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 do not believe that that would be the effect, but if the hon. Gentleman will bear with me, I shall try to come to that point in a minute. I also want to explain a difficulty with the requirement to buy back electricity at the market rate. Although it seems a good idea, there may be circumstances in which it would be uneconomic to make such a requirement of a supplier, because the extra arrangements would create a large extra cost for the electricity company.
In addition, as was suggested to me by at least one person who contacted me, who appeared to be well informed, there are already some circumstances in which energy companies buy electricity at prices above the market rate. The individual who spoke to me was concerned that if my Bill came into effect, it would make his own arrangements uneconomic, because his company would no longer be able to buy back electricity at a rate higher than the market rate. For all those reasons, I accepted that the current wording would have to be changed.
The Government put it to me that the onus should really shift to the power companies; they should come forward with proposals to ensure maximum take-up of the opportunity for domestic consumers to produce electricity for microgeneration. Some power companies do that anyway. I understand from my discussions with the Government that they are keen for suppliers to develop a scheme on a voluntary basis. My proposed changes would give the Secretary of State back-up powers to require a scheme to be set up if the industry does not come forward with a scheme voluntarily within a certain time frame. I hope that the Minister can say a little more about how he envisages the relationship between a voluntary scheme and the opportunity to impose a scheme in due course, if the Bill becomes law.