Energy Bill [Lords]

Debate between Nickie Aiken and Andrew Bowie

Report stage
Tuesday 5th September 2023 Commons Chamber

[Andrew Bowie]

I thank my hon. Friend for his contribution. As we have spoken about before, I understand his position on the levy. It is our belief that in ensuring that the levy is placed higher up the chain, the sectors that will benefit most from the early development of hydrogen will bear the brunt of the cost, not the wider British public. That is the aim and intention of what we seek to achieve.

As I was saying, the Bill will not introduce the levy on to shippers; instead, it will enable the Government to introduce the levy through secondary legislation. I am sure we will continue to have this debate in the months and years ahead.

I turn to Government new clause 63, amendment 8 and new clauses 40 and 50 on renewable liquid heating fuel. I thank my right hon. Friend the Member for Camborne and Redruth (George Eustice) for his work and amendments relating to renewable liquid fuels for low-carbon heating. His constructive work with the Government has been incredibly helpful and positive. I also pay tribute to my hon. Friend the Member for Bury St Edmunds (Jo Churchill), who has been championing the use of renewable liquid fuels for low-carbon heating for many years.

As the recent biomass strategy made clear, such fuels will have a critical role to play in decarbonising our economy. We recognise that they have the potential to play an important role in decarbonising heat, especially as not all off-grid properties will be suitable for electrification. We will explore the potential of these fuels for heat by issuing a consultation within 12 months. We want to take the powers now to support the use of these fuels in heat in the future, should they be needed. That is why we tabled Government new clause 63, taking powers to impose obligations on heating fuel suppliers to increase the supply of renewable liquid heating fuels.

[Nickie Aiken (Cities of London and Westminster) (Con)]

In my constituency we have a particular issue with commercial and domestic use, because residents are often in the same building as commercial properties. It would be helpful for the Minister to look at the definition of heat network systems, so that Ofgem can understand what systems qualify as heat networks in domestic properties, which are a real issue in my constituency.

[Andrew Bowie]

The measures in the Bill will provide the Government with powers to implement heat network zoning in England. Those include powers to develop a nationwide methodology for identifying and designating areas as heat network zones, and to establish a new zoning co-ordinator role—which we generally expect will be filled by local government, though my hon. Friend is free to apply—with responsibility for designating areas as heat network zones and enforcing requirements in them. They also include powers requiring heat networks developed in zones to meet a low-carbon requirement, and to ensure that certain buildings and heat sources connect to a heat network in a zone within a specific timeframe. The relevant Minister in the Department and I will be happy to meet my hon. Friend to discuss how that will be relevant to her urban constituency as we move forward and seek to implement these proposals.