Energy Bill [Lords]

Lindsay Hoyle Excerpts

Report stage
Tuesday 5th September 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

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

[Mr Speaker]

With this it will be convenient to discuss the following:

Government new clause 63—Renewable liquid heating fuel obligations.

Government new clause 64—Regulations under section 92(1): procedure with devolved authorities.

Government new clause 65—Regulations made by Secretary of State: consultation with devolved authorities.

Government new clause 66—Regulations under section 292 and 293: procedure with devolved authorities.

New clause 1—Community benefits relating to onshore wind farms—

“(1) Within six months of the date on which this Act is passed, the Secretary of State must prepare and lay before Parliament a report setting out proposals for ensuring that local communities benefit from onshore wind farms.

(2) The report under subsection (1) must set out, but is not limited to, proposals for—

(a) 5% of the gross revenue of new wind farm, solar, hydro and other renewable developments generating over 1MW to be paid into community benefit funds;

(b) widening the distance of communities around new renewable developments which receive shares of community benefit funds, with the aim of limiting the wealth disparity amongst rural communities; and

(c) ensuring that communities surrounding wind farms have a statutory right to benefit from local renewable energy development.”

New clause 2—Prohibition of new coal mines—

“(1) Within six months of the day on which this Act is passed, the Secretary of State must by regulations prohibit the opening of new coal mines and the licensing of new coal mines by the Coal Authority or its successors.

(2) Regulations under this section are subject to the affirmative procedure.”

New clause 3—Prohibition of energy production from coal—

“(1) The Secretary of State must by regulations provide for the UK to cease energy production from coal from 1 January 2025.

(2) Regulations under this section may amend primary legislation (including this Act).”

New clause 4—Flaring and venting—

“(1) The Energy Act 1976 is amended as follows.

(2) In section 12, after subsection (5), insert—

“(6) The Secretary of State may not grant consent under this section after 1 January 2025; and any consent granted under this section ceases to have effect from 1 January 2025.

(7) Paragraph (3)(a) of this section ceases to have effect from 1 January 2025.”

(3) In section 12A, after subsection (5), insert—

“(6) The OGA may not grant consent under this section after 1 January 2025; and any consent granted under this section ceases to have effect from 1 January 2025.””

This new clause is intended to ban flaring and venting of natural gas after 1 January 2025.

New clause 5—Date of cessation of issuing of oil and gas exploration and production licences—

“(1) Within three months of the day on which this Act is passed, the Secretary of State must establish an independent body to advise on the date after which no new licences for oil and gas exploration and production should be issued.

(2) The body must make its recommendation to the Secretary of State not later than three months after the day on which it is established.

(3) Not less than three months after the date on which the Secretary of State receives the body’s recommendation, the Secretary of State must present to Parliament legislative proposals to give effect to the recommendation.”

New clause 6—Net zero power supply—

“(1) It is the duty of the Secretary of State to ensure that the aggregate amount of net emissions of carbon dioxide and net emissions of each of the other targeted greenhouse gases associated with the supply of power in the UK in 2035 is zero.

(2) The Secretary of State must by regulations provide for the means of calculation of net emissions of carbon dioxide and of each of the other targeted greenhouse gases for the purposes of subsection (1).

(3) The means of calculation provided for in regulations under subsection (2) must be consistent with the means of calculation of the net UK carbon account for the purposes of section 1 of the Climate Change Act 2008.

(4) For the purposes of this section a “targeted greenhouse gas” has the same meaning as given in section 24 of the Climate Change Act 2008.”

This new clause is intended to provide for the UK’s power supply to be net zero by 2035.

New clause 7—Energy Charter Treaty—

“Within six months of the day on which this Act is passed, the Secretary of State must initiate procedures for the United Kingdom to withdraw from the Energy Charter Treaty.”

New clause 8—Community and Smaller-scale Electricity Export Guarantee Scheme—

“(1) Within six months of the passing of this Act, the Secretary of State must by regulations require licensed energy suppliers with more than 150,000 customers (“eligible licensed suppliers”) to purchase electricity exports from sites including those operated by community groups, that generate low carbon electricity with a capacity below 5MW.

(2) Fossil fuelled local power plants with a capacity of less than 5MW are not eligible for participation in the Community and Smaller-scale Electricity Export Guarantee Scheme, with the exception of a local combined heat and power plant that generates electricity ancillary to its purpose of providing heat for local heat networks.

(3) “Fossil fuel” has the meaning given in section 104(4).

(4) Licensed energy suppliers with fewer than 150,000 customers may also purchase electricity exports from the sites defined above provided that they do so on the terms set out by the regulations.

(5) The regulations must require that eligible licensed suppliers—

(a) offer to those sites a minimum export price set annually by the Gas and Electricity Markets Authority (“GEMA”),

(b) offer to those sites a minimum contract period of five years, and

(c) allow the exporting site to end the contract after no more than one year.

(6) Within six months of the passing of this Act, GEMA must—

(a) set an annual minimum export price for those sites that has regard to current wholesale energy prices and inflation in energy prices and the wider economy,

(b) introduce a registration system for exporting sites meeting the requirements set out in subsection (1) and wanting to access these export purchases,

(c) define specifications for the smart export meters required by such sites,

(d) define “low carbon electricity” in such a way that it includes renewable generation technology and may include other technology with extremely low carbon dioxide emissions,

(e) define requirements for an exporting site generating low carbon electricity with a capacity of less than 5MW to be registered as a Community or Smaller-scale Energy site, and maintain a register of such sites.

(7) To access the export purchase agreements defined in this section exporters must—

(a) register their site with GEMA,

(b) install a smart export meter that meets specifications defined by GEMA, and

(c) notify GEMA if their ownership structure meets the definition of a Community or Smaller-scale Energy site.

(8) All licensed suppliers providing such purchase agreements must report annually to GEMA—

(a) the number and capacity of Community or Smaller-scale Energy sites that have been offered contracts to purchase electricity and the number of these that agreed those contracts,

(b) the total amount of electricity purchased under these agreements, and

(c) the price paid for that electricity.

(9) OFGEM must make and publish a report annually on the operation of the export purchase agreements, setting out—

(a) the number of Community or Smaller-scale Energy sites contracted with licensed energy suppliers under this section and the total amount of electricity purchased,

(b) the licensed suppliers contracting with Community or Smaller-scale Energy sites and the amount of electricity each has purchased,

(c) an assessment of how the mechanism is performing and the contribution it is making to delivering secure and low carbon electricity supplies, and

(d) recommendations on how the mechanism could be improved.

(10) Regulations under this section are subject to the affirmative procedure.”

New clause 9—Community and Smaller-scale Electricity Supplier Services Scheme—

“(1) Within six months of the passing of this Act, the Secretary of State must by regulations require licensed energy suppliers with more than 150,000 customers (“eligible licensed suppliers”) to offer a Community and Smaller-scale Electricity Supplier Service agreement to any registered Community or Smaller-scale Energy site under section (Community and Smaller-scale Electricity Export Guarantee Scheme) for the purposes of allowing that site to sell electricity to local consumers.

(2) The Community and Smaller-scale Electricity Supplier Service agreement will require licensed suppliers to make a community or smaller-scale energy tariff available to consumers local to the exporting site that has regard to the export price paid or that would be paid to that site under section (Community and Smaller-scale Electricity Export Guarantee Scheme).

(3) The eligible licensed supplier may limit the total number of consumers the community or smaller-scale energy tariff is available to such that the total annual energy sold under the tariff is broadly equivalent to the total annual energy generated by the site.

(4) The eligible licensed supplier will be the registrant for the meters of any local consumer purchasing energy under the community or smaller-scale energy tariff.

(5) The eligible licensed supplier may charge a reasonable fee for the provision of services under this section provided that it has regard to distribution, licensing and regulatory costs and any guidance provided by GEMA.

(6) The eligible licensed supplier must return any money raised through the sale of energy under a tariff set up under this section to the Community or Smaller-scale Energy site, save for the fee allowed under subsection (5).

(7) Eligible licensed suppliers must report annually to GEMA on—

(a) the number and capacity of community energy groups or smaller-scale sites offered Community and Smaller-scale Electricity Supplier Service agreements and the number who have contracted to use them,

(b) the total amount of electricity purchased under these agreements, and

(c) the tariffs for each agreement.

