Energy Prices Bill

Lord Berkeley Excerpts

3rd reading
Tuesday 25th October 2022 Lords Chamber

[The Lord Privy Seal (Lord True) (Con)]

My Lords, I have it in command from His Majesty the King to acquaint the House that His Majesty, having been informed of the purport of the Energy Prices Bill, has consented to place his interest, so far as it is affected by the Bill, at the disposal of Parliament for the purposes of the Bill.

[Lord Berkeley (Lab)]

My Lords, in respect of the King’s consent being signified, can the Leader of the House say exactly what that consent comprises? We have this in many Bills—I believe they are all sent to the palace, and the Duchy of Cornwall sometimes, for approval or comment. There is no transparency, so we do not actually know why the consent is needed here and whether it is for their private or their public interest. Is it to help them with electricity bills this winter in their many palaces, which might be private or public or both? Or is it because the Crown Estate—since a proportion of the income from it goes to the sovereign, and it is doing very well with offshore wind—is going to get an extra cut? Some transparency on this at the start of a new reign would be very welcome and interesting, so perhaps the Leader of the House can give me a little more explanation.

[Lord True (Con)]

My Lords, it is a long custom in this House that we are extremely restrained in what we discuss which touches on the potential attitudes of the sovereign and the Royal Family. However, this is marginally tangential, and since the noble Lord was kind enough to give notice that he was going to rise at this point—and if I may humbly say so, it is a good courtesy of your Lordships’ House to give notice, and a good way of getting a response—I will on this occasion give an answer, because I hope it gives an example of the carefulness with which these matters are considered.

I can explain that consent was requested in relation to Clauses 16 and 19. Counsel had advised that Clause 16 may impact the interests of the Crown, as it confers a power on the Secretary of State to require certain electricity generators to make payment to a payment administrator, by reference to the amount of electricity they generate in a particular period. Implementation of these powers could, in principle, capture a generating station that the King or Duchy might own or have an interest in, and thereby could require payments by the King in relation to the generation of electricity at that generating station in a period.

Counsel also advised that Clause 19 is capable of impacting the interests of the Crown. The Crown Estate, Duchy or the King, through his personal property, may be required by regulations under Clause 19 to pass on energy price support that they receive—for example, in respect of gas or electricity supplied to premises of which they are landlords—to end-users, including tenants to whom they supply heating, cooling or hot water produced using energy in respect of which price support has been received. Those tenants might acquire a cause of action against the Crown in the event that such support is not passed on. Regulations under Clause 19 may also impose on the Crown requirements relating to the provision of information.

I hope that we do not have to go through this process on each occasion and that your Lordships will understand that this is a consent which the Crown makes to put its interests at the disposal of your Lordships. I also hope that that detailed response, which the noble Lord, Lord Berkeley, asked for, will assure your Lordships as we go forward that extremely careful consideration is given to these matters.