Energy Prices (Domestic Supply) (Northern Ireland) Regulations 2022

Lord Teverson Excerpts

Wednesday 16th November 2022 Grand Committee

[Lord McCrea of Magherafelt and Cookstown (DUP)]

My Lords, I want to reiterate the point raised by my noble friend Lord Browne, that a vast proportion of Northern Ireland is reliant on heating oil and not on gas or electricity for heating their homes. That is the case especially in rural Northern Ireland, which is a vast area. Many of our elderly certainly rely on it, as do those who are disabled. The payment towards heating oil—I think £100 was mentioned—is totally useless and verging on an insult to those in such need, especially as they face the winter.

As the Committee knows, domestic consumers are very concerned about the £400 payment. I trust that the Minister will be able to answer this. The previous Prime Minister confirmed that the £400 energy bills discount would be paid to householders in November and backdated to October. I believe that the Chancellor has also reaffirmed that it will be received by families before Christmas. I heard one Minister say today that you cannot believe everything you read in the papers, when she was speaking about the names of possible Peers in a couple of years’ time. There is talk that the payment may not now arrive until January. Could we have some clarification on this? Certainly, two Prime Ministers and past Chancellors and Secretaries of State have confirmed that the payment would be made in November and at the latest before Christmas. Could we have confirmation of that, as it is concerning a lot of people?

[Lord Teverson (LD)]

My Lords, I thank the noble Lord, Lord Browne, for explaining the details of the Northern Ireland energy market. I did not realise that it was quite so complicated, as it sometimes is here with multiple suppliers, and so on.

I want to make two points. The first has already been covered by noble Lords—the predominance of oil provision in Northern Ireland and how that is dealt with. Despite the strong competition, I suspect that the £100 is far from enough in being able to compensate those rural households for their energy costs.

Secondly, as the Minister will be well aware, there is a single electricity market in Northern Ireland. The grids are integrated. As noble Lords have said, it is separate from the British system. Are there any potential issues in relation to differential charging either side of the border? There may be no issues—

[Baroness Hoey (Non-Afl)]

The noble Lord said that it was different from the “British system”. I think he means the Great Britain system. Northern Ireland is part of the United Kingdom; we are British.

--- Later in debate ---

[Lord Teverson (LD)]

I absolutely agree with the noble Baroness. There were no implications at all. I was trying not to say “the United Kingdom”, because the system is different from that in Great Britain. I thank her for that.

I think that I have made my point. I am interested to understand whether there is any issue between the two sides of the border in terms of what is a single market.

[Lord Lennie (Lab)]

My Lords, I thank the Minister for bringing the regulations before us and the noble Lords, Lord Browne, Lord McCrea and Lord Teverson, for their comments and questions. I thank the noble Lord, Lord Browne, in particular for clarifying the depth and strength of the market in Northern Ireland. I was going to say that the regulations were not contentious, but there is a bit of contention and, no doubt, the Minister will deal with that.

The instrument defines the terms “NI domestic electricity supply” and “NI domestic gas supply” to scope the extent of premises that will be eligible. Specifically, this is to include some non-domestic premises which due to their similar metering and tariff arrangements would receive EPG support. Given there is no way for energy suppliers to disaggregate, it is difficult to disagree with this. I would be keen to hear from the Minister the scope of this impact, both in terms of the number of non-domestic premises and any additional costs incurred.

The Explanatory Notes use places of worship as an example, as did the Minister, but what other types of non-domestic premises are included? Perhaps we could turn to the experts from Northern Ireland to help us with this.

I would like to raise an issue that was brought up in the other place during the debate on this instrument on Monday. There is a scheme document linked to this instrument, headed “Establishment of domestic electricity price reduction scheme for Northern Ireland”, which in Schedule 5 states that the Government will require suppliers of electricity to hand all meter data to the Government for the purposes of regulating and discussing the domestic supply scheme.

This data will encompass many things; it will be held by the Government for 10 years and can be shared with other departments, law enforcement agencies, regulatory bodies and others. While it is not pertinent to today’s instrument, this is the same for rest of the United Kingdom in the respective document. This appears to be a breach of the data access and privacy framework which was produced when smart meters were first rolled out. It states that smart meter data is the property of the customer and can be disclosed to third parties, including the Government, only with their consent. I understand the Minister in the other place committed to write to Dr Alan Whitehead MP on this issue and I would appreciate it if the Minister could ensure that I receive the same response.