Great British Energy Bill

Baroness McIntosh of Pickering Excerpts

2nd reading
Monday 18th November 2024 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

My Lords, I declare my interests, especially as honorary president of National Energy Action. I congratulate the noble Baroness, Lady Beckett, and the noble Lord, Lord Mackinlay, on their excellent maiden speeches. They are both remarkable role models in their own right. I also congratulate the Minister, who has sat through all the speeches today and displayed his staying power and great interest in this subject. I wish him well through the passage of the Bill.

The country is facing twin challenges of energy and food security. They are both extremely serious and should be tackled together. Specifically, I agree with all those who have said that the remit of the Bill is extremely broad—too broad. I hope we can clarify that through its passage, as one of my concerns is that this is a potentially massive land grab.

I would like to explore how relationships with those affected by the decisions will be handled. There is talk of consultations, but there must be more joined-up decisions between the Government, investors, local authorities, local communities and consumers. Take the position of offshore wind farms: consent for the wind farm is currently given separately from consent for the substation needed to land the energy onshore, then separate planning permission is sought for the overhead power lines. These pylons to transfer electricity long distances, losing up to 10% of the energy in transmission, are deeply unpopular among those in rural communities, who have to live with them but recognise that they have absolutely no benefit to those living there. Can the Minister explain and define the engagement process with interested parties—for example, farmers, fishermen, residents, consumers and industry? What form will that consultation take?

The Bill seems to give a blanket power to the Secretary of State to decide. There is very little parliamentary oversight, merely reports to Parliament. In Clause 5:

“The Secretary of State must prepare a statement of strategic priorities for Great British Energy”.


He

“may revise or replace the statement”,

but need only

“lay a copy of the statement, and of any revised … statement, before Parliament”.

We need to amend that to have greater parliamentary oversight over the Secretary of State’s powers, so that they are not completely untrammelled.

There needs to be formal consultation with the interested parties before decisions are made. Take the example of the spatial squeeze; it has raised very real concerns among fishermen about how their fishing grounds risk being squeezed out by offshore wind. I wonder whether the Minister has already had the opportunity to meet with farmers, and particularly with fishermen, to address their concern about this spatial squeeze. What form does the Minister expect the relationship with these interested parties to take—not just with farmers and fishermen but with intensive energy users, such as brickmakers, those in ceramics and others in the manufacturing sector? What form of consultation will there be?

The Minister referred briefly to finance and talked about some finance coming from the national wealth fund. He will be aware that the Association of British Insurers has been closely engaging with the Treasury on the development of this fund, and I was very pleased to receive a briefing from it. The ABI hopes that the national wealth fund’s success will be in

“unlocking investment, delivering economic growth and creating new green high skilled jobs”,

but it has identified current barriers that could prevent this happening. They include the need for

“a national transition plan … sector specific investment roadmaps, especially for the five priority sectors identified by government”.

I will name them:

“green steel, green hydrogen, industrial decarbonisation, gigafactories, and ports”.

It also identifies the need for

“greater engagement between investors and local authorities to develop investable propositions”.

To ensure the success of Great British Energy and the funding from the national wealth fund, how does the Minister expect the current barriers identified by the ABI to be addressed?

I turn to sustainable sources of energy. We had a little debate on Drax at Oral Questions last week. It raised the question of why we are importing woodchip from abroad when we could use more sustainable, locally produced willow coppice and miscanthus, easily meeting the Government’s own sustainability criteria. Equally, we should use offshore and onshore wind energy locally, close to where it was produced. That would reduce the need for pylons; as I fear the Minister will find out, rural dwellers do not accept them criss-crossing the countryside, bringing no benefit to them locally.

The Minister did not mention energy from waste. Together with renewable energy, this is a very powerful strand of energy source in Denmark, Sweden, Austria, Germany and other European countries. It disposes of household waste and creates energy. What is the Government’s position on this?

Environmental levies of £2 billion are added to energy bills, primarily in the standing charge to every household and business, which goes towards future infrastructure. I ask the Minister to name any other utility or public service whose future infrastructure is paid for up front by the consumer.

