the amendments in this group are again about consumer choice and consumer confidence. As we said previously, the main objective of the Green Deal is commendable, although it is possible to go beyond the Green Deal with what is before us. Again, the assessor could potentially also be an improver.

There is no problem in identifying measures over and above those which can be provided by the Green Deal which improve energy efficiency. We welcome that. However, there could be a problem with an assessor who is paid or contracted by an installer or a provider, as the noble Lord said previously, as there could be a conflict of interest. In that relationship, who would make the decision on what are the appropriate measures to be undertaken under the Green Deal?

Very helpfully, the Minister said in Committee that:

“We must allow the consumer to make the choice, but we must ensure that the choice that he makes is regulated with proper standards”.

That is appropriate. Our major concern is that if the assessor tells the customer that a number of measures can be undertaken under the Green Deal, a point made by the noble Lord, Lord Jenkin of Roding, who decides what is appropriate? If the relationship between the assessor and the installer is a financial one, we are then concerned that the customer receives the correct information from the assessor. We have raised this issue before and we are trying to avoid any possible conflict of interest between an assessor and an installer. The Minister also said in Committee:

“In many cases, we envisage the Green Deal provider employing or contracting the assessor. The assessor would identify the potential for energy savings using the standardised methodology”.—[Official Report, 19/1/11; col. GC 66.]

I do not think we have got to the bottom of this difficult point about how the appropriate measures for a home are decided on. In Amendments 12 and 13 we are trying to ensure that any assessment clearly identifies everything that qualifies under the Green Deal. It has to include all energy improvement under the Green Deal; but there is nothing to stop an assessor identifying energy improvements in the early assessment outside the Green Deal or going over and above what the Green Deal includes. Any potential conflict of interest between an assessor’s functions and their connection with any installer or provider can be disclosed in writing. If the improver and the bill payer are aware of that relationship, they are able to make a choice in line with what the Minister said in Committee. That would ensure that at no stage is the improver, the householder, put under pressure, in any way, by an assessor to accept measures that an assessor could be putting forward because of the relationship with an installer. That is difficult and comes back to the independence of the assessor and how that can be achieved. It is similar to the point made by my noble friend Lord Whitty a moment ago.

The excellent amendment in the name of the noble Lord, Lord Berkeley, comes back to the points made at the beginning, which the noble Lord was happy to look into further as regards an annual report and having further information. This is the transparency issue. If the Secretary of State can do a cost-benefit assessment, to identify the benefits of the Green Deal, that would give confidence not just to the consumer but also to the energy industry. Much of it will be in terms of the Green Deal and the industry having the confidence to invest in undertaking the Green Deal.

I hope that the Minister understands why these measures have been brought forward today. We want to ensure that consumers have absolute confidence that they are not being given information that serves the commercial interests of others and to ensure that whatever measures are recommended to them, or that they choose, are in the best interests of energy efficiency for their homes. I beg to move.

Lord Berkeley Portrait Lord Berkeley
- Hansard - - - Excerpts

I shall speak to Amendment 160A which is in this group. It follows on from what my noble friend Lady Smith said about transparency, information and confidence in the field of energy conservation. As noble Lords will know, this is a rerun of Amendment 34 in Committee. I pay tribute to the noble Baroness, Lady Maddock, for her tireless work in supporting energy conservation and for moving the amendment eloquently in Committee. She emphasised the lack of interest of Governments over the years in the issue of saving energy rather than producing more to meet an often unnecessary demand. My noble friend Lord O’Neill of Clackmannan supported her and urged publication of the information.

I am trying again to see whether I can squeeze a little more out of Ministers at this stage. I pay tribute to the Association for the Conservation of Energy which has been tireless in promoting this part of the energy debate on conservation, which is often put into the “too difficult” category by government. The noble Baroness, Lady Northover, responded in Committee and said that the Government are already obliged to report annually to Parliament on the progress towards legally binding carbon budgets. She also said that,

“the principle of this amendment is sensible and laudable, although we feel that the case for specific reporting from Government may be stronger for the energy company obligation”.—[Official Report, 19/1/11; col. GC 107.]

Surely the information on conservation is as important as is the information on energy production.

