Clause 7 - Sale of electricity produced by domestic microgeneration
Climate Change and Sustainable Energy Bill
4:00 pm
Mark Lazarowicz (Edinburgh North and Leith, Labour)
I invite the Committee not to allow the existing clause 7 to stand part but to replace it with new clauses 8 and 9, and to agree to amendment No. 28, a consequential amendment that is also in my name.
The clause would require the Secretary of State to establish a scheme enabling electricity produced by domestic microgeneration to be sold. I have had many discussions with those advising me on the Bill about the clause and I understand that the Government have raised a number of questions about it, in some of which I can see some merit. Even where I cannot see any merit, I accept that the changes must be made if we are to produce a coherent measure.
I understand that the Government believe that the direct requirement in the clause would not be consistent with their approach to intervention in the energy market, which I recognise as the overall Government policy on the issue. In any event I accept that, as there are specific difficulties with the wording of the clause, it is appropriate for changes to be made.
I accept that there are a number of difficulties with the requirement in the clause that a supplier buy electricity at the market rate. First, it is difficult to account for the range of different ways in which consumers might choose to supply the market. Because this is a growing technology, in some areas it would be difficult to specify what the market was and what was the correct rate to apply. There have been discussions about the appropriate wording. It has been suggested that a “fair” rate would be better than a “market” rate, but that again leads to potential difficulties with definitions.