Contracts for Difference (Electricity Supplier Obligations) (Amendment) (Coronavirus) Regulations 2020

Lord Foulkes of Cumnock Excerpts

Thursday 2nd July 2020 Lords Chamber

[Lord Foulkes of Cumnock (Lab Co-op) [V]]

My Lords, I thank the Minister most sincerely for his very helpful and comprehensive introduction, which enables me to be briefer than I had intended. I thank him also for his courtesy in asking us all in advance whether we had any questions.

I should say first, as a Scottish Peer, that I am very proud of the progress that we in Scotland have made with renewable energy electricity generation. Indeed, it is now reported that an equivalent of 90% of Scotland’s electricity consumption comes from renewable sources, representing an increase of 14% year on year. Despite some policy uncertainty over recent years, which has limited deployment, our 100% target for renewable power generation in 2020 looks as if it remains on track. I am sure that the Minister will agree that success with renewables, including solar, onshore and offshore wind, and tidal and thermal energy, will all be critical in demonstrating that we in the United Kingdom have shown leadership when we come to COP 26, which we look forward to hosting in Glasgow next year.

I have a couple of questions for the Minister. The explanatory statement to the instrument notes that there is opportunity for these regulations to be used in “similar exceptional circumstances” without the need for further secondary legislation or debate. Can the Minister inform the House what “similar exceptional circumstances” would look like in the future? In this event, would the Government commit to providing further loans to support the Low Carbon Contract Company?

Finally, since these regulations are temporary, my main question is how the Government will reassess these payments in a year’s time. With the current uncertainty in the market, the composition of the players involved may have altered in a year’s time, so I would find it really helpful if the Minister would tell us and help us to understand how they will secure future payments and whether this will mean redistributing them among new market formations. I look forward to hearing the Minister’s answer to these two questions in his reply to this debate.