Offshore-generated wind coming on shore at massive power stations poses problems, particularly when transported long distances to the national grid. We are soon to see offshore floating turbines to replace fixed turbines at sea. I urge the Minister to address these problems and to meet with the fishing fleet to avoid dangers not just of their grounds being squeezed but to marine life, porpoises and dolphins from the constant buzz of turbines. What happens to wind turbines and electric vehicle batteries at the end of their working lives? How will they be disposed of? These two issues alone, among others, create real environmental challenges.

At COP 24 the Prime Minister agreed and signed up to an 80% reduction in emissions. This will impose a heavy burden on households and businesses alike going forward, while countries that deny climate change, such as the US, China, India and Brazil, continue to pollute regardless to ensure that their industries remain competitive.

In conclusion, I simply ask how this Bill to create Great British Energy will benefit Great Britain, given the massive impact the work of the company will have on the countryside, local communities, industry and consumers.

King’s Speech

Baroness McIntosh of Pickering Excerpts

Thursday 18th July 2024 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

It is a pleasure to contribute to the humble Address, and I take the opportunity to congratulate the incoming Government and to welcome the Ministers to their new positions. I also add my congratulations to my noble friend on his maiden speech.

I declare my interests as honorary president of National Energy Action, honorary vice-president of Association of Drainage Authorities, and honorary associate of the British Veterinary Association. I co-authored a number of reports on bricks and water with the Westminster Sustainable Business Forum, and on rural housing from the Rural Economy Research Group. I would like to share these with the noble Baroness, Lady Hayman, for her greater enjoyment and education in her new role.

In exploring the impact of housebuilding and energy proposals for more onshore wind farms, I urge a degree of caution. I pay tribute to the late Professor Mike O’Carroll, who set up REVOLT—Rural England Versus Overhead Line Transmission—opposing the erection of pylons in the north of England.

As a newly elected MP for the Vale of York in 1997 —I was elected on the same day as the newly installed noble Baroness, Lady Smith of Malvern—I was faced with Labour’s plan to build a second line of pylons down the spine of the constituency, transporting electricity all the way from Middlesbrough, across North Yorkshire to the south, through the national grid to serve the south of England. This attracted public outrage.

At the very least, these power lines should be placed underground. Alternatively, electricity generated from renewables should serve those closest to the source of the power generated. That includes energy from waste, on which this Government have so far remained silent. Will the Government commit to new energy from waste plants, again to serve the local community with a sustainable source of energy, but also disposing of household waste that might otherwise go to landfill? We should aim to use energy where it is created to the benefit of the local community.

In addition, between 3% and 7% of energy is lost in overhead line transmission. It is vulnerable to extreme weather. During Storm Arwen, for example, power was lost in the north-east of England and North Yorkshire for up to nine days. Will the Government be minded to revise the National Planning Policy Framework and planning practice guidance to ensure joined-up planning applications so that planning for offshore and onshore wind farms include the siting of substations as part of the original planning application?

Labour has rightly prioritised cleaning up the rivers and waterways of sewage, but the problem of sewage in rivers and sea starts with the mass building of four and five-bedroom houses in inappropriate places, pushing four or five times the amount of sewage into inadequate water pipes. Will the Government make an early pledge to end the automatic right to connect, promised since Sir Michael Pitt’s review after the 2007 floods? Will the Government commit today to implementing Schedule 3 to the Flood and Water Management Act 2010? Equally, will they introduce mandatory sustainable drainage systems for all new housing developments? That is a single measure that would help to prevent sewage overflow into the combined sewers and, from there, into our rives and seas.

Defra must make water companies statutory consultees in the planning application process, particularly where it is impossible to connect safely to existing pipes, which are often antiquated and from the Victorian era. Planning applications must take into account that they cannot simply fit and must ensure that the developers pay for the connections.

