Energy Bill [HL]

Lord Grantchester Excerpts

Tuesday 10th May 2016 Lords Chamber

Moved by

[Lord Grantchester]

Leave out from “House” to end and insert “do insist on its Amendment 7TB”.

[Lord Grantchester (Lab)]

My Lords, today, once again your Lordships’ House returns to the Energy Bill.

It is deeply disappointing that the Government are unable to agree an entirely fair, minor adjustment to the grace period concessions that have had to be woven into the Bill following the opportunistic inclusion of the decision on the early closure of the renewables obligation.

I, too, will not repeat all the arguments used two weeks ago when your Lordships’ House agreed to ask the Government in the Commons to reconsider. By bringing this measure back again, the Government have hardly won the argument on the issue. Yes, the Conservatives won the election and had included in their manifesto a commitment not to undertake new subsidies for onshore wind. However that may be interpreted, it cannot really mean that voters—especially the little over a third of the electorate who voted Conservative at the last election—thought that they were voting for disruptive, arbitrary decisions regarding schemes with local backing that were nearing implementation. That the Government understood that there had to be a grace period with reasonable conditions to allow an orderly process to scheme completion must at least be recognised and congratulated. That a line must be drawn in these circumstances is saying the obvious. However, it behoves the Government to be equitable, consistent, logical and proportionate with where the line is drawn.

To allow through schemes where they meet approved development conditions, where they can demonstrate financing arrangements were disrupted due to legislative uncertainty, and where there were unforeseen grid or radar problems—all this can be applauded. However, where a scheme has only a three-month delay due to a Section 75/106 agreement and is being ruled out, while another was initially denied planning approval but subsequently won on appeal after the cut-off date, we must draw this to the attention of the House and ask the Government to reconsider their unfair, illogical concessions.

The concession promoted by this amendment was the very minimum, limited case put to your Lordships’ House and supported. Many other cases promoted by the noble and learned Lord, Lord Wallace, and my noble friend Lord Foulkes are well worth considering. But this amendment whittles the merits of all those cases down to this obvious anomaly. Limiting these few schemes caught by how the Government have drawn their line down to four seems highly reasonable and a fair compromise. By turning this down, the Conservative Government are following an ideological belligerence against onshore wind farms that enjoy local support and offer value for money, while simultaneously defending generous handouts to fund more expensive alternatives.

Your Lordships’ House has returned this Bill twice to the Commons for reconsideration. We now have to recognise the constitutional position we are in, with two days to Prorogation. The Minister has given a clear view that the Government are emphatic, even if that view was won by only a small majority in the Commons. This side of the House recognises that the House has looked carefully at the Bill and proposed common-sense amendments to the Government. Naturally, we are disappointed that the Government continue with their disagreement.

Before I finish, I should reflect that on this minor point we are contesting wider issues to which this gives rise. This Energy Bill is concerned primarily with setting up the Oil and Gas Authority. That the Government are willing to hold up, and even put at risk, support for our struggling North Sea industries underlines the extent to which they are prepared to go to block these few popular schemes from going ahead. Blocking projects with local support that have done everything correctly regarding planning consents before an arbitrary cut-off date shows how ideological the Government now are. As has been said and underlined, the litany of actions taken by the Government is generating uncertainty and putting up household energy bills, such that the House of Commons departmental Energy Committee conducted an inquiry into investor confidence in the energy sector, highlighting that policy inconsistencies and contradictory approaches have sent mixed messages to the investment community. Today is another example of the Government claiming to want to decarbonise at lowest cost while simultaneously halting onshore wind.

A study by the Royal Academy of Engineering reported that replacing a single onshore wind turbine with offshore wind power would cost UK taxpayers an extra £300,000 a year in subsidies. The Institute for Public Policy Research, among others, has warned that ruling out onshore wind—the cheapest energy option—could put up energy bills by millions of pounds. Today, Ernst & Young published the Renewable Energy Country Attractiveness Index, showing that the UK has slipped to an all-time low of 13th place among the 40 most attractive renewable energy markets globally, primarily due to the Government’s decision to opt for gas and nuclear rather than be technology-neutral. This approach goes against the grain of almost universal global support for renewables and obstructs a growing energy imperative, as ageing power plants are retired, given the UK’s strong natural resources and efficient and effective capital markets.

Today the Government may get their way but tomorrow the UK will start paying the price. I beg to move.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

As the noble and learned Lord knows, those provisions were not there when the Bill was introduced. They were introduced subsequently, after consultation with industry. I accept that they were not subsequently altered but there was consultation, as he will recall, about what was fair on the grace periods. I think many people recognise that these amendments from the original position were fairer and more just. That is the position. They were not amended subsequently—he is quite right on that.

We have been round the circuit on this so many times that I will not delay the House any further. The view of the other place is clear. We do not want to hold up this legislation with its vital Oil and Gas Authority provisions. I beg to move the original Motion.

[Lord Grantchester]

I am very grateful to noble Lords who have responded on my behalf to the Government’s stance regarding the position we are now in, and to the Minister for the way he has replied. I may well have been injudicious in the words I used regarding the Minister’s motives. However, I am disappointed that I still find his remarks less than convincing. I am not entirely satisfied with his response and I am not happy with the lack of movement towards a compromise.

This issue will not go away. It goes beyond the few cases in the amendment. It concerns the lack of inclusion and the ability of the wind industry to take part in the future bidding rounds for contracts for difference. There is a concern that the Government are not being technology-neutral. It also concerns jobs and investment in Scotland. We remain as determined as ever that we will return to this, but we accept where we are now with the Government—they are not listening and they will not concede. Indeed, it could well be the end of the parliamentary road. Reluctantly, I beg leave to withdraw the Motion.

Some Lords objected to the request for leave to withdraw the Motion, so it was not granted.