(8) GEMA must—

(a) produce guidance on the level of community or smaller-scale energy tariffs and on the reasonable charges that eligible suppliers may charge for Community and Smaller-scale Electricity Supplier Service Agreements,

(b) make and publish a report annually on the operation of the export purchase agreements, setting out—

(i) the number of community energy projects or smaller-scale sites contracted with licensed energy suppliers under this section and the total amount of electricity purchased,

(ii) the licensed suppliers contracting with community energy groups or smaller-scale sites and the amount of electricity each has purchased,

(iii) an assessment of how the mechanism is performing and the contribution it is making to delivering secure and low carbon electricity supplies, and

(iv) recommendations for how Community and Smaller-scale Electricity Supplier Service agreements could be improved.

(9) Regulations under this section are subject to the affirmative procedure.”

New clause 11—Enhancing rewards for solar panels—

“Within six months of the day on which this Act is passed, the Secretary of State must prepare and lay before Parliament a report on enhancing the reward under the Smart Export Guarantee for customers who install solar panels.”

This new clause seeks to enhance the reward under the Smart Export Guarantee for energy customers who install solar panels.

New clause 12—Prohibition on flaring and venting and enhanced measures to reduce fugitive methane emissions—

“(1) The Secretary of State must by regulations—

(a) prohibit the practice of flaring and venting by oil and gas installations other than in an emergency within the jurisdiction of the United Kingdom,

(b) require monthly leak detection and repair inspections to reduce fugitive methane emissions,

(c) require a measurement, reporting and verification process to quantify methane emissions, and

(d) require the upgrade of all equipment to alternative zero- or low-emission and low-maintenance equipment, such as electric, mechanical, or compressed air equipment.

(2) In this section—

“flaring” means the burning of methane gas and other hydrocarbons produced during oil and gas extraction;

“venting” means the release of methane gas and other hydrocarbons directly into the atmosphere, without combustion.

(3) Regulations under this section must be made so as to come into force by 31 December 2025.”

This new clause would prohibit “flaring” and “venting”.

New clause 13—Introduction of a social tariff for vulnerable energy customers—

“(1) Within six months of the day on which this Act is passed, the Secretary of State must prepare and lay before Parliament a plan to bring forward a social tariff for vulnerable energy customers.

(2) The plan under subsection (1) must set out ways in which the social tariff for energy would satisfy the following conditions—

(a) it is additional to the Warm Home Discount and Default tariff price Cap,

(b) it is mandatory for all licensed electricity and gas suppliers,

(c) it is targeted at households that are in or at risk of fuel poverty,

(d) it is set at a level that is below the market price, and

(e) it automatically enrols eligible households onto the tariff.”

This new clause will require the Secretary of State to bring forward a plan to introduce a social tariff for energy.

New clause 14—Smart meter roll-out for prepayment customers—

“(1) The Secretary of State must ensure that all legacy prepayment meters are replaced with smart meters before the end of 2025.

(2) Within three months of the day on which this Act is passed, the Secretary of State must prepare a plan to end self-disconnections by the end of 2026.

(3) Such a plan may include but is not limited to—

(a) the introduction of a social tariff for prepayment customers,

(b) the introduction of mechanisms to apply credit automatically if a prepayment customer runs out of credit,

(c) the introduction of a mechanism to transfer a prepayment customer to credit mode automatically if they run out of credit.”

This new clause places duties on the Secretary of State to ensure prepayment metered customers are prioritised in the smart meter rollout, and to create a plan to stop self-disconnections before the end of 2026.

New clause 15—Restriction of the use of prepayment meters—

“(1) Within 90 days of the day on which this Act is passed the Secretary of State must make regulations prohibiting energy suppliers from authorising or undertaking the installation of new prepayment meters for domestic energy use unless the condition in subsection (2) is met.

(2) The condition is that the energy supplier has received an explicit request from the consumer for the installation of a prepayment meter.

(3) In this section “installation of new prepayment meters” includes switching existing energy meters to a prepayment mode.

(4) The Secretary of State may make subsequent regulations that amend or repeal regulations made under this section.

(5) Regulations under this section are subject to the affirmative procedure.”

This new clause would require the Secretary of State to prohibit the installation of new prepayment meters unless consumers explicitly request them.

New clause 16—National Warmer Homes and Businesses Action Plan—

“(1) The Secretary of State must, before the end of the period of 6 months beginning with the day on which this Act is passed, publish an action plan entitled the Warmer Homes and Businesses Action Plan, to set out proposals for delivery of—

(a) a low-carbon heat target, of 100% of installations of relevant heating appliances and connections to relevant heat networks by 2035,

(b) an Energy Performance Certificate at band C by 2035 in all UK homes where practical, cost effective and affordable, and

(c) an Energy Performance Certificate at band B by 2028 in all non-domestic properties, and

(d) the Future Homes Standard for all new builds in England by 2025.

(2) The Secretary of State must, in developing the Warmer Homes and Businesses Action Plan, consult the Climate Change Committee and its sub-committee on adaptation.”

This new clause imposes a duty on the Secretary of State to bring forward a plan with time-bound proposals for low carbon heat, energy efficient homes and non-domestic properties and higher standards on new homes.

New clause 17—Plan for vulnerable consumers—

“(1) Within three months of the day on which this Act is passed, the Secretary of State must prepare and lay before Parliament a plan addressing the needs of vulnerable consumers and consumers from low-income households in relation to the cost of energy.

(2) The plan under subsection (1) may include, but is not limited to—

(a) the extension of the energy price cap on heating oil,

(b) the extension of the warm homes discount,

(c) the increase of winter fuel payments,

(d) preventing electricity suppliers from recovering the costs of paying a revenue collection counterparty under the Nuclear Energy (Financing) Act 2022 from customers claiming Universal Credit or other legacy benefits,

(e) requirements for energy suppliers to offer social energy tariffs to households experiencing fuel poverty, and

(f) any other measures the Secretary of State believes are appropriate.”

This new clause would require the Secretary of State to develop a plan to protect vulnerable customers from the rising cost of energy.

New clause 18—Energy performance regulations relating to existing premises—

“(1) Within six months of the day on which this Act is passed, the Secretary of State must make regulations—

(a) to amend the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (S.I. 2015/962) to require that, subject to subsection (2), all tenancies have an Energy Performance Certificate (EPC) of at least Band C by 31 December 2028; and

(b) to amend the Energy Efficiency (Private Rented Property) (England and Wales) (Amendment) Regulations 2019 (S.I. 2019/595) to raise the cost cap to £10,000.

(2) Regulations under subsection (1) must provide for exemptions to apply where—

(a) the occupier of any premises whose permission is needed to carry out works refuses to give such permission;

(b) it is not technically feasible to improve the energy performance of the premises to the level of EPC Band C; or

(c) another exemption specified in the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 has been registered in the Private Rented Sector (PRS) Exemptions Register.

(3) Within six months of the passage of this Act the Secretary of State must make regulations—

(a) to amend the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 to enable local authorities to give notice to landlords that they wish to inspect a property in relation to those Regulations, requesting permissions from landlords and any tenants in situ at the time to carry out an inspection at an agreed time;

(b) to expand the scope of the current PRS Exemptions Register and redesign it as a database covering properties’ compliance with or exemptions from EPCs;

(c) to require a post-improvement EPC to be undertaken to demonstrate compliance;

(d) to require a valid EPC be in place at all times while a property is let; and

(e) to raise the maximum total of financial penalties to be imposed by a local authority on a landlord of a domestic private rented sector property in relation to the same breach and for the same property to £30,000 per property and per breach of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.

(4) The Secretary of State may make regulations—

(a) to enable tenants in the private rented sector to request that energy performance improvements are carried out where a property is in breach of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015; and

(b) to make provision for a compensation mechanism where a tenant is paying higher energy bills as a result of a property not meeting the required standard.

(5) Regulations under this section are subject to the affirmative procedure.”

This new clause seeks to improve the energy efficiency of private rental properties for tenants and gives powers to local authorities to conduct assessments of the energy efficiency of private rental properties and increase financial penalties for breaches of energy efficiency standards.

New clause 19—Decarbonisation of capacity market—

“Within six months of the day on which this Act is passed the Secretary of State must introduce measures to reduce the carbon intensity of power supplied by the capacity market by prioritising—

(a) demand side management,

(b) the supply of renewable energy, and

(c) electricity storage and other non-carbon-based energy storage systems.”

This new clause is a probing amendment to explore the potential of decarbonising the capacity market.

New clause 20—Onshore wind and solar power—

“(1) Within six months of the day on which this Act is passed, the Secretary of State must prepare and lay before Parliament a plan to significantly increase the proportion of the energy supply generated by onshore wind power in the United Kingdom.

