Electricity and Gas etc. (Amendment) (EU Exit) Regulations 2020

Lord Fox Excerpts

Thursday 3rd September 2020 Grand Committee

[Lord Fox (LD)]

My Lords, I congratulate the previous speakers on their speeches and the Minister on his comprehensive description, particularly of the tidying-up part of this statutory instrument. He was less forthcoming —indeed, less fulsome—on the Northern Ireland part, which was probably reflected by the previous speakers. I will not repeat their questions but I will repeat the eloquent point made by my noble friend Lord Oates.

Far from taking back control, energy consumers, including electricity consumers, in the Northern Ireland part of the island of Ireland are ceding control of their market to a foreign power in which they have no representation at all. If the Government indeed sought to take back power, they have not only failed but failed hugely in this regard—and this is just one of the many things we will see. We will see further statutory instruments that extract Northern Ireland from the United Kingdom and create a separate part of the United Kingdom internal market. Clearly, there will be two parts of the United Kingdom internal market—a very serious issue when you think about the union and the integrity of the United Kingdom. We should be under no illusions that although the Minister spoke little about this matter, it is extremely serious and disappointing.

We get little chance to talk about electricity. I know that the Minister is always keen to tell us about BEIS’s plans and the future of electricity strategy. Bearing in mind the thoroughness of my colleagues, who asked most of the questions required of this statutory instrument, I will add a few. I understand that the Minister may not be thoroughly prepared to answer them; I would be happy to receive a letter if he is prepared to write one in response.

The purpose of this statutory instrument is to deliver an orderly market, but of course there is no market if we do not have sufficient supply and adequate and efficient transmission of that supply across the country. I have a couple of questions specifically on those points. First, on the 2030 target for the growth in offshore wind energy, the offshore wind sector deal settled on 30 gigawatts by 2030. The Minister’s party’s manifesto talks of 40 gigawatts by 2030 and, as I understand it, plans are afoot in the industry to deliver 30 gigawatts, not 40. Perhaps the Minister can say which of these plans is actually the target for 2030 and communicate to the rest of the industry that it is indeed the plan. As the Minister knows, the climate change committee said that there should be 70 gigawatts by 2050. We need to know what the critical path to getting to that total is.

On transmission, it is clear that to deliver green, carbon-free energy across the country there needs to be significant change to the transmission grid across the United Kingdom. As it happens, tomorrow is the closing date for Ofgem’s response deadline for its five-year price control plans. As I understand it—I am informed by members of the industry—the industry is saying that if the current nature of the Ofgem pricing plan remains, investment in the grid over the next five years will be reduced by 40%; I am not sure whether the Minister picked that up. For those 30 extra gigawatts of energy in 2030 to be transmitted across the country, we do not need less investment in the national grid—we need more.

So, what is the Minister’s response to the Ofgem consultation, which takes very literally its economic and efficiency responsibilities to mean the lowest possible price now? The Minister knows that paying a low price now can mean paying a high price a lot later. We do not want to be playing catch-up with the grid in five years’ time to deliver the energy we so desperately need to meet our climate change requirements. Can the Minister undertake to answer these questions, because this statutory instrument will be entirely theoretical if we do not have the energy we need in the places we need it and on time?