Clause 181 - Adjustment of transmission charges
Energy Bill [Lords]
11:15 am
Amendment proposed: No. 198, in
clause 181, page 138, line 38, leave out from 'must' to end of line 46 and insert—
'(a) publish a draft of any scheme proposed to be established by the order;
(b) publish an assessment of the costs likely to be incurred by different persons in consequence of the order; and
(c) consult authorised suppliers and such other persons likely to be affected by the order as he considers appropriate.
( ) An assessment published under subsection (7)(b) must set out, in particular, the Secretary of State's assessment of the likely effect of the order on charges for electricity in Great Britain.
( ) Subsection (7) may be satisfied by publications and consultation taking place wholly or partly before the commencement of this section.'.—[Nigel Griffiths.]
Mr Jonathan Sayeed (Mid Bedfordshire, Conservative)
With this it will be convenient to discuss Government amendment No. 199.
Mrs Anne McIntosh (Shadow Minister, Environment & Transport; Vale of York, Conservative)
Would a proposal to adjourn be appropriate? I will speak for more than two minutes, but I do not know what the procedure is.
Mrs Anne McIntosh (Shadow Minister, Environment & Transport; Vale of York, Conservative)
I would prefer to have the benefit of hearing the Minister speak to the amendment before I respond.
Mr Nigel Griffiths (Parliamentary Under-Secretary, Department of Trade and Industry; Edinburgh South, Labour)
The amendments relate to the adjustment of transmission charges for renewable generators and were tabled in response to Opposition amendments made in the other place. Amendment No. 199 is straightforward, as it simply brings the current drafting of the clause in line with parliamentary convention. The Government's original intention was
to commence the power under the clause using the negative procedure, which was believed to be adequate and appropriate for such a power. That was overturned by an Opposition amendment in the other place, which replaced ''negative'' with ''affirmative''. It is parliamentary convention that an order is subject to the negative procedure, but that the power to make an order is subject to the affirmative procedure.
Amendment No. 198 also seeks to tidy up the revised drafting in light of an Opposition amendment. Subsection (7) requires the Government to publish a draft of the scheme allowable under the clause, together with an impact assessment, and to consult on the scheme. The Opposition also inserted subsection (8), which requires the Secretary of State to publish an annual report on the ongoing costs of any scheme that is established. The amendment makes the legal effect clearer and clarifies the fact that the consultation on the power could take place before the section is
commenced. It also removes the requirement for the Secretary of State to publish an annual report on the ongoing costs of any scheme made under the power, which is believed to be unnecessarily bureaucratic.
The cost of any scheme to consumers should not change substantially from year to year, and will be made public via an impact assessment if a scheme is made. Any scheme will have a total duration of only five years, after which another order would need to be made to extend it or to create another scheme for a maximum of another five years. At that point, the costs and benefits of any extension or replacement scheme would be published. We publish many annual reports, and an annual report in this area would only increase bureaucracy while serving no purpose. The cost would also have to be met from the public purse. It is not necessary or justifiable.
It being twenty-five minutes past Eleven o'clock, The Chairman adjourned the Committee without Question put, pursuant to the Standing Order.
Adjourned till this day at half-past Two o'clock.