(2) The plan under subsection (1) must set out measures which may include but are not limited to—

(a) revising national planning guidance on onshore wind and solar to increase the number of onshore wind and solar installations,

(b) improving infrastructure to ensure access to grid connections for existing onshore wind and solar installations, and

(c) increasing access to grants or subsidies to encourage new onshore wind and solar installations.

(3) The Secretary of State must report annually to Parliament to provide an update on the progress in increasing onshore wind and solar power.”

This new clause would require the Secretary of State to prepare a plan to significantly increase the proportion of the UK energy supply generated by onshore wind and solar power.

New clause 21—Value added tax on energy-saving materials—

“In Schedule 8, Part II, Group 23, note 1 of the Value Added Tax Act 1994 (meaning of “energy-saving materials”), at the end insert—

“(1) batteries used solely for the purpose of storing electricity generated by solar panels.””

This new clause includes batteries used solely to store energy generated by solar panels in the list of energy saving materials subject to a zero VAT rate.

New clause 22—Increasing grid capacity—

“Within three months of the day on which this Act is passed, the Secretary of State must prepare and lay before Parliament a plan to—

(a) reduce access costs and time frames for grid connections,

(b) reform the energy network to permit local energy grids, and

(c) accelerate the development of an offshore wind energy grid in the North Sea.”

This new clause seeks to require the Secretary of State to produce a plan to increase grid capacity.

New clause 23—Impact of insulation in homes on energy bills—

“The Secretary of State must, within six months of the day on which this Act is passed, prepare and lay before Parliament a report setting out—

(a) an assessment of the average cost of energy bills if homes were properly insulated, and

(b) the impact of improving all homes to the highest possible Energy Performance Contract rating on energy bills and greenhouse gas emissions.”

This new clause requires the Secretary of State to carry out an assessment of the average cost of energy bills if homes were insulated (a) properly and (b) to the highest possible Energy Performance Contract rating.

New clause 24—Government support for community energy—

“(1) Within three months of the passage of this Act, the Secretary of State must publish and lay before Parliament a report setting out the financial, policy and other support that the Secretary of State plans to make available to widen the ownership of low carbon and renewable energy schemes and increase the number of such schemes owned, or part owned, by community organisations.

(2) The report must set out—

(a) all policies, programmes or other initiatives with which the Secretary of State plans to support the development and construction of new low carbon community energy schemes;

(b) the level of financial support which will be made available for—

(i) the Rural Community Energy Fund,

(ii) the Urban Renewable Energy Fund, and

(iii) any other fund or support package designed to support the development of new low carbon community energy schemes;

(c) all policies, programmes or other initiatives the Secretary of State intends will increase community ownership of local low carbon energy schemes through shared ownership schemes;

(d) the steps the Secretary of State is taking to develop new market rules to make it easier for low carbon community energy schemes to sell the energy they generate;

(e) the number and the capacity of the new community energy schemes the Secretary of State expects to be constructed as a result of the measures set out in the report.

(3) Not less than twelve months after the publication of the report, and not later than the end of each subsequent period of twelve months, ending five years after the publication of the report, the Secretary of State must lay before Parliament and publish an assessment of the progress made by the policies, programmes and other initiatives set out in the report.

(4) The assessment must set out—

(a) the total amount of financial support provided by the policies in the report;

(b) the number and capacity of low carbon community energy schemes —

(i) completed, and

(ii) in development;

(c) the number and capacity of new shared ownership schemes;

(d) any changes the Secretary of State proposes to make to the policies, programmes and other initiatives included in the original report.”

This new clause would require the Government to report annually for 5 years on the support it is providing to Community Energy schemes and the number and capacity of such schemes that are delivered.

New clause 25—Investment protection agreements and climate change targets—

“Within six months of the day on which this Act is passed, the Secretary of State must—

(a) initiate procedures for the United Kingdom to withdraw from the Energy Charter Treaty;

(b) lay before Parliament a report setting out—

(i) the list of investment protection agreements to which the UK is a party which offer protections to the energy sector, and

(ii) an assessment of the risks they pose to the Secretary of State fulfilling duties in this Act with regard to the achievement of targets set by the Climate Change Act 2008.”

New clause 26—Prohibition on setting domestic energy prices according to region—

“Within six months of the day on which this Act is passed, the Secretary of State must by regulations prohibit energy companies from setting prices for domestic energy supply according to geographical region.”

This new clause would require the Government to bring forward legislation to end the regional pricing of domestic energy bills.

New clause 27—Report on extending price cap for off grid fuels—

“Within three months of the day on which this Act is passed, the Secretary of State must publish and lay before Parliament a report setting out the consequences of extending the price cap for off grid fuels.”

This new clause would require the Secretary of State to publish a report on extending the price cap for off grid fuels.

New clause 28—Prohibition on hydraulic fracturing—

“(1) Associated hydraulic fracturing is prohibited.

(2) “Associated hydraulic fracturing” has the meaning given by section 4B of the Petroleum Act 1998.

(3) The Secretary of State may by regulations make consequential provision in connection with this section.”

This new clause would introduce a permanent ban on fracking.

New clause 29—Prohibition of new oil and gas field developments and issuing of exploration and production licences—

“Within six months of the day on which this Act is passed, the Secretary of State must by regulations prohibit—

(a) the approval of new oil and gas field developments, and

(b) the release of new oil and gas exploration and production licences.”

This new clause would prohibit the approval of new oil and gas field developments and the issuing of new oil and gas exploration and production licenses.

New clause 30—Duty to phase down UK petroleum—

“(1) Within six months of the day on which this Act is passed, the Secretary of State must make regulations to amend section 9A of the Petroleum Act 1998.

(2) Regulations under subsection (1) must—

(a) remove the “principal objective” of maximising the economic recovery of UK petroleum;

(b) define a new “principal objective”.

(3) The new “principal objective” referred to in paragraph (2)(b) must provide for—

(a) delivery of a managed and orderly phase down of UK petroleum;

(b) advancement of the UK’s climate change commitments, including—

(i) the target for 2050 set out in section 1 of the Climate Change Act 2008, and

(ii) the commitment given by the Government of the United Kingdom in the Glasgow Climate Pact to pursue policies to limit global warming to 1.5 degrees Celsius;

(c) facilitation of a just transition for oil and gas workers and communities.

(4) Before making regulations under subsection (1) the Secretary of State must hold a public consultation which must include consultation with—

(a) the devolved administrations,

(b) relevant trade union and worker representatives,

(c) oil and gas workers and communities,

(d) relevant representatives from academia,

(e) relevant climate and environmental organisations and representatives,

(f) relevant industry representatives of petroleum and renewable energy businesses supporting the transition away from fossil fuels, and

(g) offshore energy training bodies.

(5) Relevant climate and environmental organisations and representatives under subsection (4(e)) must include the Climate Change Committee.”

This new clause would amend the Petroleum Act 1998 to remove the principal objective of maximising the economic recovery of UK petroleum and replace it with a new principal objective to deliver a managed and orderly phase down of UK petroleum, advance the UK’s climate targets, and support a just transition for oil and gas workers.

New clause 31—Requiring installation of solar panels on all new homes—

“(1) Within six months of the day on which this Act is passed, the Secretary of State must by regulations require—

(a) the installation of solar panels on the roofs of all new homes; and

(b) that new housing developments are planned in order to maximise solar gain.

(2) Regulations under subsection (1) may provide for exemptions in cases where the installation of solar panels on the roof of a new home is not appropriate.”

This new clause would mandate the installation of solar panels on the roofs of all new homes and require new housing developments to be planned in order to maximise solar gain.

New clause 32—Capacity market—

“(1) The Secretary of State must exercise the power in section 27 of the Energy Act 2013 to ensure that the capacity adequacy procured through the capacity market has a rising share of zero carbon flexible and dispatchable power that is consistent with achieving a zero carbon power system by 2035.

(2) The Secretary of State must ensure that all new multi-year capacity market contracts awarded to unabated fossil fuel capacity market units should have a contract end date no later than 31 December 2034.

(3) In exercising functions under this section, the Secretary of State must have regard to the desirability of maintaining security of supply.

(4) Draft regulations under subsection (1) must be laid before Parliament within six months of the day on which this Act is passed.”

This new clause probes the potential of decarbonising the capacity market.

New clause 33—Energy Demand Reduction Delivery Plan—

“(1) The Secretary of State must, within 12 months of the day on which this Act is passed, prepare and publish an Energy Demand Reduction Delivery Plan.

