Energy Bill [Lords]

Lady Hermon Excerpts

Wednesday 20th April 2016 Commons Chamber

[Andrea Leadsom]

Yes, my hon. Friend is exactly right. This is a manifesto commitment. Peers should listen to the manifesto commitment of this Government and respect it; that is normal practice, as I understand it.

The Government have taken action on a key concern raised by industry about an investment freeze. The clauses are therefore intended to ensure that projects that meet the core grace period criteria, and which were intended to be able to access the grace period as proposed, are not frozen out of the process. Since proposing this measure, the Government have continued to receive representations from industry suggesting that it supports and welcomes the proposals to address the investment freeze. The Government have also put in place a provision to ensure that an existing grace period for delays caused by grid or radar works will continue to apply.

We now need to get on and complete this Bill. As the hon. Member for Coatbridge, Chryston and Bellshill (Philip Boswell) said in Committee, speaking for the Scottish National party:

“We agree that swift passage of the Bill with clear and consistent RO grace period provisions is needed in order to provide certainty to investors in the onshore wind sector as quickly as possible. The renewables industry fears that the longer legislative uncertainty over RO closure persists, the greater the risk of otherwise eligible projects running out of time to deliver under the proposed grace periods.”––[Official Report, Energy Public Bill Committee, 2 February 2016; c. 217.]

He is right.

In addition, these clauses give the Secretary of State a power to make regulations that would prevent electricity suppliers in Great Britain from using Northern Ireland renewables obligation certificates relating to electricity generated by new onshore wind stations and any additional capacity added to existing wind stations after the onshore wind closure date. This is a backstop power that would be used only if Northern Ireland did not close its RO to new onshore wind on equivalent terms to Great Britain.

Since our last debate on this issue, I am pleased to say that the RO in Northern Ireland has closed to large-scale new onshore wind stations with a capacity above 5 MW with effect from 1 April 2016. The Northern Ireland Executive are currently consulting on closing to stations at 5 MW and below.

[Lady Hermon (North Down) (Ind)]

On the response of the Northern Ireland Executive, we are going into Assembly elections in Northern Ireland, so will the Minister confirm that this is almost too late for the present Northern Ireland Executive? She wants the Bill to be rushed through and completed, but we will not have a running Executive in Northern Ireland until at least a fortnight after the Northern Ireland Assembly elections.

[Andrea Leadsom]

I do not agree that we are rushing the Bill through; there has been an enormous amount of time for consultation and discussion. As I said, the Northern Ireland Executive are consulting on closing the RO to stations at 5 MW and below. I can assure all hon. Members that the Government continue to engage with Northern Ireland with a view to effecting closure on equivalent terms to Great Britain.

Since our last debate on this policy in this House, the Government have introduced two further small changes to the Bill. These will provide for the provisions on the early closure of the RO to new onshore wind in Great Britain, the related grace period provisions, and the backstop power relating to the RO in Northern Ireland to come into force on the date that the Bill receives Royal Assent. Amendments 6A to 6B, 7A to 7S, 7U to 7W and 8A to 8C adjust the early closure date, previously 31 March 2016, to the date of Royal Assent. These changes are made in various places throughout clauses 79, 80 and 81, and to both the grid or radar condition and the investment freeze condition.

I was very clear in our last debate on this issue, as was the Under-Secretary of State for Energy and Climate Change in the other place, Lord Bourne. The Government do not intend to backdate these provisions.

Before I speak to Lords amendment 7T and the Government’s motion to disagree, let me again say that the Government remain committed to delivering our manifesto pledge to end new subsidies for onshore wind. The final policy, which was agreed at our last debate in this House, strikes the right balance between protecting consumer bills and addressing the concerns of the industry.

The Government do not agree that it is appropriate to include the provision in Lords amendment 7T. The Government want this part of the Bill returned to the state in which it left this House last month. The amendment inserted into the Bill in the other place would allow projects that did not have formal planning consent as of 18 June last year into the RO beyond the early closure date. That would include projects that had an indication from a local planning authority that they would receive planning consent, subject to a section 106 or section 75 agreement being entered into. It would also include projects where the local planning committee was minded to approve the planning application before 18 June 2015, but planning permission was not issued until after that date. To be clear, those projects did not have planning permission as at 18 June last year, so they do not meet the grace period criteria proposed by the Government.