What is the position of the Government on building on functional flood plains? Labour, in opposition, supported the amendment in my name and that of the noble Baroness, Lady Hayman of Ullock, to the then Levelling-up and Regeneration Bill to prevent building on functional flood plains. Will the Government now honour that commitment? In particular, will they provide resources to local authorities to undertake the essential mapping exercise to establish which zones fall under zone 3b so as to exclude them from major developments, which is so essential to prevent future flooding?

There are specific needs for housing in rural areas, as specified by the right reverend Prelate the Bishop of St Albans. In particular, there is a crying need for one or two-bedroom homes that are affordable. We have identified initiatives such as rural exception and making a planning passport for all exception sites, which would help to remedy this.

The Government have pledged to grow the economy through reforming the planning system, but they must never lose sight of the fact that an Englishman’s home is his castle, nor that it is local planning authorities that are best placed to take planning decisions. The British public will not take kindly to housing developments built on areas prone to flooding, nor to having unsightly overhead power lines and pylons built alongside their houses. If the energy generated was used close to the source of supply, the need for overhead line transmission would be removed.

Now, we have to eat. I applaud all our farmers do to put food on our table. I pay tribute to the Yorkshire Agricultural Society, Upper Teesdale Agricultural Support Services, of which I am a patron, RABI and FCN. These charities support farmers in the difficult times we face currently. I make a plea to the new Government to give farmers certainty to ensure that food security and self-sufficiency in production at home ensure a safe and affordable supply of food. Large rafts of land should not be lost to rewilding, solar energy production and tree planting. The role of farming in bringing environmental benefits, such as the sequestration and storage of carbon, should be recognised, celebrated and encouraged. Giving those farms currently in higher-level stewardship agreements the right to exit the old schemes early, to move to a Countryside Stewardship agreement in the next few months, would greatly assist them in this period of transition, with the rapid reduction in basic farm payments.

I urge the new Government to support our farmers in exporting their goods by creating export opportunities in Europe and further afield. I applaud the introduction by the last Government of agricultural attachés, who worked effectively to promote our food and farming exports. I would welcome the negotiation by the Government of a sanitary and phytosanitary agreement with our European neighbours, which I believe is more appropriate than the negotiation of a veterinary agreement. The incoming Government must strive to ensure that any food imported into the UK meets the same high standard of animal health, animal welfare and environment as food produced here.

Farm tenancy agreements are in urgent need of reform, and I urge the Government to tackle this as a priority. Fifty per cent of farms in the North Yorkshire and County Durham are tenanted, and these tenant farmers deserve certainty and access to funds through LMS.

Finally, will the Government take the opportunity of the debate today to ensure a vibrant future for our rural communities across Britain, with a strong and sustainable farming sector and housing which is fit and affordable for those starting out on their career, as well as for those nearer their retirement?

Strategy and Policy Statement for Energy Policy in Great Britain

Baroness McIntosh of Pickering Excerpts

Monday 25th March 2024 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Energy Security and Net Zero (Lord Callanan) (Con)]

My Lords, the past few years have brought unprecedented challenges and uncertainty to Great Britain’s energy system. But we have remained resilient and last year laid the foundations for an energy system fit for the future with the landmark Energy Act 2023, which I know many noble Lords were involved in. It was the largest piece of energy legislation in the UK in a generation, and a world first in legally mandating net zero.

The changes in that Act, including the powers to establish the National Energy System Operator, NESO, and new duties for Ofgem, mean that now is the right time to reaffirm the Government’s strategic priorities and policy outcomes in this strategy and policy statement. The Draft Strategy and Policy Statement for Energy Policy in Great Britain is developed according to Part 5 of the Energy Act 2013. It sets out in clear terms the Government’s strategic priorities and other main considerations of their energy policy, the policy outcomes to be achieved, and the roles and responsibilities of persons involved in implementing that policy.

The Secretary of State, Ofgem—the independent regulator for gas and electricity markets in Great Britain —and the NESO, a new independent public corporation responsible for planning Britain’s electricity and gas networks and operating the energy system, will be required to have regard to the strategic priorities set out in this SPS. The Secretary of State and Ofgem must also have regard to the policy outcomes contained within the SPS, and they must both carry out their respective regulatory functions in a manner that they consider best calculated to further the delivery of the policy outcomes.

