Climate Change

Debate between Baroness Laing of Elderslie and Alan Whitehead

Monday 24th June 2019 Commons Chamber

[Dr Whitehead]

That is one of many things we will have to do in the very near future as we address how properly to sort out the new target. As I will come on to say, there is a big list of challenging things we need to do, and that is just one of them. There are many, many new policy guidelines that we need to get into place to get us to that target.

The Committee on Climate Change, established under the Act as the guardian of science in our proceedings on climate change in the UK, reported strongly, as has been outlined, that we need to move to net zero and that we could do it by 2050, within the cost parameters established in the original target, if we put in place the very challenging policies it outlined. We strongly support that small change that means so much.

As the Minister will know, however, that is not the end of the matter. In fact, it is barely the beginning. I therefore want to ask the Minister for some points of clarification and some further information when he comes to respond to this short debate. There are, essentially, four points to consider.

First, the Minister will know all about the carbon budgets, which were admirably and clearly established under the Climate Change Act. They are designed to keep us on track for a steady reduction in emissions and to put in place measures to keep emissions decline on track. It set out three budgets from the 2008 start date, established in total size by the Committee on Climate Change, and required a Government plan to be put into place on how to meet each budget. The Minister will know that while we have done well by international standards in reducing our emissions by 47%—it is much less in consumption emissions, if we look at it that way—that is not a sufficient trajectory for net zero carbon targets. Our current performance, and likely achievements on known policies right now, place us in a disadvantageous position as we seek to adhere to the budgets that will drive emissions down to net zero by 2050.

The carbon budgets are designed—all five of them, to date—to put us on a path for an 80% reduction and 2°, not net zero 1.5°. It is shocking that we are currently failing to get to grips with the later budgets, budgets four and five, even under the circumstances of 2°. We have exceeded our earlier budgets only partially because of policy and partially because of economic circumstances, meeting or exceeding the first two budgets and probably the third.

After that, however, it gets very sketchy. Indeed, the latest updated emissions projections from the Department for Business, Energy and Industrial Strategy show us badly off target: over by 139 megatonnes of carbon dioxide equivalent for the fourth carbon budget, or 7% over on central estimates; and 245 megatonnes of carbon dioxide equivalent, or 13% over the central estimate for the fifth carbon budget. This is at a time when we will need to introduce a radically reduced sixth carbon budget, and subsequent budgets, to meet our new challenges. We are failing even to get to grips with the old targets, which will make our work so much harder when the later budgets come upon us.

What urgent steps are the Minister and the Government taking to get us back on track for the fourth and fifth carbon budgets, on which we are currently failing so badly? I can make an offer to the Minister: if he wants to sit down and sort out a raft of new policies, extended commitments to policy programmes, and extensions of the urgency of existing programmes, we will happily jointly draft those with him, so that there is solid buy-in across the House for that vital initial effort.

Secondly, we received the alarming news recently that the Government seemingly intend to roll over historical surpluses—some 88 megatonnes of carbon dioxide saved from the second carbon budget—to ease the passage of the third carbon budget, thus creating a higher starting point for the fourth and fifth carbon budgets. That move is not completely illegitimate in terms of the construction of the Act, but the Committee on Climate change has always recommended that that should not be done, and that banking and borrowing on future budgets would gravely distort the safe progression downwards of carbon dioxide emissions. Similarly, we should not seek to offset our own account through international emissions allowances, as the Government seem intent on doing.

Will the Minister explain why the Government have moved to set aside emission surpluses from earlier budgets? Will he say now that he will unwind that intention and not use them to inflate future budgets? Will he confirm that international offsets will have no place in future budget setting? We note in the explanatory memorandum to the order that despite the committee’s recommendation in the report that the UK legislate as soon as possible to reach net zero greenhouse gas emissions by 2050, with the target of a 100% reduction in greenhouse gases from 1990 covering all sectors of the economy including aviation and shipping, the Government have, for the time being, merely left headroom in the budgets for international aviation and shipping. Shipping and aviation currently make up 3.2% and 2.1% of global emissions, but this could rise to over 30% if action is not taken alongside other greenhouse gas reductions. What is the Government’s intention with regard to aviation and shipping coming properly and fully into carbon budgets, and why are they continuing to delay what we all know is an essential inclusion if those targets are to be meaningful for the future?

