Clause 185 - Power to modify Petroleum Act 1998
Energy Bill [Lords]
3:30 pm

Mrs Anne McIntosh (Shadow Minister, Environment & Transport; Vale of York, Conservative)

My understanding is that we are being asked to modify, and therefore repeal, parts of the Petroleum Act 1998. This is an exciting part of the

Bill because it relates to the role of interconnectors, which are at an advanced and positive stage, in the provision of energy to this country. Perhaps the Minister would confirm what the role of interconnectors will be. Bearing in mind that we will increasingly become a net importer of energy over the coming years, interconnectors will have a great impact.

The regulatory impact assessment refers to the Norwegian interconnector and I understand that an interconnector agreement is also being negotiated with the Netherlands. Those are the two primary interconnector agreements. Will the Minister explain our position? The piping in of energy has implications for other aspects of energy policy, particularly the large combustion plant directive and the expected forthcoming announcement from the Department for Environment, Food and Rural Affairs. We need an assurance that energy being imported through those pipelines will be as clean as domestically produced energy.

We heard earlier about exposed overhead pylons, particularly in the north of Scotland. In my experience the elements can be just as perverse and destructive in the north of England—we had no electricity for three days over the new year. What protection is there for pipelines and interconnectors against the natural elements and a possible terrorist attack? The Committee must be aware that we will become increasingly dependent on interconnectors, such as those coming into the east of England. There is talk of French energy workers going on strike and, if they did, that would have a huge impact on the supply of energy, particularly to the south of England.

The clause is extremely welcome. It goes to the heart of the future of the Government's energy policy, particularly for electricity companies developing ventures with Norway and the Netherlands. I await the Minister's reply with anticipation.

Mr Nigel Griffiths (Parliamentary Under-Secretary, Department of Trade and Industry; Edinburgh South, Labour)

A number of existing agreements between the United Kingdom and other states relate to the production and/or conveyance of petroleum by pipeline to or from areas over which other states exercise sovereign rights. Most are with Norway, but there are also agreements with Ireland, the Netherlands and Belgium. In its present form, power under the Petroleum Act to make decisions in UK waters rests with the Secretary of State alone. As we move to import a greater proportion of our energy supplies, the new power in this clause will ensure that we are able to give full and appropriate effect to international agreements to further our aim of keeping energy supplies secure and reliable.

The clause provides the power for the Government to modify the Petroleum Act by Order in Council to give effect to international agreements relating in whole or part to the construction, operation, use, decommissioning, or abandonment of an offshore gas or oil installation or pipeline. The extension of the

powers is necessary to reflect the international scope of British energy supplies. I hope that the clause will stand part of the Bill.

Question put and agreed to.

Clause 185 ordered to stand part of the Bill.