The NESO is expected to be established this year. The SPS serves an additional purpose of setting out and clarifying the roles and responsibilities of the NESO, alongside Ofgem and the Government. The SPS is intended to provide guidance to the energy sector on the actions and decisions needed to deliver the Government’s policy goals, and places emphasis on where the Government expect a shift in the energy industry’s strategic direction.

As the independent energy regulator for Great Britain, Ofgem cannot be directed by the Government on how it should make decisions. Similarly, the NESO is being set up to be operationally independent and free from day-to-day government control. However, the SPS will provide guiding principles for Ofgem and the NESO, when it is established.

The strategic priorities and policy outcomes within the SPS do not include the creation of any new policies or duties. The SPS reaffirms the Government’s existing priorities and commitments, such as affordability, protecting consumers, security of supply, net zero, investment ahead of need, and encouraging Ofgem to make full use of its enforcement powers to support these ambitions. This statement will therefore support strategic alignment between government, Ofgem, NESO and the industry, through making clear what government wants to achieve in the energy sector.

As mentioned, the legal framework of the Energy Act 2013 means that Ofgem, NESO and the Secretary of State all have a duty to have regard to the strategic priorities within the SPS. Ofgem and NESO must also give notice to the Secretary of State if, at any time, they conclude that a policy outcome contained in the SPS is not realistically achievable. Ofgem must also publish a strategy showing how it will further the delivery of the policy outcomes, and its annual report must assess its contribution to delivery of the policy outcomes. The SPS therefore acts as a tool to promote alignment between government, Ofgem and NESO, as all parties will have to have legal regard to the statement in some sense.

As per the Energy Act 2013, the SPS has completed two consultations. The first consultation was undertaken with Ofgem and the Welsh and Scottish Governments. Government worked with all parties to make sure that their views were correctly captured before moving on to a second, public consultation held last summer. In the public consultation, government received views from Ofgem, the Scottish Government, ESO and many stakeholders across industry, including businesses, investors, trade bodies, suppliers, generators and infrastructure operators.

Feedback throughout both consultations was generally positive, and stakeholders were keen to see an SPS implemented to give guidance to the sector and clarity on the roles of Ofgem, NESO and government in delivering the Government’s priorities for the energy sector. Since the consultations have concluded, officials have worked through that feedback and, where appropriate, have used this to inform the current iteration of the SPS which is now laid before your Lordships. The Government are confident that this SPS reflects the right strategic priorities and policy outcomes for energy policy for the whole of Great Britain.

I thank the Secondary Legislation Scrutiny Committee for the time it has taken to review the SPS, as well as the noble Lords, Lord Hollick and Lord Lennie, the noble Baroness, Lady Hayman, and others, for their interest in the development of the SPS.

In conclusion, the SPS reaffirms the Government’s commitments and priorities for the energy sector and, in doing so, acts as a tool to support alignment between government, Ofgem, NESO and industry. I beg to move.

[Baroness McIntosh of Pickering (Con)]

My Lords, I congratulate my noble friend on bringing forward the draft strategy and policy statement, which I support.

As president of National Energy Action, and focusing on the SPS’s aims of affordability and protecting consumers to which my noble friend referred, I want to put a question to him. Although I accept, as the department explains in paragraph 46—this was also referred to by the Secondary Legislation Scrutiny Committee—that although Ofgem is independent of government, the regulator is required to

“have regard to the strategic priorities set out in this statement when carrying out its regulatory functions”,

does my noble friend share my concern, particularly for those living in fuel poverty, that although a consumer has control over the unit cost of electricity they are purchasing, they have less control over the standing charge? My understanding of the changes being brought in on 1 April, is that, although we are reducing the unit cost to the consumer, the standing charge is going up incrementally. I imagine, in a very short order—possibly two to three years’ time—that instead of standing charges going up to 50p or 70p, they will cost up to £1 per day. I believe that for many living in fuel poverty that is unaffordable.

