Clause 4 - Amendments of the Utilities Act 2000
Sustainable Energy Bill
11:15 am
Mr Brian White (North East Milton Keynes, Labour)
When I originally moved clause 4 it was to place on Ofgem a duty to have regard to the treatment of sustainable energy policy. Also, regulatory impact assessments for Ofgem were mentioned in the White Paper. New clause 2 combines those two, and makes it clear that the authority will be required for all its important proposals to undertake impact assessments, including environmental impact assessments, unless it considers the matter one of urgency or that an assessment is unnecessary. Where an assessment is not undertaken because the authority considers it unnecessary, the authority will be required to publish a statement setting out its reasons why.
The new clause requires the authority to be given general guidance in conducting the impact assessment. Hon. Members will be aware that considerable detailed guidance is available on the procedure, scope and content of impact assessments. The assessment must include an environmental assessment, and the authority is obliged in its annual report to give details of assessments conducted. On the basis of that provision, I am persuaded that an additional duty to have regard to a sustainable energy policy is unnecessary as the key elements of sustainability—social, environmental and economic objectives—are already set out. The new clause would achieve the objective that I wanted to achieve in clause 4.