Lord Callanan Portrait The Parliamentary Under-Secretary of State, Department for Energy Security and Net Zero (Lord Callanan) (Con)
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My Lords, Amendment 274B was added to the Energy Bill during the previous consideration of Commons amendments. As the House will be aware, the amendment was debated in the other place last week and the Government Motion to disagree to the amendment was passed with a substantial majority.

I can confirm to the House that our position remains the same. The amendments would commit the Government to a consultation on the barriers preventing the development of community energy schemes. The amendment sets out with whom we would consult and commits the Government to bringing forward proposals to remove identified barriers to community energy within a brief six-month timescale.

I welcome the constructive engagement from across the House, in particular from the noble Baroness, Lady Boycott. I welcome her continued efforts throughout the passage of the Bill to ensure that the interests of the community energy sector are heard in this Chamber, but I reassure the noble Baroness that, on this issue, the Government have already made a clear commitment to the consultation.

As part of this commitment, we have outlined that we will engage in an open and collaborative way with the community energy sector, via the community energy contact group, to design the consultation. In fact, officials are already engaging on exactly that, and earlier this month held a very constructive discussion on the consultation with the group. Given our existing commitment to consult, and our ongoing engagement with the sector, we therefore believe that it is of no additional value to put the specifics in primary legislation.

In addition, there are further issues with the previous amendments that meant that we could not support their inclusion in the Bill. We clearly cannot commit to putting forward proposals to remove barriers that are preventing the development of community energy schemes before we know what barriers are raised in the consultation, or the implications of removing them. It would be remiss of us to agree to put that into primary legislation. Placing this obligation on the Government would be putting the cart before the horse.

However, I reassure the House yet again that the Government will carry out the consultation and continue to work closely with the sector to do so. I also reiterate the Government’s support in principle for community energy; we recognise the role that community groups play in our efforts to eliminate our contribution to climate change. I participated in a great visit to North Kensington Community Energy two weeks ago where I was able to see first-hand some of the important work that the sector does and to meet the contact group.

More widely, government support for the sector is demonstrated through existing support that we have already put in place, such as the £10 million community energy fund. I am pleased to tell the House that we aim to open applications to that fund as soon as we possibly can.

Baroness Boycott Portrait Baroness Boycott (CB)
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I thank the Minister very much for his sort of co-operation through the passage of the Bill. It is hugely important. It was introduced about 16 months ago, and I do not wish to delay it any further. But I speak with great regret that the Government find themselves unable to agree to my simple and incredibly uncontroversial amendment, which just seeks to clarify the Government’s commitment to consult on the barriers that community energy schemes face. I am very pleased that the Minister went to visit one that was working, but I assure him that a lot are not.

While I welcome the steps the Government have taken to re-establish the community energy fund—for instance, reporting to Parliament and consulting—it is important to put a timescale on these plans; 18 months is fair and reasonable. Without a timescale there is a risk that this will not happen. It has been demonstrated that this issue has widespread support across both Houses. When we have something that we agree on, we ought to just get on with it and do it. I fear that this small but significant issue will get drowned out in next year’s general election. I would appreciate reassurance from the Minister that this is a needless worry and that the Government are committed.

I would just like to get some clarity on a couple of points. What will be the basis of this annual report to Parliament? Is it simply to report on the progress of projects, or will it address the challenges that we face and the best route to sort them out? My amendment also sought to ensure that, should any consultation find that there are barriers—new barriers, for instance—the Government will commit to taking steps to address these. Being candid, we know that there are barriers, and I appreciate the argument that you should not legislate for the unknown, but I am simply trying to get an assurance that they would plan to lift barriers that we know are there—including ones that we do not know.

To return to the issue of the consultation, we have rehearsed what issues need to be resolved; thanks to the Bill committee in the other place, there are many views on record. I do not believe that much is likely to change in the next year. While I agree that we should follow due process here, it must not be used as a reason for delay. I urge the Minister to open this consultation ASAP, so that we can get this ball rolling.

Baroness Bennett of Manor Castle Portrait Baroness Bennett of Manor Castle (GP)
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My Lords, I rise very briefly and with great pleasure following the noble Baroness, Lady Boycott, who has done such an enormous amount of work on this issue—I pay tribute to that.

I was the person who started these amendments on their way back in December 2022, after we started work on this Bill last July. A consultation is something but what we really need is action, so I have a simple question for the Minister. As he said, this consultation has already started this month; if the Government see or identify through that consultation some simple, easy-to-remove barriers, will they act on them immediately rather than waiting for the end of the formal process? Surely, if action can be taken then projects, such as the one in Kensington to which the Minister referred, can go forward.