Great British Energy Bill (Third sitting)

Pippa Heylings Excerpts

Committee stage
Thursday 10th October 2024 Public Bill Committees

[The Chair]

Good morning. I have some reminders for the Committee. Please set your electronic devices to silent. No food or drink is permitted during sittings, apart from the water provided, still or fizzy. Hansard colleagues will be grateful if Members could email their speaking notes, or alternatively pass their paper notes to the Hansard colleague in the room, to my left.

We now begin line-by-line consideration of the Bill. The selection list for today’s sittings is available in the room and shows how the selected amendments have been grouped for debate. Amendments grouped together are generally on the same or similar issues. Decisions on each amendment are taken when we come to the clause to which the amendment relates. Decisions on new clauses will be taken once we have completed consideration of the Bill’s existing clauses—saved by the bell, maybe.

I remind the Committee that the Member who has put their name to the lead amendment in a group of amendments is called to speak first. In the case of a debate on clause stand part, I will normally call the Minister first to introduce the clause. Members who wish to speak in any debate should indicate to me that they wish to do so. At the end of a debate, I shall call the Member who moved the lead amendment, or the Minister in the case of a clause stand part debate, to speak again in conclusion.

Before Members who move an amendment or new clause sit down, they will need to indicate whether they wish to withdraw the amendment or to seek a decision. If any Member wishes to press a grouped amendment to a vote once we have disposed of the lead amendment, they should indicate that in the course of their speech on the group.

Clause 1

Great British Energy

[Pippa Heylings (South Cambridgeshire) (LD)]

I beg to move amendment 8, in clause 1, page 1, line 3, at end insert—

“within 6 months of the day on which this Act is passed.”

[The Chair]

With this it will be convenient to discuss the following:

Clause stand part.

New clause 1—Energy efficiency reporting—

“(1) Within two years of the date of Royal Assent to this Act and every 12 months thereafter, Great British Energy must report to Parliament on its progress towards the object of improvements in energy efficiency set out in Clause 3(2)(c).

(2) The report mentioned in subsection (1) must include—

(a) the means by which energy efficiencies are being made;

(b) an assessment over time of the energy efficiencies made; and

(c) the projected impact on consumer energy bills.”

[Pippa Heylings]

Thank you, Chair, and all Committee members. I apologise for being a moment late. My hon. Friend the Member for Bath will be slightly late too, but will be in Committee.

As we heard in the oral evidence, we need a lot of reassurance before we can be supportive of the scope of the Bill, because it is so wide-ranging. We understand that flexibility is needed, but so much comes down to the strategic priorities and the business case. As the Bill stands, there is no deadline for the production of the critical delimiting document in which the Secretary of State will state the strategic priorities to reassure businesses, communities, bill payers and Committee members that Great British Energy, within its broad and wide-ranging objects, will focus on the innovative and on what is not duplicating or perverting the market and is not uncompetitive, to ensure a fair playing field and that communities have a say and a part to play in the generation of energy, and receive the benefits as well.

All that will come out in the Secretary of State’s strategic priorities statement. I therefore propose some level of certainty for everyone—business in particular—by putting in a deadline for the publication of the statement, which we suggest should be six months.

[The Chair]

Is anyone up for a bit of a debate on this?

[Stephen Flynn (Aberdeen South) (SNP)]

I rise to speak briefly to new clause 1, which is grouped with amendment 8 and clause 1. It is very straightforward. It will be for Government Members to consider whether it is appropriate for the House of Commons to be in full knowledge and understanding of what the Government seek to do on energy efficiency. They must also consider whether the steps that the Government take in that regard should be reported to this House to ensure that we are fully abreast of the progress that the Government hope to make and how that meets the promises that they as individuals made to their constituents prior to the election. We as parliamentarians can collectively hold the Government to account on those promises and ambitions.

In discussions on further amendments, we will talk in more detail about the promises that were made, and hopefully the Government might be minded to agree to include some of those promises in the Bill. For now, though, I think it worth while for Members to consider the role that this Parliament plays in scrutinising this Government in a constructive fashion.

[Pippa Heylings]

No one can deny that, as the Minister said, we have seen huge progress coming through immediately, and commitment from the Government. I thought we would have heard from the oral evidence that certainty is critical, and therefore that giving a deadline and a timeframe in which people and businesses could expect to see the statement would be good reassurance. As the right hon. Member for Aberdeen South indicated, it would also be good to have some kind of revision. I hear from the Minister that the Government will not accept the amendment, so I will not press it to a vote, but it should be considered.