I remind the House of a few facts given in Committee. The European Climate Foundation reports that emissions from buildings can be reduced by 95 per cent, which breaks down into 40 per cent from reduced demand and 45 per cent as a result of the electrification of heating. It is important to bring all these figures together at least in one report—we can debate whether or not it is annual—given the enormous challenges the Government have in meeting our carbon reduction targets.

It is also worth reminding the House that Chris Huhne, the Secretary of State for Energy and Climate Change, said that the cheapest way of closing the gap between energy demand and supply is to cut energy use. Many other Ministers have said similar things. The Association for the Conservation of Energy has been calling for a cost benefit assessment of energy saving for many years and it asked the Government about six months ago whether they had carried out a long-term assessment of the costs and benefits of energy saving and efficiency as against those of energy generation. The answer was that there was nothing specific in the public domain. I suggest that there should be because consumers need that information. I hope that when the Minister responds he will accept the principle of the amendment and agree that the Government should publish a cost-benefit assessment. How can the Government have properly thought through their overall energy policy without that? If they do not have that information, they should have. If they do have it, perhaps they should publish it.

I refer noble Lords to the Long Title of the Bill, which refers in line 5 to,

“information relating to energy consumption, efficiency and tariffs”.

It would be a small step for the Government to produce a report and then we would know both sides of the equation: the production; and the consumption and conservation.

--- Later in debate ---
Lord Marland Portrait Lord Marland
- Hansard - - - Excerpts

My Lords, as always, there have been some valuable contributions for which I am extremely grateful. To deal first with the amendments tabled by the noble Baroness, Lady Smith of Basildon, it is clearly fundamental that there is transparency and independence, that the reputation of assessors is impeccable, and that we avoid the cowboy culture that could exist, and in certain parts of industry has existed, in the assessment work. That is fundamental to the confidence that consumers must have in the Green Deal. Therefore, we will set out in secondary legislation more detail of the standardised methodology, which will protect the consumer from the cowboy culture and any further abuse.

I thank the noble Lord, Lord Berkeley, whose thoughts on energy efficiency are extremely well known. We are extremely sympathetic to them. Unless we educate people to use less electricity, we will end up using more, and the quickest way to reduce consumption is by using less energy. A lot of the work that we are doing on smart meters in homes will give people an everyday assessment of what electricity they use in their homes. At times, they will find it quite frightening, as I do with my children, whom I have referenced before, when I point to the excellent device we have that is also extremely frightening. The noble Lord, and the noble Baroness, Lady Maddock, rightly referred to the work that ACE has done, which we applaud and listen to in detail. It is fundamental that we develop a pattern of education so that energy use is reduced.

We can readily identify that with the levers that we have available. In October of this year, we will produce our fourth carbon budget report, which will provide evidence of the cost-effectiveness of economy-wide packages under consideration. That report will continue. The costs and benefits to society of particular technologies are assessed through extensive consultation within industry, so a lot of information is provided to us from industry groups. In addition, we provide publications on carbon budgets, energy market reform, feed-in tariffs, CERTs and green deals, so a huge amount of information is provided, which helps us readily to assess the extent to which carbon production and energy use are being reduced.

Baroness Smith of Basildon Portrait Baroness Smith of Basildon
- Hansard - -

I am grateful to the Minister, who has sought to be very co-operative and helpful in his comments. However, two things stand out for me. One is that he is right that there is a great deal of information out there for the consumer. In fact, there is so much that it is totally confusing for most people. The simple cost-benefit assessment that is referred to in the amendment tabled by the noble Lord, Lord Berkeley, would not only help the Government in developing policy but would be helpful to the consumer. Having information readily available is something that we all require.

The Minister welcomed both our amendments, but he did not pick up on one point. If he is able to assure me that he will come back on it later, it would be helpful. The issue relates to information being provided to the improver and the bill payer about the relationship between the assessor and the installer. That is necessary for transparency and openness. If that relationship is open, there can be no suggestion that there is anything underhand or against the interests of the consumer. If there is a doubt in the consumer’s mind, people will not have confidence in the Green Deal. I can see the noble Lord nodding at me, which is always a welcome sign, so I hope that he will look at these issues—he is now making extremely strange faces; I preferred the nod—and addresses these issues to take that point into account. Openness about that relationship is crucial.

On the basis of what he said, and on the basis that he will look again at the matter on which he nodded to me, I beg leave to withdraw the amendment.

