Energy Bill [HL]

Lord Teverson Excerpts

Consideration of Commons amendments
Tuesday 12th September 2023 Lords Chamber

[Lord Teverson (LD)]

My Lords, first, I congratulate the Minister—he knows that I like to praise his work—particularly on the change in the Ofgem amendment, in that our major regulator will now have a net-zero objective. To me, that is absolutely stark staringly obvious, and the fact that there has been government resistance to it while the Bill has been in this House I find strange, so that is a real move forward. The other thing that is to me stark staringly stupid is that we are talking about opening a coal mine in 2023. That makes no sense at all, and I will go through the reasons why.

It is not just we on these Benches or the Opposition who have that view. Let me quote from the Commons at Report. The then Energy Minister, Chris Skidmore—highly respected in this area and highly respected by the Government, in that he wrote their independent net zero review—said:

“Legislating to prevent the opening of new coal mines simply maintains the commitment that the UK sought to make to the rest of the world at COP26”—[Official Report, Commons, 5/9/23; col. 303.]


That was Chris Skidmore, former Energy Minister, valued by the Government for his net zero review, and by all of us for that great piece of work.

At COP 26 in Glasgow a couple of years ago, which we chaired very successfully under Sir Alok Sharma, we nailed our colours to the mast and led a coalition of countries—I think the government press release says 190—and celebrated the fact that we would phase out coal. What motivates me most to put Amendment 272A forward again is that our international reputation is being shredded by the fact that we are moving ahead on this basis. Let us not pretend that it is not noticed internationally, because it is. Even the White House, under John Kerry, the climate envoy, has remarked on this piece of government policy planning and Michael Gove’s proposal to open the coal mine. So, our international reputation for climate leadership, which all of us on all sides of this House have been particularly proud of over the years, is being literally trashed by this decision.

That has other effects as well. During a Private Notice Question yesterday, we debated the fact that we had no investor take for offshore wind on the CfD pitch when it concluded last week. That shows that we need rock-solid commitment to net zero in order to attract investment into this country. To me, our saying internationally that we are starting to open coal mines absolutely goes against what we are saying to bring in investment. It questions UK government policy, which is competing with the Inflation Reduction Act in the United States and a green deal industrial plan in the EU. We are trying to get a slice of that global investment, yet our environmental and climate focus is wobbling. That is absolutely wrong.

This amendment would apply to any sort of coal mine, but the Minister mentioned the Cumbrian coal mine, which is what that decision is all about. Let us be clear about that proposition and the company West Cumbria Mining. As the noble Baroness, Lady Bennett, has said already, that industry is moving—indeed, must move—competitively towards a much greener stance; for the UK steel industry to remain competitive, it must do so as well. As I understand it, scientists have questions about West Cumbrian coal, including whether its sulphur content is even sufficient for the steel industry. However, the main facts are these: first, the steel industry generally is not that interested in that coal; and, secondly, the company itself says that some four-fifths of the coal will not be used by the UK steel industry, which means that it needs to be exported. Once coal is exported, we have no control over how that substance is used.

That brings me to transport. The argument is that it is better to provide our own coking coal than to import it. However, if we export 80% of this coal, that will put transport costs up because we will have the cost of transporting it to other, international markets.

The one argument that I do have sympathy with concerns jobs. We all know that the region of Cumbria is hugely challenged in terms of levelling up, jobs and income. However, it is completely obvious to me that, as the noble Baroness, Lady Blake, just talked about with regard to Labour’s amendment, we have the ability to provide green jobs and proper energy efficiency. It is clear to me that this coal mine will not be there for a particularly long time, so those jobs will be transient.

I will leave it at that but let me come back to the United Kingdom’s international reputation and our important share in global investment in the green sector. I quote the Government’s own website, which said this after COP 26:

“The end of coal—the single biggest contributor to climate change—is in sight thanks to the UK securing a 190-strong coalition of countries and organisations at COP26”.


That was a proud moment for not just Alok Sharma but the Government. It is being trashed.

[Baroness Boycott (CB)]

My Lords, I rise to speak to Amendment 274B in my name. I draw attention to my interests in the register.

I will speak briefly about community energy but let me just say that I absolutely support the amendments in the names of the noble Baroness, Lady Blake, and the noble Lord, Lord Teverson. I also very much support the noble Lord’s words, especially about what this measure is going to do to Britain’s reputation, and his reminding us of where this country was just a couple of short years ago as the leaders of COP, playing a proud role on the world stage; that seems to be in tatters right now.

Community energy is wildly popular in the country—it is extremely popular with all sorts of people. I find it puzzling why the Government are not bending over backwards to make this easier and simpler for people. I do not want to get into the arguments about onshore wind, but surely one way to mitigate communities’ concerns about renewable energy is to give people a stake in it so that it is about not just a bit of money but owning something. My sister has lived on a small island in Denmark for 60 years. The people there are completely energy independent. It was the first place I knew of that had wind farms everywhere. Everyone knows how much electricity is coming in and what it is doing. They have ownership and share prices—that is just the way it has been done, and it is kind of brilliant. Why can we not say, “The local energy we produce off that hill heats my towel rail all year round”? They can report, “I co-own it”, “It has paid to put solar panels on the roof of the community hall”, or “It has paid for energy efficiency advice and deals for the other homes in our village”.

In fairness to the Government, they have acknowledged this, but we seem to have spent an incredible amount of time hand-wringing about the difficulties rather than finding the easy, appropriate ways of supporting it. All that the sector wants is a deal comparable with all the other renewable energy that we have in this country, via a guaranteed minimum price. This gives communities the certainty that they need to raise the funds to go ahead. This is true across so much of the alternative energy sector.

I supported the establishment of the £10 million community energy fund but, quite honestly, that is not very much. If you look in the Evening Standard, you find that you can buy a flat for £10 million within about 100 yards of here. It is not going to go far enough. We need real reform, so the commitment made by Andrew Bowie in the other place

“to consulting on the barriers the sector faces when developing projects”—[Official Report, Commons, 5/9/23; col. 281.]

was particularly welcome.

That is why I have come up with this compromise amendment, which I hope that the Minister feels able to accept. It would give the industry a boost to know that there was something coming down the tracks on an agreed timeframe. A problem that we have seen before is consultations which do not receive a response—or do but with serious delays. That is all that I am trying to avoid with this amendment in lieu, which sets a generous timescale of 18 months for a consultation and a further six months for bringing forward proposals to remove the barriers to community energy schemes. This times nicely with the end of the two-year community energy fund and would avoid a potential cliff edge.

I believe that the Minister will appreciate the need for clarity for the sector and the need to reassure over 300 MPs, including 147 Conservative MPs, who backed the original Local Electricity Bill, which recognised the barriers to community energy and proposed remedies. I therefore ask him to give this house more clarity on timescales, or I may be required to test the opinion of the House.

--- Later in debate ---

Moved by

[Lord Teverson]

Leave out “agree” and insert “disagree”.

[Lord Teverson (LD)]

My Lords, for the reputation of the UK internationally and for the health of the planet, I wish to test the opinion of the House on this amendment.