[Michael Shanks]

On the hon. Lady’s point, I reiterate our absolute commitment to move faster—frankly, far faster than in six months—to deliver the statement of strategic priorities. We will talk about that later in relation to further amendments.

On the point from the right hon. Member for Aberdeen South, we do not think the theme of the new clause is particularly important in this part of the Bill. It is important, of course, that the aim of Great British Energy is to be part of what will deliver cheaper bills for all, and efficiency, but it is only part of the story. Of course, in the election campaign we made it clear that across Government—yes, through Great British Energy, but also through a series of other measures, including our reforms to planning and including a lot of areas on which I am working closely with his colleagues in the Scottish Government to expedite progress—we will deliver cheaper bills.

The right hon. Gentleman must acknowledge, despite his not supporting Great British Energy so far—I hope that he and his colleagues will change their minds when the Bill comes back—that on this point it is in fact an important vehicle. [Interruption.] He looks as if he does not agree with what I said. He did not vote for the Bill on Second Reading, so I took it from that that he did not support it. It is important that he recognises that Great British Energy has a really important part to play in delivering what I have set out. His colleagues in the Scottish Government certainly think so, which is why we have been working so closely together on the matter.

--- Later in debate ---

[Michael Shanks]

If the hon. Gentleman is proposing that the Bill will be through Parliament by Christmas, that would be great—we could move forward. Of course, we need the Bill to have Royal Assent before we can move forward. I welcome his co-operation on making sure that it has a swift passage through the House of Lords and the Commons. We will move as quickly as possible. It is in no one’s interest, let alone that of a Government who are moving as quickly as possible to deliver this, for it to be delayed any further.

Finally, the requirement in new clause 1, tabled by the right hon. Member for Aberdeen South, to report to Parliament on energy efficiency measures is unnecessary because there are already many mechanisms for that. We have been consistently clear that Great British Energy will be operationally independent. I hope that the right hon. Gentleman will therefore not press his new clause to a vote.

[Pippa Heylings]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 1 ordered to stand part of the Bill.

Clause 2

Crown status

Question proposed, That the clause stand part of the Bill.

[Michael Shanks]

We are making great progress—this will be a good day. Clause 2 is straightforward. It ensures that Great British Energy will serve the public as an independent company and operate in the same way as any other UK company, that it will not have any special status, immunity or privilege normally associated with the Crown, and that its property will not be seen as property of the Crown. It will be subject to exactly the same legal requirements as all other companies. That is in line with the vision we had for Great British Energy from the beginning: that it should be operationally independent and an agile market player. We will ensure that it remains that way.

Question put and agreed to.

Clause 2 accordingly ordered to stand part of the Bill.

Clause 3

Objects

[Pippa Heylings]

I beg to move amendment 2, in clause 3, page 2, line 18, at end insert—

“(e) measures to increase low carbon and renewable energy schemes owned, or part owned, by community organisations.”

This amendment includes community energy schemes in the objects that the Great British Energy company will be restricted to facilitating, encouraging and participating in.

[The Chair]

With this it will be convenient to discuss amendment 9, in clause 5, page 3, line 8, at end insert—

“(1A) A statement under this section must include as a strategic priority, consistent with Great British Energy’s objects under section 3, measures to be taken to ensure that local communities benefit directly from low carbon and renewable energy projects operating within their area.”

This amendment would require the Secretary of State to set a strategic priority for measures to be taken to ensure local communities benefit from low and renewable energy projects operating in their area.

[Pippa Heylings]

The objects of Great British Energy need to be wide-ranging and flexible so that it can be innovative and pivot where necessary. But one issue, which the Liberal Democrats also raised during the oral evidence sessions, is community energy: that which is owned, managed and generated by, and brings benefits directly to, the community. We propose this amendment for the Government’s serious consideration because the founding statement for Great British Energy says that local communities will derive benefits. That is not just in the five functions but part of the purpose of Great British Energy. Juergen Maier says in his foreword to the founding statement that Great British Energy will actively co-invest and support communities to generate energy. That is fundamental. As most of the rest of the provision is for large-scale clean energy projects, it is critical to include the amendment in the objects, given that communities are included in the five functions in the foundational statement.