Amendment 12 withdrawn.
--- Later in debate ---
Lord Marland Portrait Lord Marland
- Hansard - - - Excerpts

My Lords, Amendment 21 is in an extensive group of amendments that relate to the energy performance certificate. As I have said on a number of occasions, we are extensively reviewing the energy performance certificate to ensure that it is fit for purpose for the Green Deal and that there is no confusion between the certificate’s relationship with buying and selling a home and achieving energy performance under the Green Deal.

As currently drafted, the Bill would apply the energy performance of buildings regulations, with modifications, where a Green Deal plan is present. This would enable Green Deal information to be added to an EPC and kept up-to-date. In this way, we will be able to monitor the progress referred to earlier by other noble Lords and thereby measure the success of the Green Deal’s energy-saving benefits.

Amendments 58, 170, 172 and 174 make consequential amendments relating to parliamentary procedure, extent and commencement. I hope that noble Lords will recognise that these are effective and transparent ways of fulfilling our criteria for disclosure in the Green Deal. I beg to move.

Baroness Smith of Basildon Portrait Baroness Smith of Basildon
- Hansard - -

When we were discussing the number of government amendments earlier, the noble Lord, Lord Jenkin of Roding, made an appropriate comment about how we are all grateful to the Minister for tabling the amendments early. To have early sight of them was indeed helpful as, in the true spirit of the complications of energy legislation, it is sometimes difficult to trace them back and follow them through—that is more of a problem with the following group of amendments—although I am sure that all noble Lord have been able to do so.

The noble Lord has taken on board comments that we made throughout Committee stage about monitoring and having information and transparency. With this group of amendments the Minister has responded to issues raised by the Committee and I am grateful to him for doing so.

Amendment 21 agreed.
--- Later in debate ---
Baroness Smith of Basildon Portrait Baroness Smith of Basildon
- Hansard - -

Once again, I am grateful to the noble Baroness for her comments, which show that the Government have listened to what was said in Committee. She referred in particular to the provision of information where a property changes hands through an executor following a legacy. That issue was raised by my noble friend Lord Davies of Oldham, and I am grateful to the Government for looking at it.

I am very pleased that she has told us now about amendments that she will seek to have tabled in the other place, which will want to scrutinise those proposals. We have concerns—we will have to look at the detail of how this works out—that additional compensation may be charged for early repayment. Indeed, that was a concern raised by the noble Lord, Lord Whitty, in Committee, so I appreciate her informing us now of the Government’s intention.

Another point that I want to make is that I was very pleased at her opening comments on the importance of disclosure of information about charges. She may recall that one of our amendments—I cannot recall whether it was tabled by the noble Lord, Lord Whitty, or by myself, but it was supported by us all—was on pre-payment meters, which often mean that people pay much higher rates for electricity or gas than those of us who pay by direct debit or in response to a bill. One of our proposals in Committee, which was not accepted at the time but which I think the Government said they would look at again, was that greater information should be provided for those customers about exactly how much the Green Deal costs them and how much their energy bill costs. If the Government are bringing in greater transparency so that information on charges can be disclosed, we would like to see that point included. Therefore, perhaps that issue can be looked at at the same time.

Baroness Northover Portrait Baroness Northover
- Hansard - - - Excerpts

I thank the noble Lady for her very positive response to these amendments. We will indeed look at the issue that she has raised.

--- Later in debate ---
Baroness Smith of Basildon Portrait Baroness Smith of Basildon
- Hansard - -

I could not disappoint the Minister. In fact, I was able to see further clarification in his own words. I have sat down with these amendments and looked through them, but they raise an important issue about the complications of energy legislation. I know that the noble Lord and his team sought to be helpful to all Members of the Committee and to those who took an interest in these issues by sending through not just the amendments but some explanatory notes, which were helpful. I am grateful to him for doing that.

While we will continue to scrutinise this legislation, it may be helpful at some stage—probably not at Third Reading but at some later date—if we were to have one of the wonderful seminars that the Minister has organised to look at some of the detail of energy legislation, the direction in which it is going and where it can be consolidated. That would be helpful to all noble Lords considering these issues in future. In the mean time, I am grateful for his detailed and helpful explanation of the amendments in front of us.

Amendment 47 agreed.