So, while I accept that Ofgem should operate independently of the Government, I recall that in 2014, as part of the price review that the water companies’ regulator Ofwat carried out, the Government issued a request to Ofwat to have regard to the affordability of customers’ bills. My question to my noble friend is: is that something the Government might be minded to do under this SPS, in order to have regard to affordability and protecting consumers?

Biomass: Power Generation

Baroness McIntosh of Pickering Excerpts

Wednesday 13th March 2024 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

My Lords, will my noble friend look clearly at developing more home-produced products, such as fast-growing willow coppice, that will both give a sustainable source of energy to Drax but also help hard-pressed British farmers at this time?

[Lord Callanan (Con)]

My noble friend makes a good point. It is not just Drax; there are many commercial and domestic biomass boilers as well that I am sure would be happy to use sustainable British-produced biomass.

Electricity Network Connection Action Plan

Baroness McIntosh of Pickering Excerpts

Wednesday 22nd November 2023 Lords Chamber

[Lord Callanan (Con)]

I think the noble Baroness will find that Ofgem’s view is that it was already fulfilling that mandate—and, of course, the vast majority of the new connections are because of new renewable electricity, which is to fulfil our net-zero obligations. Ofgem is fully in line with that.

[Baroness McIntosh of Pickering (Con)]

My Lords, does my noble friend not agree that it would make more sense to keep locally the electricity that is generated in the North Sea and coming onshore in Scotland, the north of England and Humberside, which have some of the coldest and poorest-insulated households in the UK?

[Lord Callanan (Con)]

I am not sure I understand the point my noble friend is making. The reason we have a national grid is to distribute electricity around the country so that all communities get the chance to benefit. If you had a much more localised system of grids, it would be much more inefficient. The whole idea or principle of the national grid is that the whole country can benefit from all our renewables infrastructure.

Biomass Strategy 2023: Cross Sectoral Sustainability Framework

Baroness McIntosh of Pickering Excerpts

Wednesday 15th November 2023 Lords Chamber

[Lord Callanan (Con)]

I am pleased to hear that the noble Baroness has a biomass boiler. In fact, she does not need to get rid of it, because if she sources her pellets from the appropriate sources, that is a renewable resource. These are not pellets from virgin forests but by-products from the timber production process. There are very strict sustainability criteria attached to them and, even if those pellets were not used for biomass production, they would be a waste product because the timber would still be harvested for its other uses. So the noble Baroness does not need to feel so guilty.

[Baroness McIntosh of Pickering (Con)]

My Lords, will my noble friend look favourably on taking fast-growing willow coppice and miscanthus from local growers right across Yorkshire to give a constant stream of reliable, sustainable farm produce to Drax going forward?

[Lord Callanan (Con)]

I did not quite hear the start of my noble friend’s question, but if she is asking whether we want to source more sustainable biofuels from UK sources, the answer is yes, absolutely.

2030 Emissions Reduction Target: Heating

Baroness McIntosh of Pickering Excerpts

Tuesday 5th September 2023 Lords Chamber

[Lord Callanan (Con)]

Public acceptability is a key component; that is why we ruled out Whitby for the trial. Redcar is the only other location being considered.

[Baroness McIntosh of Pickering (Con)]

My Lords, does my noble friend agree that decarbonisation would be faster if we had better insulated rental properties, rather than seeing most of the heat go through single-glazed windows, particularly in the north of England?

[Lord Callanan (Con)]

I would not characterise just rental properties in that way; whatever form of heating is used, better insulation and better performance of buildings is a good thing.

Road Fuel Prices

Baroness McIntosh of Pickering Excerpts

Tuesday 4th July 2023 Lords Chamber

[Lord Callanan (Con)]

As I just said to the noble Baroness, Lady Blake, we will legislate as soon as we can. We will consult on the secondary regulations in the autumn, but we cannot implement them until we have the primary legislation through. There are of course a number of existing fuel price checkers, but the problem is that they are not updated frequently enough and are not compulsory, so not all retailers have to take part in them. When we have the powers, there will be a compulsory scheme and all retailers will be expected to comply.