[Olivia Blake (Sheffield Hallam) (Lab)]

I thank the hon. Lady for her opening remarks on the amendment. Is there anything in the Bill that would preclude the kind of support for community energy projects that we have discussed in Committee so far?

[Pippa Heylings]

The debate so far has all been about the ability to delimit what limits Great British Energy, but that allows for everything else that has not been mentioned. However, it is critical to reassure everybody that Great British Energy is about both large-scale clean energy projects and community projects. I do not think the amendment would change or limit Great British Energy any further; it would add to the understanding of the objects. I do not think it would in any way pervert the flexibility in the wide-ranging objects; it would bring the necessary emphasis and balance between large-scale and community energy projects.

[Catherine Fookes (Monmouthshire) (Lab)]

I rise to speak to amendment 2, tabled by the hon. Member for Bath, which seeks to include community energy in the objects of the Bill. The amendment has gathered support from across the House. I find it encouraging that so many hon. Members understand the important role that community energy schemes play in our energy sector and our mission to make Britain a clean energy superpower.

Community energy schemes currently generate 0.5% of the UK’s electricity. However, studies by the Environmental Audit Committee show that they could grow twentyfold in the next 10 years. They not only power many homes but reduce our dependence on energy imports and support the development of critical local infrastructure, and of course they create local jobs. It is clear to me that community energy schemes play a key part in tackling climate change. I have seen at first hand in my constituency of Monmouthshire great schemes such as the community solar project at Bridges community centre, which saves the centre money, which can then be reinvested in the community.

Further afield, in Bangor Aberconwy, we have Ynni Ogwen, which does fantastic work to produce electrical energy from hydro power using the Ogwen river. Again, the profits are used to fund community and environmental projects in the community. My commitment to community energy is clear, as is the Government’s. We are inviting communities to come forward with projects and to work with local leaders and devolved Governments to ensure that local people benefit from energy production.

Although the amendment is well intended, it is not necessary. The Government and the chair of GB Energy himself made it clear at the evidence session on Tuesday that community energy will be a “core part” of GB Energy.

--- Later in debate ---

[Michael Shanks]

I take my hon. Friend’s point in the spirit in which it was intended and not as an attempt to rush me through the rest of these proceedings so we can get the Bill up and running, but we will move at pace. Every time he speaks, he is very good at reminding me that I need to visit those projects in Lewis with him at some point. He is absolutely right that it is important that we give communities, in whatever form—local government, local island communities, villages or towns —the ability to come together with the capacity to deliver on their energy potential.

I fundamentally believe that the Bill is at the heart of what the Government desire to do on the local power plan and community ownership more generally. We are absolutely committed to community energy, including through things such as what the Co-operative party has put forward. There is nothing in the Bill that prevents that from happening. For those reasons, I hope that the hon. Member for South Cambridgeshire will withdraw her amendment.

[Pippa Heylings]

It is wonderful to hear hon. Members say how supportive they are of community energy and give examples from their local areas. In Cambridgeshire, the expertise is still there—it is absolutely amazing. We have community energy projects, including wind energy, and a whole village has an off-grid heat network, which is a national case in point.

I ask the Minister once again to take into account the cross-party support for the amendment. It is not a bauble, nor is it about crossing t’s and dotting i’s; it is about public ownership models. At the moment there is real concern, because although we talk about the great things happening, in the latest meetings we have held with advocates of community energy, we have been told that it is in crisis. Although GB Energy is removing the barriers to large-scale clean energy projects, there are barriers to community energy, which is why we have so few new community energy projects, in contrast to the past. We need investment, but it is not just about the money and capacity. It is about the rights—the ownership model and the right not only to generate but to sell locally, with an equal cost to connect.

[Torcuil Crichton]

I take the hon. Member’s point about rights. Usually, land rights prevent communities from taking a stake in energy projects. Community-owned land, which we have plenty of in the Western Isles and across Scotland, is the key—land that the community has ownership of.

The other problem, which I am sure GB Energy should and will unlock, is access to the grid, to get community companies on to the grid; GB Energy and regulation from the Department should be crucial to achieving that.

[Pippa Heylings]

I thank the hon. Member for making that point about the cost for communities of connecting to the grid, which makes it completely unviable for them to do so. It is not about capacity; the communities know what they want to do and are ready to do it. Unfortunately, although there is a right to sell energy locally, the cost of connection makes it completely unviable.