(2) In preparing the Energy Demand Reduction Delivery Plan under subsection (1), the Secretary of State must consult the Climate Change Committee.

(3) The Energy Demand Reduction Delivery Plan under subsection (1) must include but is not limited to—

(a) a quantitative assessment on the role of energy demand reduction in meeting the United Kingdom's carbon budgets and the 2050 net zero target;

(b) energy demand reduction targets for—

(i) aviation

(ii) surface transport,

(iii) shipping,

(iv) manufacturing and construction,

(v) buildings, and

(vi) agriculture,

in line with the UK’s carbon budgets and the 2050 net zero target; and

(4) an assessment of the role in achieving those targets of—

(a) energy efficiency improvements and technologies, and

(b) avoiding unnecessary energy use through infrastructure and behaviour change

(5) The Climate Change Committee must evaluate, monitor and report annually on the implementation of the Energy Demand Reduction Delivery Plan.”

This new clause would introduce a requirement to produce an Energy Demand Reduction Delivery Plan quantifying sectoral energy demand reduction targets and assessing how these can be achieved, and to review progress towards achieving them.

New clause 34—Production of sustainable aviation fuel—

“(1) The Secretary of State may by regulations introduce a price stability mechanism to incentivise the production of sustainable aviation fuel in the United Kingdom.

(2) A draft of regulations made under subsection (1) must be laid before Parliament within twelve months of the passage of this Act.

(3) A Minister must make a motion in each House of Parliament to approve the regulations laid before Parliament under subsection (2) within fifteen sitting days of the date on which they were laid.

(4) If both Houses of Parliament approve the regulations, they must be made in the form in which they were laid before Parliament.

(5) If either House of Parliament does not approve the regulations, the Secretary of State must lay a revised draft of the regulations before Parliament, and subsections (3) to (5) of this section apply to those regulations as they do to regulations laid under subsection (2).

(6) For the purposes of this section—

“price stability mechanism” is a mechanism under which a producer may enter into a private law contract with a Government-backed counterparty for the purposes of receiving a guaranteed price for a product or service;

“sitting day” is—

(a) in the case of the House of Commons, a day on which the House of Commons sits;

(b) in the case of the House of Lords, a day on which the House of Lords sits.”

New clause 35—Energy decarbonisation for homes: local authority funding—

“(1) The Secretary of State must, within six months of the date on which this Act is passed, carry out and publish an assessment of the benefits of providing long-term predictable funding to local authorities for the purpose of energy decarbonisation for homes in their local authority area.

(2) The assessment under subsection (1) must include an assessment of the likely impact of decarbonisation funding on—

(a) energy demand,

(b) fuel poverty, and

(c) installations of low-carbon heating systems.”

New clause 36—Introduction of a National Energy Guarantee—

“(1) Within six months of the date on which this Act is passed, the Secretary of State must prepare and lay before Parliament a plan to replace the existing energy price guarantee with a National Energy Guarantee in the form of a rising block tariff including a free or low-cost energy allowance to cover essential needs.

(2) When preparing the plan under subsection (1) the Secretary of State must consult independent bodies working on fuel poverty before determining the pricing of the allowance and the threshold above which the higher tariff should apply.

(3) Once the plan under subsection (1) has been laid before Parliament, the Secretary of State may by notice in writing require the regulator to introduce a rising block tariff, provided it satisfies the following conditions—

(a) that an allocation of energy set at no less than 50% of a defined minimum essential level is provided free of charge to all households;

(b) that the tariff incentivises energy-saving measures, particularly among higher income households;

(c) that households not connected to a mains gas supply will be given an increased electricity allowance, such that they are not disadvantaged;

(d) that the tariff is accompanied by additional allowances for disabled people and others who require high levels of energy usage to fulfil their essential needs; and

(e) that the tariff does not undermine the ability of energy suppliers to offer innovative tariffs through higher energy bands.”

This new clause would introduce a National Energy Guarantee in the form of a rising block tariff: an allowance for low-cost energy to cover essential needs, with a premium tariff to incentivise energy saving measures in households with high energy use, and additional allowances for those with unavoidably high energy needs.

New clause 37—Industrial lithium-ion battery storage facilities—

“(1) Within 12 months of the date on which this Act is passed, the Secretary of State must make regulations about the building of industrial lithium-ion battery storage facilities.

(2) Regulations under subsection (1) must include—

(a) a requirement for a relevant environmental permit to be issued by the Environment Agency, and

(b) a requirement for the relevant fire authority to be a statutory consultee in all planning applications for such facilities.”

This new clause would require the Secretary of State to make regulations for the building of industrial lithium-ion storage facilities which must include requiring an Environmental Permit from the Environment Agency and for the Fire Authority to be a statutory consultee in planning applications.

New clause 39—Duties of the Gas and Electricity Markets Authority in respect of off-grid fuels—

“(1) Within three months of the passage of this Act, the Secretary of State must by regulation extend the duties of the Gas and Electricity Markets Authority to the distribution and supply of fuels utilised for off-grid home heating.

(2) Regulations under subsection (1) must provide for GEMA to apply a cap on the price of fuel supplied for off-grid home heating proportionate to the cap applied in respect of on-grid homes.”

This new clause seeks to extend the duty of Ofgem to regulate off-grid fuels utilised for off-grid home heating and to ensure that a cap is applied for off-grid home fuels that is proportionate to the cap applied for on-grid homes.

New clause 40—Renewable liquid fuels for low-carbon heating—

“Within six months of the passage of this Act, the Secretary of State must by regulation introduce a Renewable Liquid Heating Fuel Obligation, setting annual obligations on fuel suppliers to ensure the supply of recognised low-carbon renewable liquid fuels for domestic and commercial heating.”

This new clause would require the Government to introduce a Renewable Liquid Heating Fuel Obligation for home and commercial building heating purposes, which would create a scheme that mirrors the Renewable Transport Fuel Obligations Order 2007. This would offer the option to off-gas-grid properties to switch to renewable liquid fuels.

New clause 41—Duty to ensure the lowest possible cost of energy to businesses and households—

“In exercising any function under or in connection with this Act, it is the duty of the Secretary of State to ensure the lowest possible cost of energy to businesses and households.”

This new clause is designed to be placed as Clause 1 of the Bill and would give the Secretary of State the duty to exercise functions under the Act which will result from the Bill in a way which would ensure the lowest possible costs of energy to businesses and households.

New clause 42—Restriction on energy company obligations—

“(1) In section 33BC of the Gas Act 1986 (promotion of reductions in carbon emissions: gas transporters and gas suppliers), after subsection (1) insert—

“(1ZA)) An order under subsection (1) may not impose an obligation on a gas transporter or gas supplier with fewer than 1,000 employees.”

(2) In section 33BD of the Gas Act 1986 (promotion of reductions in home-heating costs: gas transporters and gas suppliers), after subsection (1) insert—

“(1A)) An order under subsection (1) may not impose an obligation on a gas transporter or gas supplier with fewer than 1,000 employees.”

(3) In section 41A of the Electricity Act 1989 (promotion of reductions in carbon emissions: electricity distributors and electricity suppliers), after subsection (1) insert—

“(1ZA)) An order under subsection (1) may not impose an obligation on an electricity distributor or electricity supplier with fewer than 1,000 employees.”

(4) In section 41B of the Electricity Act 1989 (promotion of reductions in home-heating costs: electricity distributors and electricity suppliers), after subsection (1) insert—

“(1A)) An order under subsection (1) may not impose an obligation on an electricity distributor or electricity supplier with fewer than 1,000 employees.””

This new clause would restrict the Energy Company Obligation, which places an obligation on energy suppliers to install energy efficiency and heating measures, to large companies (those with over 1000 employees).

New clause 43—Planning applications for onshore wind energy developments—

“(1) Within three months of the date on which the Act is passed, the Secretary of State must—

(a) remove from the National Planning Policy Framework the restrictions placed by footnote 54 on the circumstances in which proposed wind energy developments involving one or more turbines should be considered acceptable, and

(b) publish guidance for wind developers on how they can engage communities, demonstrate local consent to local planning authorities, and provide financial benefits to local residents.

(2) Section 78 of the Town and Country Planning Act 1990 is amended by the insertion, after subsection (3), of the following new subsection—

“(3A) An appeal under this section may not be brought or continued against the refusal of an application for planning permission if the development is for the purposes of installing new onshore wind sites not previously used for generating wind energy.””

This new clause aims to remove the current planning restriction that a single objection to an onshore wind development is sufficient to block the development, to ensure that local communities willing to take onshore wind developments will receive some community benefit, and to provide that local decisions made on onshore wind cannot be overturned on appeal.