[Baroness McIntosh of Pickering (Con)]

Does my noble friend agree that the excessive prices that have been charged have had a disproportionate impact on rural motorists and have added to the cost of deliveries of foodstuffs and other items? Is that something that the Government will keep a watchful eye on?

[Lord Callanan (Con)]

My noble friend makes a good point. For many rural areas, where filling stations perhaps do not get the throughput of customers, prices tend to be higher anyway. It is certainly something we want to keep an eye on to make sure that rural customers are not disadvantaged.

Drax Biomass Power Station

Baroness McIntosh of Pickering Excerpts

Monday 3rd July 2023 Lords Chamber

[Lord Callanan (Con)]

The noble Lord should be careful of jumping to conclusions. I have not seen the programme, but my officials have. They have engaged extensively with forestry experts and Canadian officials following the programme, and the officials’ conclusion is that the “Panorama” programme provided an inaccurate representation of practices by the forestry and biomass sector on the ground.

[Baroness McIntosh of Pickering (Con)]

My Lords, looking at renewables more broadly, does my noble friend have a view on the efficacy and morality of taking electricity that has been generated offshore in the Yorkshire and Humber region and transporting it all the way down to the West Midlands, when we could actually use that electricity locally, particularly to power up electric cars, for which there are so few charging points in rural areas?

[Lord Callanan (Con)]

I have to say that I am really not sure what the noble Baroness is talking about. There is a national grid. Electricity is transported from all parts of the country to other parts, as demand varies. That is the whole principle of a grid.

Retained EU Law (Revocation and Reform) Bill

Baroness McIntosh of Pickering Excerpts

Consideration of Commons amendments
Monday 26th June 2023 Lords Chamber

We have travelled on a long journey, as I say, and have made some progress in the Minister’s speech today. We have not quite ended up at the destination that I would have hoped to end up at, but, at this point, I beg to move.

[Baroness McIntosh of Pickering (Con)]

My Lords, I echo some of the concerns expressed by the noble Lord, Lord Krebs. In moving the amendment, my noble friend the Minister referred to the amendments from the Commons, completely overlooking the fact that there is no legislative consent. Scottish and Welsh legislative consent has been withheld, and I understand that the Government have not yet heard from Northern Ireland. I think that he referred to the fact that we have now moved on and do not have to rely on the other member states to pass our environmental laws, but I would feel more comfortable if the four nations agreed on what the environmental principles should be. I would be very pleased to hear from my noble friend what he believes the situation currently is.

I have just one word of caution. I fear that environmental protections are not as secure as perhaps we might be led to believe by this Government. We have just had brought into effect two ground-breaking free trade agreements with Australia and New Zealand, both of which have set lower standards for imported meat and foodstuffs, which do not meet the same requirements of animal welfare and environmental protection such as our home producers have to meet. That is another source of concern.

Perhaps my overriding concern is that we have seen already—despite the fact that they said that they would not do this—that the Government have overturned primary legislation through secondary legislation in the form of a statutory instrument in the past two weeks.

I have outstanding concerns on these amendments, but I respect the fact that our power is limited to scrutiny in this Chamber. I believe that the Bill is in a better place than when it was first introduced to this House, but I have concerns about what will happen when it leaves this place.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise briefly to express great concern about the lack of any offer on non-regression. I am going to bring this back to the absolute physical reality of the UK and the England that we are in today. In the other place, the Science, Innovation and Technology Committee has started an inquiry into the impact of insect decline on food security. If anyone wants to see the practical reality of this, I invite them to go out the back of the Foreign Office today, where a wonderful wildflower meadow has been created—they should go and look at it and ask where the insects are, because there are practically no insects there.

We have insect decline and a decline in our plants. Non-native plants now outnumber native plants in the UK: that is the state of the UK today. We have, right now, a huge, category 4 marine heatwave, which is going to have a huge impact on our marine world. It is very clear that the protections for the environment that we have now are vastly not enough, yet we are not promising even to maintain them. I ask everyone in this House to consider what people in the future will think when they look at today’s debate.