Motion on Amendment 2

Energy Bill [HL] - Commons Amendments – in the House of Lords at 4:30 pm on 12 September 2023.

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Lord Callanan:

Moved by Lord Callanan

That the House do agree with the Commons in their Amendment 2.

2: Clause 2, page 4, line 14, after “repeals” insert “or revocations”

Photo of Lord Callanan Lord Callanan Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

My Lords, with the leave of the House, I will speak also to the other amendments in this group. The Government introduced amendments on Report in the Commons to commence further provisions of the Bill on Royal Assent. These amendments will ensure that key secondary legislation can progress at the pace required for the department’s policy objectives to be met.

The remaining government amendments are technical and minor in nature. They relate to existing policies already in the Bill. I wrote to noble Lords about these amendments, setting out what they do and our intentions behind them. Therefore, the House will forgive me if I do not speak to every amendment in detail; I will instead recap the key amendments we sought to make in the other place.

In general, the amendments have been made to improve the clarity, precision and consistency of the Bill. In Part 1, we have amended the definition of a carbon capture entity to include direct air capture projects, with the intention of supporting such projects that bolster our greenhouse gas removals efforts, as set out in the net zero strategy.

In Part 2, we have tabled amendments to the definitions of hydrogen production revenue support contract and carbon capture revenue support contract so that, while contracts can be offered only to eligible low-carbon hydrogen producers and eligible carbon capture entities, after the point of contract signature it is for the contracts to set the parameters of the ongoing support that they provide. This will help ensure that projects and their investors are clear on the terms of their support. That should inspire confidence in this new regime.

We have amended Part 5, on the independent system operator and planner, to limit the breadth of its efficiency and economy objective and clarify the definitions of ISOP functions in the Bill. These changes leave the ISOP with a mission that is more clearly defined but also flexible enough to accommodate wider developments in energy regulation. They should also help to reduce the risk of the ISOP being distracted from its core purposes and potentially incurring unnecessary costs to customers.

Part 12 on the offshore wind environmental improvement package has been amended to make clear that the clauses apply to all infrastructure in the UK marine area used or intended for use in connection with an offshore wind farm and in connection with the conveyance of electricity generated by such wind farms. Further amendments have been made on the energy performance of premises, petroleum production licensing, the disposal of radioactive waste and compensation for nuclear damage, as well as other minor drafting and clarificatory amendments. I hope noble Lords will agree that they are necessary amendments that improve the Bill. I beg to move.

Motion on Amendment 2 agreed.