Thirdly, does the Minister recognise, as I am sure he does, that net zero is the practical outcome of the legislation to require a 100% reduction in the UK’s net carbon account? Net zero means that in addition to developing low carbon policies, as we were for the 80% target, we have to develop policies that are essentially carbon negative—that put carbon back into the ground in one way or another to compensate for the remaining positive carbon elements of our overall account. This means that techniques such as BECCS—bio-energy with carbon capture and storage—extended carbon capture and storage, carbon capture from the air and radical afforestation are all important policies for the future target. What plans do the Government have—[Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

I hesitate to interrupt the hon. Gentleman, but before he comes to his further points I hope he is bearing in mind that there is well under an hour left in this debate and that a great many Members wish to participate.

[Dr Whitehead]

Indeed, Madam Deputy Speaker. I assure you that I have about half a page to go, so I hope that that will keep the timetable intact.

What plans do the Government have to proceed urgently with negative carbon policies? We will be on hand to help them if they want to bring in those policies at an early stage.

Finally, the Minister will no doubt have been copied into the recent letter from the Chancellor concerning legislating for net zero, in which he urged that there should not be legislation until a review of the costs had been carried out by the Treasury. The letter was widely regarded as being somewhat climate economic illiterate, in that it set out only the costs and not the benefits of moving forward in this way. As I said, the Committee on Climate Change indicated that in its opinion the GDP cost of 1% to 2% was unchanged from when the 80% target was set—this was presumably approved by the Treasury. Indeed, as Lord Stern reminded us in his seminal report of 2006, which seems a long time ago, the GDP costs of doing nothing might be several times as much.

Will the Minister provide assurance on that point? Indeed, I take it from the fact that we have this legislation, and that it has not been put off to some time in the future, that the Treasury’s rather insidious advice has not been taken on board. Might it not be a good idea to set out in the round and well in advance what the overall costs and benefits of moving to this target will be? I look forward to the jobs in the low-carbon industries that we will set to work replacing our infrastructure, so that it works for a green future; the immense improvements in the quality of our environment that the measure will bring; and the assurance that we will leave a world fit for our children and grandchildren to live in. That surely does not have a price, but, if it does, it is well worth paying.

[Several hon. Members rose—]

Smart Meters Bill

Debate between Baroness Laing of Elderslie and Alan Whitehead

3rd reading: House of Commons & Report stage: House of Commons
Monday 5th February 2018 Commons Chamber

[Dr Alan Whitehead (Southampton, Test) (Lab)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

With this it will be convenient to discuss the following:

New clause 2—Review: Use of powers to support technical development—

“(1) Within 12 months of this Act coming into force, the Secretary of State shall commission a review which shall consider how the extended use of powers provided for in section 1 will support the technical development of smart meters, with reference to—

(a) alternative solutions for Home Area Network connections where premises are not able to access the HAN using existing connection arrangements,

(b) hard to reach premises.

(2) The Secretary shall lay the report of the review in subsection (1) before each House of Parliament.”

This new clause would require the Secretary of State to review how the extension of powers will support technical development of smart meters.

New clause 3—Review: Use of powers to support rollout of smart meters—

“(1) Within 12 months of this Act coming into force, the Secretary of State shall commission a review which shall consider how the extended use of powers provided for in section 1 will support the rollout of smart meters, with reference to—

(a) providing for efficient removal and disposal of old meters,

(b) reviewing the exemptions for smaller suppliers from a legally binding requirement to roll out smart meters.

(2) The Secretary of State shall lay the report of the review in subsection (1) before each House of Parliament.”

This new clause would require the Secretary of State to review how the extension of powers supports the rollout of smart meters.

New clause 4—Review of smart meter rollout targets—

“(1) Within 3 months of this Act coming into force, the Secretary of State must prepare and publish a report and a cost benefit analysis relating to the Smart Meter Implementation programme and lay a copy of the report before Parliament.

(2) The report under subsection (1) shall consider—

(a) progress towards the 2020 completion target;

(b) smart meter installation cost;

(c) the number of meters operating in dummy mode;

(d) the overall cost to date of the DCC;

(e) the projected cost of the DCC; and

(f) such other matters as the Secretary of State considers appropriate.”

This new clause would require the Secretary of State to publish details about the cost and progress of the smart meter rollout with reference to the 2020 deadline.

New clause 5—Requirement on suppliers to provide information on cost of smart meter programme to consumers—

“(1) The Energy Act 2008 is amended as follows.

(2) At the end of section 88(3) (power to amend licence conditions etc: smart meters), insert—

‘(m) provision requiring the holder of a supply licence to include information with consumer bills on the cost to consumers of the Smart Meter Implementation Programme.’”

This new clause would allow the Secretary of State by order to amend licence conditions so that energy suppliers are required to include the cost to the customer of the Smart Meter Programme in all customer energy bills for the period covered by the energy bill.

