Lord Jenkin of Roding
Main Page: Lord Jenkin of Roding (Conservative - Life peer)Energy Bill [HL]
Lord Jenkin of Roding Excerpts
Baroness Northover
This is a minor and technical amendment to ensure consistency of statutory reporting to Parliament under the Energy Act 2004 and the Bill with public expenditure rules. The amendment to ensure consistency will apply both to the special administration regime for electricity transmission and distribution companies and gas transporters created by the Energy Act 2004, and to the provisions for a special administration regime for energy supply companies under the provisions in this Bill. I beg to move.
Lord Jenkin of Roding
My Lords, I of course accept the amendment that the Government have moved, but I return to the issue that I raised in Grand Committee about the uncertainty created by the third of the three tests of whether a company can be put into administration, which is that the company is likely to be unable to pay its debts. Under the original Act, that was a decision to be taken by the company. Under this Bill, it is a decision that will be taken by the Secretary of State. Despite what my noble friend said in reply to that debate in Grand Committee, it seems to me that this still leaves a substantial area of uncertainty for the industry. My noble friend said at the time that there would be consultation with the company and its directors. What I would like to suggest and, indeed, if we were going to reach this clause next Tuesday—we have made such haste this afternoon and evening that in a sense I have been a little bit caught short—I would have tabled an amendment to say that it should be done only with the consent of the company. That would make the case. I wonder whether my noble friend can say something about this now or whether this is a point I could raise again at Third Reading.
Baroness Northover
I thank my noble friend for that comment. I think the best way to take this forward is by consultation. If he would like to discuss the details with officials, we could see what, if anything, needs to be addressed.