Community Energy Schemes

Debate between Wera Hobhouse and Hilary Benn

Tuesday 30th November 2021 Westminster Hall

[Wera Hobhouse (Bath) (LD)]

I beg to move,

That this House has considered the matter of empowering community energy schemes.

It is a pleasure to serve with you in the Chair, Mr Betts. I start by thanking Steve Shaw and Power for People, who have worked tirelessly on the campaign to unblock community energy. I also thank the hon. Member for Wantage (David Johnston), who is promoting the Local Electricity Bill in this Session. I am pleased to see the hon. Members for Waveney (Peter Aldous) and for Ceredigion (Ben Lake), with whom I have worked closely on the campaign, in the Chamber. They are enthusiastic champions for community energy in the House, and I look forward to their contributions.

Imagine a future where people can purchase clean electricity directly from a local supply company or co-operative and where every pound spent on powering our homes or cars is recycled back into the local community, supporting jobs, funding new facilities and services and contributing to renewable energy infrastructure. That is what community energy is about: ensuring that people everywhere support and benefit from the clean energy transition.

Solving the climate crisis and meeting our net zero ambitions will require huge changes that will be seen and felt directly by people everywhere. We need a radical shift in industrial systems, technology and business models, which must be underpinned by strong and decisive Government action and the right policies. However, one of the most crucial requirements is bringing people on board for the transition to net zero, because they have to pay for the transition through their energy bills and taxes, they have to host new infrastructure in their neighbourhoods and on their landscapes, and they need to alter their routines and behaviours.

Unless we bring people on board for the transition to net zero, there is a huge risk that the public will not welcome or even accept the necessary changes. The consequences of that will be that our progress to net zero will be much more lengthy, costly and contested, and it will be less inclusive, equitable and environmentally sustainable. The real strength of community energy is its connection to people and places. It is people who make community energy what it is, and it is people who will see the benefits. That is what we are trying to achieve with the Local Electricity Bill.

Community energy is one of the few tried and tested means of engaging people in energy systems. The Bill would lead to energy market reforms that would empower community-owned and run schemes to sell local renewable energy directly to households and businesses. It would make new community energy businesses viable and, by bypassing large utilities, those businesses would keep significant additional value within local economies.

[Hilary Benn (Leeds Central) (Lab)]

I congratulate my hon. Friend—she is my hon. Friend on this subject—on securing the debate. As I understand it, the Government argue that the means to enable new suppliers to come into the system are available. However, when I recently inquired about how many Licence Lite applications, which are meant to help new energy suppliers enter the market, had been granted by Ofgem, the answer was that three licences have been granted since 2015 and none has been applied for since 2019. Might that not suggest some changes are needed to make it easier for new suppliers to enter the market?

[Wera Hobhouse]

The right hon. Gentleman is absolutely right. Something does not work, and I will come on to why it does not work. The whole system is outdated and does not allow for the changes that we need to make to get to net zero. We have to test what works on the ground. The number of licences that have been granted speaks for itself. We have made no progress, yet the Government accept that community energy is a good thing and we should all support it.