Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020

Lord Redesdale Excerpts

Thursday 10th September 2020 Lords Chamber

[Lord Redesdale (LD)]

My Lords, I plan to be brief at this point on a Thursday night because electricity markets are often seen as dry and boring. Considering the recent moves on Northern Ireland, it seems the Government are moving headlong to a no deal. This was counted as an outside possibility until now. If it does happen—and the legislation is preparing for it—the tariffs on electricity will go back to World Trade Organization, I believe. Can the Minister say which body will be responsible for the management of those tariffs and how they will be charged? With the French and Dutch interconnectors, we are looking at between 6% and 10% of our base load capacity coming from France especially, with the nuclear power stations there. Is it going to be National Grid, will it be Elexon? It does not seem clear in the Government’s memorandum, which gives the impression it is business as usual. Can the Minister say what calculations have taken place? Who calculates the tariff? Can the Minister give an indication of what the tariff will be? Obviously, he will have that information to hand. I see the Minister laughs, but I do not see why considering we are talking about only a few months ago and it is integral to the price of electricity in the country. Consumers will have to bear the burden of this tariff. Why has that not been worked out and understood? Surely, BEIS has undertaken that work.

Second, looking at the paperwork and working with some of the organisations, such as Elexon, it appears that most of the forward planning on electricity marketplaces is based on business as usual and that we will just slot in quite happily with the European marketplace. Under a tariff system, I am not sure that is feasible because there will be a price differential between member states and the UK. Therefore, we will not be able to take part in these organisations. Will the Minister give an indication of the future in a no deal situation for such initiatives as project air, which is looking at an integrated European marketplace?