New clause 44—Independent review of the generation of bioenergy with carbon capture and storage—

“(1) The Secretary of State must commission an independent review of the generation of bioenergy with carbon capture and storage (BECCS).

(2) The review must report on the potential impact of BECCS on—

(a) household energy bills,

(b) lifecycle carbon emissions in the generation of energy,

(c) biodiversity,

(d) land use, and

(e) any other matter the Secretary of State considers appropriate.

(3) The Secretary of State must lay before Parliament—

(a) the report of the review, and

(b) the Government’s response to the review.

(4) No subsidy may be given for BECCS until the report of the review and the Government’s response have been laid before Parliament in accordance with subsection (3).

(5) Subsection (4) does not apply if an agreement for the giving of subsidy was concluded before the passage of this Act.

(6) For the purposes of this section—

“bioenergy” means energy from biomass;

“biomass” has the meaning given by paragraph 3 of the Renewables Obligation Order 2015 (SI 2015/1947);

“subsidy” has the meaning given by section 2 of the Subsidy Control Act 2022.”

This new clause would prohibit new government subsidies for generating bioenergy with carbon capture and storage (BECCS) until the Secretary of State commissions and publishes an independent review of BECCS to establish its impact on household energy bills, lifecycle carbon emissions, biodiversity and land use, and the Government’s response.

New clause 45—Modelling of the UK’s energy needs—

“(1) The Secretary of State must commission—

(a) a report on the most energy efficient, most economic and least carbon-intensive means to fulfil the UK’s current energy needs, and

(b) a report on comprehensive future energy modelling for the UK on the most energy efficient, most economic and least carbon-intensive means to meet the UK’s future energy needs.

(2) The Secretary of State must lay before Parliament the reports required under subsection (1) within six months of the day on which this section comes into force.”

This new clause would require the Secretary of State to commission and publish reports on the most energy efficient, most economic and least carbon-intensive means of satisfying the UK’s energy needs.

New clause 46—Review of Contract for Difference strike prices—

“(1) Within three months of the passage of this Act, the Secretary of State must undertake a review of Contract for Difference strike prices, and make a report to Parliament on the review.

(2) The review must—

(a) include an assessment of the viability of existing projects that have already been allocated,

(b) include an assessment of the UK-based supply chain for each project awarded Contracts for Difference, and

(c) re-evaluate the parameters for—

(i) the allocation for round five of Contracts for Difference funding, and

(ii) future allocation rounds.”

This new clause requires the Secretary of State to assess the viability of projects that have been awarded Contracts for Difference, and to undertake a review of the existing parameters for Contracts for Difference allocation.

New clause 47—Nationally significant infrastructure projects and forced labour—

“(1) Within six months of the day on which this Act is passed, the Secretary of State must by regulations provide that existing and new applicants for nationally significant infrastructure projects (within the meaning given by sections 14 and 15 of the Planning Act 2008) of over 50mw must demonstrate that their goods were not manufactured in, or produced with materials using forced labour.

(2) Regulations under subsection (1) must require all existing and new NSIP energy applicants to submit a report to the Planning Inspectorate to demonstrate clear and convincing evidence that the goods, or materials in the goods, were not mined, produced, or manufactured wholly or in part by forced labour.

(3) Within six months of the day on which this Act is passed the Foreign, Commonwealth and Development Office must create and publish a guide on interpreting reports for the Planning Inspectorate to consult when determining whether goods, or materials in the goods, were mined, produced, or manufactured wholly or in part by forced labour.

(4) Regulations under subsection (1) must provide that any nationally significant infrastructure project of over 50mw unable to demonstrate beyond reasonable doubt that its goods, or materials in the goods, were not mined, produced, or manufactured wholly or in part by forced labour must be recommended for rejection by the Planning Inspectorate upon the submission of the Inspection to the Secretary of State for Energy Security and Net Zero.

(5) Regulations under subsection (1) must provide for any company found to be circumnavigating the requirements of the regulations through third parties, subcontractors or third countries to be permanently barred from operating in the United Kingdom.”

This new clause will require the developers of new NSIP energy projects to demonstrate that their projects do not use, benefit from, or contribute to the forced labour.

New clause 48—Development of solar energy plants on agricultural land—

“(1) The Secretary of State must by regulations prevent the development of solar energy projects on sites of over 500 acres where over 20% of the land is Best and Most Versatile agricultural land.

(2) For the purposes of this section “Best and Most Versatile agricultural land” means land classed as grade 1, grade 2 or subgrade 3a under the agricultural land classification published by Natural England.

(3) Regulations under subsection (1) must—

(a) include provision for the prevention of the development of solar energy projects for which permission has already been sought, but not granted, and

(b) apply both to applications determined by local planning authorities and to those determined by the Planning Inspectorate.

(4) Regulations under subsection (1) may amend primary legislation.

(5) Within six months of the day on which this Act is passed, the Secretary of State must publish plans and incentives for the development of solar energy on rooftops, commercial and residential sites, and brownfield sites composed of ungraded land.”

This new clause would end the development of large-scale solar plants on BMV land and require the Secretary of State to publish plans to incentivise the building of solar on rooftops and brownfield sites.

New clause 49—Electricity Storage Capacity—

“(1) Within six months of the day on which this Act is passed the Secretary of State must lay before Parliament a strategy for an increase in the provision of electricity storage facilities to enhance the resilience and flexibility of electricity supply and ensure fair pricing for electricity users.

(2) The strategy referred to in subsection (1) must cover all forms of electricity storage, including—

(a) battery,

(b) hydrogen,

(c) ammonia,

(d) adiabatic compressed air energy storage systems, and

(e) hydroelectric storage.

(3) The strategy referred to in subsection (1) must address considerations relating to—

(a) licensing,

(b) planning,

(c) regulation,

(d) subsidy, and

(e) taxation.

(4) The strategy referred to in subsection (1) must set out—

(a) proposed pricing mechanisms for stored electricity, and

(b) provisions ensuring consumers pay a fair price for electricity.”

This new clause seeks to ensure the UK Government sets out a report to Parliament that demonstrates how it plans to meet the increased storage capacity that will be required with a future electricity network that is heavily reliant on renewable sources.

New clause 50—Renewable Liquid Heating Fuel Obligation—

“(1) Within twelve months of the date of Royal Assent to this Act, the Secretary of State must carry out a consultation on a renewable liquid heating fuel obligation.

(2) For the purposes of subsection (1) a renewable liquid heating fuel obligation means requiring fuel suppliers to meet annual targets to ensure the supply of recognised low-carbon renewable liquid fuels for domestic and commercial heating.

(3) For the purposes of the consultation under subsection (1) the Secretary of State must consult such persons as the Secretary of State considers appropriate.

(4) Within three months of the conclusion of the consultation under subsection (1) the Secretary of State must lay before Parliament a report of the consultation.

(5) Following publication of the report under subsection (4) the Secretary of State may by regulations set out a scheme requiring fuel suppliers to meet annual targets to ensure the supply of recognised low-carbon renewable liquid fuels for domestic and commercial heating.

(6) Regulations under subsection (5) may provide for—

(a) a scheme for the imposition of low-carbon renewable liquid fuel obligations on fuel suppliers;

(b) the appointment of an Administrator to run the scheme;

(c) matters in relation to the functions of the Administrator;

(d) the method by which amounts of low-carbon renewable liquid fuel are to be counted or determined for the purposes of provision made by or under the regulations;

(e) the Administrator to issue certificates to suppliers setting out the amounts of low-carbon renewable liquid fuel supplied, the time period in which they were supplied and other relevant facts;

(f) a supplier which does not wholly discharge its low-carbon renewable liquid fuel obligation for a given period to pay the Administrator a specified sum within a specified period, and further provision for connected purposes;

(g) the imposition of civil penalties, and objections to and appeals against civil penalties;

(h) the disclosure of relevant information by relevant persons; and

(i) such other provision as the Secretary of State considers appropriate.”

This new clause would require the Secretary of State to consult on a scheme for renewable liquid heating fuel obligations for home and commercial building heating purposes, and to publish a report on the consultation. The new clause would further allow the Secretary of State make regulations to set up a scheme for renewable liquid heating fuel obligations for home and commercial building heating purposes.

New clause 51—Tidal Range power—

(1) Within three months of the day on which this Act is passed, the Secretary of State must establish a Tidal Range Assessment Grant for the purposes of funding an independent evidence-led review of the potential contribution to be made by tidal range energy generation to the future energy generating capacity of the United Kingdom.

