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Energy Bill [Lords] - Sitting 9
13 June 2023
Type
Public Bill Committee
At a Glance
Issue Summary
The statement addresses concerns raised about a potential U-turn on the government's plan to levy household energy bills for hydrogen gas sector support. The statement addresses concerns about national security risks posed by certain vendors of appliances used in smart energy networks, specifically mentioning Kaifa Technology and its potential data security issues. The statement addresses concerns regarding the security and resilience of load control devices in the energy sector. The statement addresses concerns about Clause 204 of the Energy Bill [Lords], which was added to improve energy performance of buildings, aiming to deliver net zero commitments. The statement discusses clause 204 of the Energy Bill [Lords], which requires the Secretary of State to produce an action plan for achieving energy efficiency targets. The statement discusses the importance of including clause 204 in the Energy Bill to ensure a national war mobilisation for improving energy efficiency and reducing carbon emissions. The statement discusses the Energy Bill [Lords] clause related to energy efficiency targets and future homes standard. The statement discusses new clauses aimed at improving energy performance standards in privately rented properties. The statement discusses amendments to clauses in the Energy Bill related to energy performance regulations for buildings and private rented properties. The statement discusses the need for stricter energy efficiency standards in the private rented sector and proposes new clauses to implement measures from a previous consultation and improve EPC ratings with consideration of two-way energy systems. The statement addresses concerns about over-legislation and its potential negative impacts on landlords, tenants, and the private rented sector regarding energy efficiency measures proposed in the Energy Bill. The statement discusses amendments and updates to the Energy Savings Opportunity Scheme (ESOS) under the new Energy Bill. Caroline Nokes discusses clauses 219 and 220 of the Energy Bill, focusing on the Secretary of State's powers regarding scheme administrators. The discussion is about the formulation and clarity of a specific subsection in the Energy Bill, particularly regarding the Secretary of State's ability to revoke directions given under the section.
Action Requested
As Chair, Caroline Nokes confirms that it is open to the Government to table further amendments in later stages of the Bill and indicates no immediate action beyond this possibility.
Key Facts
- The Secretary of State signaled a potential change in the government's plan regarding levies on household energy bills for hydrogen gas sector support.
- Caroline Nokes cast the deciding vote on an amendment related to this issue previously.
- It is open to the Government to table further amendments in later stages of the Bill.
- Amendments 160 and 161 aim to regulate or prohibit load control by high-risk vendors.
- High-risk vendors are defined as those posing potential or actual security risks to energy networks.
- New clause 40 sets out exceptional circumstances allowing the Government to invoke these measures.
- Kaifa Technology, a Chinese company with close ties to China Electronics Corporation, is highlighted due to US sanctions and data security concerns.
- Government has spent considerable time preparing means to manage risks associated with hostile actors in the energy system.
- Load controllers would be required to report incidents that disrupt service continuity under the NIS regulations.
- The Electric Vehicles (Smart Charge Points) Regulations 2021 require most private charge points for domestic and workplace use to meet minimum device-level cyber-security requirements.
- Clause 199 sets out how the Secretary of State may modify conditions of licences granted under the Electricity Act 1989 for load control purposes.
- The Government do not consider Clause 204 effective in improving energy performance of buildings.
- The heat and buildings strategy was published in autumn 2021, aiming to reduce emissions from buildings.
- As of now, 47% of homes in England have reached EPC band C, up from 14% in 2010.
- A consultation on upgrading houses will be published by the Government in 2023.
- The future homes standard aims to be introduced by 2025 with a technical consultation planned for 2023.
- The clause mandates an action plan for the Secretary of State to achieve targets such as 100% installation of relevant heating appliances by 2035 and EPC band C homes by 2035.
- More than 13 million homes in England are below a C rating on the energy performance certificate standard, accounting for around 20% of total UK carbon emissions.
- Insulation rates fell by 92% after energy efficiency programmes were cut in 2013.
- Labour's plan targets 19 million homes.
- Almost 9,000 neighbourhoods in England and Wales have very low incomes but higher than average energy costs due to poor insulation.
- The cost of the Labour plan is estimated at £6 billion per year.
- The clause was inserted by Cross-Bench and Liberal Democrat peers in the House of Lords.
- After 13 years of Conservative Government, 47% of UK homes have an EPC grading; target is to exceed 50% soon.
- The government has set out a heat and buildings strategy and announced further measures in the net zero growth plan.
- The new clauses aim to amend regulations requiring all tenancies in England and Wales to have an energy performance certificate (EPC) of at least Band C by December 31, 2028.
- Exemptions are provided for occupiers who refuse permission or where technical feasibility is lacking.
- Local Authorities will be able to inspect properties upon request.
- Financial penalties for non-compliance can reach £30,000 per property and per breach.
- Clause 205 provides power to amend existing Energy Performance of Buildings Regulations.
- Clause 206 enables changes to regulations regarding new premises, including construction and adaptation.
- New clauses aim to require all tenancies to have an EPC of at least Band C by December 31, 2028.
- The investment cap for landlords is proposed to be raised from £3,500 to £10,000.
- New clause 41 aims to enforce consultation proposals into law.
- Private rented sector has the worst energy efficiency record.
- Landlords should not be allowed to rent out properties with low EPC ratings in the future.
- New clause 42 would ensure EPCs reflect two-way energy systems within buildings.
- The Secretary of State must conduct a review on new technologies within 12 months after the Act is passed.
- The Government are still consulting on the report.
- Subsection (3)(a) of new clause 41 would enable Local Authorities to inspect properties without permission from landlords and tenants at an agreed time.
- New clause 42(1) mandates a review of the 'Improving Energy Performance Certificates: action plan' within 12 months of the Act being passed.
- ESOS mandates energy audits every four years for large undertakings covering buildings, transport, and industrial processes.
- The existing scheme's net benefit is estimated at £1.6 billion.
- Clause 209 covers four core options to amend ESOS and sets out general provisions for regulations.
- Clause 219 provides the Secretary of State with a power to give directions to a scheme administrator.
- Clause 220 enables the Secretary of State to provide or arrange for financial assistance to scheme administrators and ESOS participants.
- Subsection (2) of clause 219 includes a power to vary or revoke directions given by the Secretary of State.
- The discussion centres on subsections (1), (2), and (3) within a section of the Energy Bill.
- Section 51 of the Climate Change Act 2008 provides precedent for comparable provisions allowing revocation by the Secretary of State.
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