New clause 6—Smart Meter Implementation Programme: review of cost to consumers—

“(1) Within 3 months of this Act coming into force, the Secretary of State shall commission an independent review of the cost to the consumer of the Smart Meter Implementation Programme.

(2) The review under subsection (1) shall include—

(a) a breakdown of the costs to consumers of component parts of the Smart Meters Implementation Programme including the cost of the DCC;

(b) the potential benefits to consumers of information on the cost of the Smart Meter Implementation Programme being included on energy bills and statements;

(c) a longitudinal estimate of the cost to consumers to date and the projected future cost of the Programme; and

(d) such other matters as the Secretary of State considers appropriate.

(3) The Secretary of State must lay a report of this review before both Houses of Parliament as soon as practicable after its completion.”

This new clause would require the Secretary of State to commission an independent review of the cost to the consumer of the Smart Meter Implementation Programme that must consider the potential benefits to consumers of including a summary of the cost on their energy bills and statements.

Amendment 2, in clause 1, page 1, line 12, at end insert—

“(c) in section 56FA(3) after “including” insert “the supply of such meters to energy companies and”

This amendment would allow the Secretary of State by order to add “the supplying of smart meters to energy companies” to the list of licensable activities.

Amendment 3, page 1, line 19, at end insert—

“(c) in section 41HA(3) after “including” insert “the supply of such meters to energy companies and”

This amendment would allow the Secretary of State by order to add “the supplying of smart meters to energy companies” to the list of licensable activities.

Amendment 1, in clause 6, page 6, line 27, at end insert—

“(15) Prior to making modifications under this section the Secretary of State shall commission an independent evaluation on the potential impact the modifications available to the Secretary of State to secure funding of smcl administration could have on consumer energy prices and shall lay the report of the evaluation before each House of Parliament.”

This amendment would require that, before considering modifications to ensure funding of smcl administration, the Secretary of State must seek independent evaluation of the impact such modifications would have on consumer energy prices.

--- Later in debate ---

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. I hesitate to interrupt the hon. Gentleman, and I appreciate that he is dealing with some complex issues that require explanation, but it may have escaped his notice that he has been at the Dispatch Box for almost half an hour. He might not be aware, but I am, that there are other people who wish to take part in this debate, so he might like to consider bringing his remarks on this particular part of the Bill to a conclusion quite soon.

[Dr Whitehead]

Thank you, Madam Deputy Speaker. I accept that we are dealing with difficult and rather technical issues, and so I thought it was necessary to try to set out for the benefit of the House how these matters might work, but I will of course be very mindful of your guidance to try to make sure, within the restraints of not getting too over-simplified, that I do indeed bring my remarks to a close.

New clause 2, in essence, asks the Minister to consider a specific review to get these arrangements properly under way.

My final question concerns the meters that have been removed as a result of smart meter installation or will be removed because they are SMETS 1 meters replaced by fully interoperable SMETS 2 meters. This problem is not just theoretical; it is happening now. It has several aspects. What about malfunctioning and existing smart meters that are no longer installed and are now redundant? What about the huge number of existing meters that will be removed and need to be disposed of as smart meters are installed? Those meters are not owned by installers but by meter asset providers that finance and ultimately own the meters that are put in. It has been a long-standing arrangement in the industry that meters are not owned by the suppliers but merely read by the suppliers. That means that when a programme is pursued of removing old meters, whether dumb meters or previous generation smart meters, there is a problem in identifying whose meters they are.

The difficulty that we are facing right now—it is not a problem for the future—is that we might see meter mountains arising in this country because the people who are removing the meters do not know who their owners are or who is going to take them away and recycle and dispose of them. I do not want to see, as a result of this roll-out programme, meter mountains, or alps, appearing across the country. We need to be clear about what method of disposal is going to be the most appropriate and workable. If we are not careful, the issue will overwhelm the roll-out, or at least have a significant negative effect on its overall atmosphere. In Committee, the Minister, encouragingly, agreed to set up a roundtable to consider this issue further. New clause 3 now addresses the issue, and I hope that it will be a way of taking it forward.

I have dealt with a number of important questions that have arisen as the smart meter roll-out has progressed. I hope that the roll-out can proceed to a successful and timely conclusion, because that will be important for the future of our energy systems as well as for the future sustainability of people’s electricity and gas supplies, and their ownership of what their bills will look like in future. However, we should not shirk from addressing the real problems that stand in the way of realising that. It is not sufficient to state that all is for the best in the best of possible worlds, and proceed on that assumption. I know that the Minister is working hard to get this right, as are his team in BEIS. The addition of these amendments would give them greater authority and support in making the roll-out work.