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

(a) pre-feasibility assessments of proposed tidal range projects and their potential both individually and together to contribute to the future energy generating capacity of the United Kingdom;

(b) whole life-cycle analysis and financial modelling to identify the optimum framework for the financing of tidal range projects as ultra-long lifecycle infrastructure assets, including an assessment of the potential merits of a Regulated Asset Base funding model for tidal range projects;

(c) a whole energy market analysis to establish and quantify the potential contribution of tidal range power to the decarbonisation of the United Kingdom’s energy system with particular reference to the value of predictable, flexible energy generation near centres of increasing demand and the potential of operational tidal range projects to bypass major grid barrier issues and enable a stable, operable, and secure decarbonised energy grid;

(d) an assessment of the current and planned innovations in sectors related to the development of operational tidal range projects, including in the broader supply chain, digital twins, power handling and distribution, and energy storage, and how these can be used to drive a reduction in cost and maximise the contribution of materials and components produced in the United Kingdom to tidal range projects;

(e) environmental baseline research and monitoring programmes of the proposed locations of selected tidal range projects for the purposes of establishing an enhanced understanding of the possible impacts on biodiversity and local ecosystems of operational tidal range projects; and

(f) whole-system analysis to evaluate other potential benefits of operational tidal range projects, such as coastal and flooding protection, the stimulation of related industries, and contributions to local economies.”

New clause 53—Community and Smaller-scale Electricity Supplier Services Scheme—

“(1) Within six months of the passage of this Act, the Secretary of State must by regulations require licensed energy suppliers with more than 150,000 customers (“eligible licensed suppliers”) to offer a Community and Smaller-scale Electricity Supplier Service agreement to any Community or Smaller-scale Energy site registered under section [Community and Smaller-scale Electricity Export Guarantee Scheme (No. 2)] for the purposes of allowing that site to sell electricity to local consumers.

(2) A Community and Smaller-scale Electricity Supplier Service agreement is an agreement which requires licensed suppliers to make a community or smaller-scale energy tariff available to consumers local to the exporting site that has regard to the export price paid or that would be paid to that site under section [Community and Smaller-scale Electricity Export Guarantee Scheme (No. 2)].

(3) The eligible licensed supplier may limit the total number of consumers the community or smaller-scale energy tariff is available to such that the total annual energy under the tariff is broadly equivalent to the total annual energy generated by the site.

(4) The eligible licensed supplier is the registrant for the meters of any local consumer purchasing energy under the community or smaller-scale energy tariff.

(5) The eligible licensed supplier may charge a reasonable fee for the provision of services under this section provided that it has regard to distribution, licensing and regulatory costs and any guidance provided by GEMA.

(6) The eligible licensed supplier must return any money raised through the sale of energy under a tariff set up under this section to the Community or Smaller-scale Energy site, save for the fee allowed under subsection (5).

(7) Eligible licensed suppliers must report annually to GEMA on—

(a) the number and capacity of community energy groups or smaller-scale sites offered Community and Smaller-scale Electricity Supplier Service agreements and the number who have contracted to use them,

(b) the total amount of electricity purchased under these agreements, and

(c) the tariffs for each agreement.

(8) GEMA must—

(a) produce guidance on the level of community or smaller-scale energy tariffs and on the reasonable charges that eligible suppliers may charge for Community and Smaller-scale Electricity Supplier Service agreements,

(b) make and publish a report annually on the operation of the export purchase agreements, setting out—

(i) the number of community energy projects or smaller-scale sites contracted with licensed energy suppliers under this section and the total amount of electricity purchased,

(ii) the licensed suppliers contracting with community energy groups or smaller-scale sites and the amount of electricity each has purchased,

(iii) an assessment of how the mechanism is performing and the contribution it is making to delivering secure and low carbon electricity supplies, and

(iv) recommendations for how Community and Smaller-scale Electricity Supplier Service agreements could be improved.

(9) Regulations under this section are subject to the affirmative procedure.”

New clause 56—Delinking of renewable and gas prices in the retail market—

“(1) Within six months of the passage of this Act the Secretary of State must publish a plan to ensure the delinking of gas and renewable and low carbon energy prices as they appear in the retail market.

(2) The plan may take into account—

(a) the establishment of a “green pool” for the direct sale of renewable and low carbon power into the retail market;

(b) the incorporation of low carbon and renewable power plants not possessing a Contract for Difference into Contract for Difference arrangements suitable for inclusion in a green power pool after it is established.”

This new clause requires the Secretary of State to produce a plan to end the linkage between renewable and low carbon energy and gas prices at retail level which results in most renewable power being priced in the retail market as if it were gas.

New clause 57—Onshore wind—

“(1) The Secretary of State must by regulations ensure that onshore wind installations are treated for the purpose of planning and development as local infrastructure and will be permitted or otherwise as if they were.

(2) Regulations under subsection (1) may amend any primary legislation passed before the passage of this Act.”

This new clause ensures that onshore wind development proposals in England and Wales are permitted to proceed on the same basis as other local infrastructure projects.

New clause 58—Community and Smaller-scale Electricity Export Guarantee Scheme (No. 2)—

“(1) Within six months of the passage of this Act, the Secretary of State must by regulations require licensed energy suppliers with more than 150,000 customers (“eligible licensed suppliers”) to purchase electricity exports from sites, including those operated by community groups, which generate low carbon electricity with a capacity below 5MW.

(2) The requirement imposed by regulations under subsection (1) is to be known as the Community and Smaller-scale Electricity Export Guarantee Scheme.

(3) Fossil fuelled local power plants with a capacity of less than 5MW are not eligible for participation in the Community and Smaller-scale Electricity Export Guarantee Scheme, with the exception of a local combined heat and power plant that generates electricity ancillary to its purpose of providing heat for local heat networks.

(4) “Fossil fuel” has the meaning given in section 104(4).

(5) Licensed energy suppliers with fewer than 150,000 customers may also purchase electricity exports from the sites specified in subsection (1) provided that they do so on the terms set out by the regulations.

(6) The regulations must require that eligible licensed suppliers—

(a) offer to the sites specified in subsection (1) a minimum export price set annually by the Gas and Electricity Markets Authority (“GEMA”),

(b) offer to those sites a minimum contract period of five years, and

(c) allow the exporting site to end the contract after no more than one year.

(7) Within six months of the passage of this Act, GEMA must—

(a) set an annual minimum export price for those sites that has regard to current wholesale energy prices and inflation in energy prices and the wider economy,

(b) introduce a registration system for exporting sites meeting the requirements set out in subsection (1) and wanting to access these export purchases,

(c) define specifications for the smart export meters required by such sites,

(d) define “low carbon electricity” in such a way that it includes renewable generation technology and may include other technology with extremely low carbon dioxide emissions,

(e) define requirements for an exporting site generating low carbon electricity with a capacity of less than 5MW to be registered as a Community or Smaller-scale Energy site, and maintain a register of such sites.

(8) Regulations under subsection (1) must provide that to access export purchase agreements exporters must—

(a) register their site with GEMA,

(b) install a smart export meter that meets specifications defined by GEMA, and

(c) notify GEMA if they are a community group.

(9) All licensed suppliers providing purchase agreements for sites specified in subsection (1) must report annually to GEMA—

(a) the number and capacity of Community or Smaller-scale Energy sites that have been offered contracts to purchase electricity and the number of such sites which agreed those contracts,

(b) the total amount of electricity purchased under those agreements, and

(c) the price paid for that electricity.

(10) OFGEM must make and publish a report annually on the operation of the export purchase agreements, setting out—

(a) the number of Community or Smaller scale Energy sites contracted with licensed energy suppliers under this section and the total amount of electricity purchased,

(b) the licensed suppliers contracting with Community or Smaller-scale Energy sites and the amount of electricity each has purchased,

(c) an assessment of how the mechanism is performing and the contribution it is making to delivering secure and low carbon electricity supplies, and

(d) recommendations on how the mechanism could be improved.

(11) Regulations under this section are subject to the affirmative procedure.”

New clause 59—Decarbonised electricity supply by 2030—

“(1) It is the duty of the Secretary of State to ensure that the supply of electricity in the UK is decarbonised by 2030.

(2) The Secretary of State must, within six months of the passage of this Act, produce and publish a plan which will set out how the duty in subsection (1) is to be achieved.”

This new clause is intended to provide for the UK’s electricity supply to be decarbonised by 2030.