[Wera Hobhouse (Bath) (LD)]

An additional problem is that small community energy projects cannot provide directly—cannot sell directly—to the consumer. That is one of the major problems. Therefore, the Government should really put their mind to it and accept our amendment, so that we can assure our communities that the Government are really serious about this issue. Does my hon. Friend agree?

[Pippa Heylings]

I very much agree. Indeed, I find it very hard not to agree with my hon. Friend, who tabled the amendment.

We are obviously waiting to see the local power plan. We hope that it contains detail not only about the benefits, as with the Scottish and Welsh examples, but about the ownership model empowering local communities to do this work.

Given the cross-party support for the amendment, I will not withdraw it.

Question put, That the amendment be made.

--- Later in debate ---

[Pippa Heylings]

I beg to move amendment 10, clause 3, page 2, line 18, at end insert—

“(e) an emergency home insulation programme with targeted support for people on low incomes, and

(f) the expansion and development of renewable energy and technology.”

This amendment would set objects for Great British Energy of facilitating, encouraging and participating in an emergency home insulation programme with targeted support for people on low incomes, and the expansion and development of renewable energy and technology.

As I understand it, the Bill’s scope has changed, enabling us also to consider the customers in all of this and the benefits to customers from the creation of Great British Energy. For that reason, the issue of home insulation should be considered.

The need for Great British Energy and the demand for the energy that is being created is also generated by the amount of energy that leaks from cold, draughty homes. We are approaching winter now. In my constituency of South Cambridgeshire and, I am sure, in constituencies across the country, including those represented by Members of this Committee, a large number of people, many of them vulnerable, are in cold, damp homes. Although those people may be able, through their local authority, to have some renewable energy features and insulation added to their home, a proper emergency home insulation programme—not just for this winter but for the long term—is not being considered.

As we know from the Climate Change Committee, the calculation of the demand for energy generation changes when we look at the amount of energy lost through heating homes. We would need to generate less energy if we managed our home insulation programme. I therefore think that it is within scope to show not only the price of people’s bills but the standards under which they are living in their homes, and the amount of energy being lost without a home insulation programme. I know that the Government have their warm homes plan, which we will see in the spring, but we should consider home insulation within energy efficiency, given the importance of GB Energy to the consumer.

--- Later in debate ---

[Michael Shanks]

We have not dropped any announcement on reducing bills, but GB Energy was not going to be the single thing that would deliver that; it was the Government’s whole energy strategy. It is important to say that. I said in my evidence to the Committee on Tuesday that GB Energy is an important part of delivering that, but it is not a silver bullet. It will not be the thing that deals with every single aspect of our energy policy. It is also about what we are doing, for example, around increasing the renewables auction to get more cheaper energy on to the grid. It is about what we are doing around planning, consenting and connections. All that work is related to bringing down bills in the long term.

The Conservative party—the party that was in government when all our constituents suffered some of the highest price spikes that we have ever experienced—has to recognise, as it did for many years until it moved away from this policy, that the only way to reduce our dependence on the volatile markets that have led to increases in bills is to move towards greener, cheaper energy in the long term. That is what GB Energy is about delivering, that is what will bring down bills in the long term, and that is what we continue to deliver through this Bill.

I turn to paragraph (f) of amendment 10, which I am afraid we cannot support today, partly because it says what is already in the Bill on expanding renewable energy and technology. The Bill itself facilitates exactly those points and defines clean energy as

“energy produced from sources other than fossil fuels.”

That existing object already enables Great British Energy to drive the deployment of clean energy, helping to boost our energy independence, create jobs and ensure that communities reap the benefit of home-grown energy. Therefore, as a whole, amendment 10 is unnecessary, as the Bill already enables all of those points in clause 3.

The words of the hon. Member for South Cambridgeshire are heartfelt and have been genuinely heard; I hope she gets that sense from all my hon. Friends and me. Such initiatives are an important part, not of GB Energy in itself, but of the whole Government’s mission to make communities in their households much safer from the lack of insulation and cold homes from which they are suffering at the moment. For those reasons, we will not support the amendment, and I hope that the hon. Lady will not press it.

[Pippa Heylings]

I thank all hon. Members for their serious consideration of the amendment. The hon. Member for Sheffield Hallam said that it was important to consider the role that energy efficiency plays within overall demand. I agree that it is part of the wider policy, but I think it is also critical in the context of GB Energy, because there is room for interpretation of clause 3(2)(c), which is about energy efficiency, as in energy efficiency in the process of generating energy.