New clause 60—Planning consent for new electricity pylons—

“(1) Within six months of the passage of this Act, the Secretary of State must by regulations provide for a fast-track planning process for electricity pylons along motorways and rail lines.

(2) Regulations under this section may amend primary legislation.”

New clause 61—National Warmer Homes and Businesses Action Plan (No. 2)—

“(1) The Secretary of State must, before the end of the period of 6 months beginning with the day on which this Act is passed, publish an action plan entitled the Warmer Homes and Businesses Action Plan, to set out proposals for delivery of—

(a) an Energy Performance Certificate at band C by 2035 in all UK homes where practical, cost effective and affordable, and

(b) an Energy Performance Certificate at band B by 2030 in all privately rented non-domestic properties, and

(c) the Future Homes Standard for all new builds in England by 2025.

(2) The Secretary of State must, in developing the Warmer Homes and Businesses Action Plan, consult the Climate Change Committee and its sub-committee on adaptation.”

New clause 62—Energy performance regulations relating to existing premises (No. 2)—

“(1) Within six months of the day on which this Act is passed, the Secretary of State must make regulations—

(a) amending the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (S.I. 2015/962) to require that, subject to subsection (2), all tenancies have an Energy Performance Certificate (EPC) of at least Band C by 31 December 2028; and

(b) amending the Energy Efficiency (Private Rented Property) (England and Wales) (Amendment) Regulations 2019 (S.I. 2019/595) to raise the cost cap to £10,000.

(2) Regulations under subsection (1) must provide for exemptions to apply where—

(a) the occupier of any premises whose permission is needed to carry out works refuses to give such permission;

(b) it is not technically feasible to improve the energy performance of the premises to the level of EPC Band C; or

(c) another exemption specified in the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 has been registered in the Private Rented Sector (PRS) Exemptions Register.

(3) Within six months of the passage of this Act the Secretary of State must make regulations—

(a) amending the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 to enable local authorities to give notice to landlords that they wish to inspect a property in relation to those Regulations, requesting permissions from landlords and any tenants in situ at the time to carry out an inspection at an agreed time;

(b) expanding the scope of the current PRS Exemptions Register and redesigning it as a database covering properties’ compliance with or exemptions from EPCs;

(c) requiring a post-improvement EPC to be undertaken to demonstrate compliance;

(d) requiring a valid EPC to be in place at all times while a property is let; and

(e) raising the maximum total of financial penalties to be imposed by a local authority on a landlord of a domestic private rented sector property in relation to the same breach and for the same property to £30,000 per property and per breach of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.

(4) Regulations under this section are subject to the affirmative procedure.”

New clause 67—Local supply rights—

“(1) Within six months of the day on which this Act is passed, the Secretary of State must publish a report on and consult on the introduction of local supply rights for community energy schemes, which would enable these schemes to sell their power to local customers.

(2) The report must set out—

(a) the potential benefits of community energy,

(b) the estimated additional costs to consumer bills that would be incurred in order for community energy schemes to account for 10% of energy generation by 2033, and

(c) an estimate of typical cost/benefit ratios for local communities and consumers.”

This new clause seeks to require the Government to publish a consultation on the introduction of local supply rights for community energy schemes within 6 months of the Act being passed.

New clause 68—Reports on the functioning of the energy price support framework—

“Within six months of the day on which this Act is passed, the Secretary of State must prepare and lay before Parliament reports assessing—

(a) the potential benefits of a social tariff would have on levels of fuel poverty across the UK,

(b) the adequacy of the current system for individuals who have higher energy needs due to a medical condition, and

(c) the potential benefits of a strategy that rewards households who use less energy by guaranteeing them a lower price through a tiered electricity plan.”

This new clause will require the Secretary of State to report on the functioning of the current framework as it relates to certain groups.

Government amendment 180.

Amendment 3, in clause 2, page 3, line 30, at end insert

“issued by the economic regulator or other competent authority”.

This amendment allows persons with a CO2 storage licence from the North Sea Transition Authority to operate a geological storage site for CO2 disposal, as per current legislation in the Energy Act 2010.

Amendment 4, page 3, line 34, leave out “a service” and insert

“a monopoly service to multiple users”.

This amendment would exclude from the requirement to have an economic licence, all forms of transportation where competitive markets are more likely to develop than monopolies e.g. shipping, rail or road. It would also enable investment in private spur connections to the regulated CO2 network.

Government amendments 131, 198, 181, 132, 199 to 209, 144 to 147, 139 and 140.

Amendment 175, in clause 65, page 58, line 13, leave out

“in the opinion of the Secretary of State”.

This amendment would remove the role of the Secretary of State in determining who qualifies as a “low carbon hydrogen producer.”

Government amendments 141 and 142.

Amendment 9, page 60, line 22, leave out clause 69.

This amendment, together with Amendments 10 to 12, would leave out the clauses of the Bill which provide for a hydrogen levy.

Amendment 10, page 61, line 1, leave out clause 70.

See explanatory statement to Amendment 9.

Amendment 170, in clause 70, page 61, line 2, leave out

“relevant market participants (see subsection (8))” and insert “the Secretary of State”.

This amendment, together with Amendments 171 to174, is intended to provide that the Secretary of State, rather than relevant market participants, should fund the hydrogen levy administrator.

Amendment 171, page 61, line 19, leave out “relevant market participants” and insert “the Secretary of State”.

See explanatory statement to Amendment 170.

Amendment 172, page 61, line 34, leave out “relevant market participants” and insert “the Secretary of State”.

See explanatory statement to Amendment 170.

Amendment 173, page 61, line 37, leave out subsection (5).

See explanatory statement to Amendment 170.

Government amendment 148.

Amendment 174, page 62, line 9, leave out subsection (9).

See explanatory statement to Amendment 170.

Amendment 11, page 62, line 12, leave out clause 71.

See explanatory statement to Amendment 9.

Amendment 12, page 63, line 11, leave out clause 72.

See explanatory statement to Amendment 9.

Amendment 13, in clause 73, page 64, line 22, leave out paragraph (a).

This amendment is consequential on Amendments 9 to 12.

Amendment 14, page 64, line 26, leave out “each paragraph of”.

This amendment is consequential on Amendments 9 to 12.

Amendment 15, page 64, line 27, leave out “under that paragraph”.

This amendment is consequential on Amendments 9 to 12.

Government amendment 121.

Amendment 16, page 65, line 6, leave out paragraph (a).

This amendment is consequential on Amendments 9 to 12.

Amendment 17, page 65, line 10, leave out

“a hydrogen production revenue support contract or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 18, page 65, line 15, leave out

“a hydrogen production allocation body or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 19, in clause 74, page 65, line 22, leave out paragraph (a).

This amendment is consequential on Amendments 9 to 12.

Amendment 20, page 65, line 31, leave out

“hydrogen production revenue support contract or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 21, in clause 75, page 65, line 35, leave out subsection (1).

This amendment is consequential on Amendments 9 to 12.

Amendment 6, page 66, line 2, after “that” insert “eligible”.

This amendment clarifies that the low carbon hydrogen producer must be eligible to receive support, which other amendments ensure means that they are compliant with the Low Carbon Hydrogen Standard.

Amendment 22, page 66, line 10, leave out “(1) or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 23, in clause 76, page 66, line 23, leave out paragraph (a).

This amendment is consequential on Amendments 9 to 12.

Amendment 24, page 66, line 30, leave out

“hydrogen production revenue support contracts or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 25, page 66, line 33, leave out

“hydrogen production revenue support contracts or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 26, page 67, line 10, leave out

“hydrogen production revenue support contracts or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 27, page 67, line 15, leave out “for producing hydrogen or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 28, page 67, line 17, leave out

“(whether in respect of hydrogen production or capture of carbon dioxide)”.

This amendment is consequential on Amendments 9 to 12.

Government amendment 143.

Amendment 29, in clause 77, page 67, line 40, leave out subsection (1).

This amendment is consequential on Amendments 9 to 12.

Amendment 30, page 68, line 19, leave out “hydrogen production counterparty or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 31, page 68, line 24, leave out paragraph (c) and insert—

“(c) how the eligible carbon capture entity to whom the offer is made may enter into a carbon capture revenue support contract as a result of the offer;”.

This amendment is consequential on Amendments 9 to 12.

Amendment 32, page 68, line 28, leave out

“eligible low carbon hydrogen producer or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 33, in clause 78, page 68, line 36, leave out

“an eligible low carbon hydrogen producer, or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 34, page 68, line 39, leave out

“hydrogen production counterparty or (as the case requires)”.

This amendment is consequential on Amendments 9 to 12.

Amendment 35, page 69, line 1, leave out “hydrogen production counterparty or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 36, page 69, line 16, leave out “hydrogen production counterparty or”.

This amendment is consequential on Amendments 9 to 12.

Amendment 37, page 69, line 35, leave out clause 80.

This amendment is consequential on Amendments 9 to 12.

Amendment 38, in clause 81, page 70, line 33, leave out

“hydrogen transport counterparty, hydrogen storage counterparty, hydrogen production counterparty”.

This amendment is consequential on Amendments 9 to 12.

Amendment 39, in clause 82, page 71, line 1, leave out paragraph (a).

This amendment is consequential on Amendments 9 to 12.

Amendment 40, in clause 83, page 71, line 32, leave out sub-paragraph (i).

This amendment is consequential on Amendments 9 to 12.

Amendment 41, page 71, line 40, leave out paragraph (e).

This amendment is consequential on Amendments 9 to 12.

Government amendment 149.

Amendment 42, page 72, line 9, leave out

“hydrogen production revenue support contract or”.

This amendment is consequential on Amendments 9 to 12.

Government amendments 150 to 152.

Amendment 43, in clause 84, page 73, line 7, leave out subsections (3) and (4).

This amendment is consequential on Amendments 9 to 12.

Government amendments 210 to 213.

Amendment 44, in clause 86, page 74, line 9, leave out paragraphs (b) and (c).

This amendment is consequential on Amendments 9 to 12.

Amendment 45, page 74, line 22, leave out paragraphs (b) and (c).

This amendment is consequential on Amendments 9 to 12.

Amendment 46, age 74, line 28, leave out “a hydrogen levy administrator”.

This amendment is consequential on Amendments 9 to 12.

Amendment 47, in clause 88, page 77, line 2, leave out paragraph (b).

This amendment is consequential on Amendments 9 to 12.

Government amendments 153 to 162.

Amendment 48, page 78, line 37, leave out clause 90.

This amendment is consequential on Amendments 9 to 12.

Government amendment 163.

Amendment 49, in clause 91, page 79, line 36, leave out paragraph (b).

This amendment is consequential on Amendments 9 to 12.

Government amendments 164, 70, 165, 122 to 124 and 214 to 216.

Amendment 7, in clause 128, page 115, line 6, after “transportation” insert

“by pipeline, ship or other means,”.

Carbon dioxide transport by ship is almost certain to be a part of the Scottish Cluster and subsequent phases of other CCUS clusters and this amendment makes explicit that transportation by ship or other means would be included in the financial assistance available under clause 103.

Government amendments 125 to 129, 71, 72, 133 and 134.

Amendment 8, in clause 142, page 127, line 2, leave out from “heat” to the end of line 18 and insert “from a renewable source.”

This amendment would enable the Secretary of State to make provision for the establishment of a low-carbon heat scheme which encouraged the use of heating appliances that generate heat from a renewable source but which might previously have burnt a fossil fuel.

Government amendments 217 and 218.

Amendment 50, in clause 152, page 133, line 30, at end insert

“, except that that power is not exercisable without a warrant issued by a justice of the peace.”

This amendment would require a warrant for the exercise of the power to enter premises in a hydrogen grid conversion trial.

Amendment 130, page 136, line 3, leave out clause 155.

This amendment would remove clause 155 and therefore ensure that fusion energy facilities are still required to secure a nuclear site licence.

Amendment 1, in clause 159, page 137, line 31, at end insert—

“(1A) The person designated under subsection (1) must be a public body with no other roles or interests in the energy sector.”

This amendment ensures that the ISOP is a public body, not an individual or a private company, and has no conflicting interests.

Amendment 51, in clause 160, page 138, line 9, at beginning insert—

“(A1) The ISOP must carry out its functions in the way that it considers is best calculated to ensure the lowest possible cost of energy to businesses and households.”

This amendment, together with Amendment 52, would introduce a new primary objective for the Independent System Operator and Planner (ISOP), to which the existing objectives for the ISOP in the Bill would become secondary.

Amendment 52, page 138, line 9, at beginning insert “Subject to subsection (A1),”.

See explanatory statement to Amendment 51.

Government amendments 73 to 76.

Amendment 2, in clause 162, page 140, line 5, leave out subsection (1) and insert—

“(1) The ISOP must have regard to the strategic priorities set out in the current strategy and policy statement but will otherwise carry out its functions independently of the Secretary of the State.”

This amendment ensures that the Independent System Operator and Planner (ISOP) is independent.

Government amendments 166 and 77 to 79.

Amendment 53, page 178, line 25, leave out clause 212.

This amendment would remove the clause granting the Secretary of State an extension of time for the extension of powers relating to smart meters.

Government amendments 103 and 219 to 224.

Amendment 54, in clause 227, page 188, line 31, leave out paragraph (c).

This amendment would ensure that it was not possible to impose a penalty on a person for not complying with a request for information relating to a heat network zone.

Amendment 55, in clause 228, page 189, line 9, leave out subsections (2) to (10) and insert—

“(2) Regulations made by virtue of subsection (1) may not impose a requirement on any person.”

This amendment would prevent regulations about heat networks within heat network zones from imposing mandatory requirements.

Amendment 56, page 192, line 30, leave out clause 230.

This amendment would leave out the clause which provides for the enforcement of heat network zone requirements.

Amendment 57, page 193, line 12, leave out clause 231.

This amendment would leave out the clause which provides for penalties to be imposed by regulations about heat network zones.

Amendment 58, page 196, line 3, leave out clause 235.

This amendment, together with Amendments 59 to 63, would remove Chapter 2 of Part 9 of the Bill, on energy smart appliances.

Amendment 59, page 197, line 13, leave out clause 236.

See explanatory statement to Amendment 58.

Amendment 60, page 198, line 4, leave out clause 237.

See explanatory statement to Amendment 58.

Amendment 61, page 199, line 39, leave out clause 238.

See explanatory statement to Amendment 58.

Amendment 62, page 200, line 22, leave out clause 239.

See explanatory statement to Amendment 58.

Amendment 63, page 201, line 14, leave out clause 240.

See explanatory statement to Amendment 58.

Amendment 64, page 205, line 14, leave out clause 246.

This amendment, together with Amendments 65 to 67, would leave out Part 10 of the Bill, on the energy performance of premises.

Government amendments 182 to 184.

Amendment 65, page 206, line 29, leave out clause 247.

See explanatory statement to Amendment 64.

Amendment 66, page 207, line 1, leave out clause 248.

See explanatory statement to Amendment 64. This amendment would remove a clause which would enable the creation of criminal offences by regulations.

Government amendment 185.

Amendment 67, page 208, line 6, leave out clause 249.

See explanatory statement to Amendment 64. This amendment would remove a clause which would enable the amendment, repeal or revocation of primary legislation by regulations.

Government amendments 186 to 193.

Amendment 68, page 214, line 1, leave out clause 255.

This amendment would leave out the clause which provides for requirements to be imposed by energy savings opportunity scheme regulations.

Amendment 69, page 216, line 16, leave out clause 257.

This amendment would leave out the clause which provides for the enforcement of energy savings opportunity scheme regulations and the creation of connected penalties and offences.

Government amendments 225 to 229, 80, 81, 230 to 238, 82, 194, 239, 195, 240, 241, 83, 242, 84 to 94, 243, 176, 177, 196, 178, 244, 104 to 110, 169, 179, 111 to 120, 95 to 100, 197, 101, 135 to 138, 167, 168 and 102.

[Andrew Bowie]

I am delighted to rise today to bring before the House our landmark Energy Bill for its consideration. This world-leading, historic Bill—a Conservative Bill—will deliver for this country cleaner, cheaper and more secure energy. It will level up this country, while contributing to levelling down bills for the British people. It will unleash new technology, liberate private investment in clean technologies, modernise and future-proof our energy network, and deliver for this country and for future generations.

The United Kingdom already has a great story to tell on reducing our carbon emissions. We have reduced our emissions faster than any other G7 nation. We were the first European nation to legislate for net zero. We have the first oil and gas basin dedicated to going net zero and the first, second, third and fourth-largest offshore wind farms in the world operating and generating power off the coast of Great Britain right now. We have eliminated our reliance on coal. We have grown to more than 40% of energy being generated by renewables. We have announced further investment in carbon capture, usage and storage, and we are pressing ahead with Great British Nuclear, which I launched two months ago with an exciting programme for small modular reactors. We are on track to deliver 24 GW of nuclear power on the grid by 2025.