Energy Bill

Government department: Business, Enterprise and Regulatory Reform

Liberal Democrat Spokesperson in the Commons: Steve Webb
Liberal Democrat Spokesperson in the Lords: Lord Redesdale

Government proposals 
· Offshore gas supply infrastructure - strengthening the regulatory framework to enable private sector investment to help maintain reliable supplies of gas given we expect to rely on imports to meet up to 80% of demand by 2020.
· Carbon Capture and Storage (CCS) - creating a regulatory framework to enable private sector investment in CCS projects.
· Renewables - strengthening the Renewables Obligation to drive greater and more rapid deployment of renewables in the UK.
· Nuclear waste and decommissioning financing (on a contingent basis subject to the current consultation) – if the Government decide it is in the public interest to allow private sector investment in new nuclear power stations, the bill will create a framework that will help protect the taxpayer by requiring owners or operators of a new nuclear power station to make financial provisions to cover the full decommissioning costs and their full share of waste management costs.

Liberal Democrat response
This Bill has the hallmarks of another monumental let down. The Government should commit Britain to a carbon neutral future, with renewable energy playing a key role. Unfortunately its fixation with nuclear power means we won’t get a proper debate on anything.

The nuclear consultation was always a sham.  Ministers claimed to have an open mind on nuclear power, but they were obviously committed to building new nuclear power stations before the consultation even began.  The Liberal Democrats remain opposed to nuclear power – not on principle, but on judgement.  For example, the Government has still not addressed the legacy they leave to future generations - radioactive waste that will remain dangerous for thousands of years.

We are concerned that the Government’s background note on the Bill has dropped any mention of action to tackle fuel poverty. We want to see measures which cut fuel poverty and which provide utility companies with real incentives to ensure comprehensive energy efficiency improvements in our homes. It is an outrage that the UK’s average household energy bills are currently £385 a year more than in chilly Sweden.

The Government are promising to improve the lot of renewables.  But look at their track record.  It is doubtful we will meet the 10% renewables target by 2010, a direct consequence of Labour not being supportive enough of our renewables.  The Government are looking to set a framework for carbon capture and storage.  This should already have happened.  We should be looking to be market leaders in low-carbon technologies.

The Liberal Democrate have welcomed government amendments to set up a frame work for the introduction of smart meters, yet hope that these amendments are more specific in terms of their detail and commit to a timetable within 10 years for the eventual roll out of smart meters accross the country.

Our position is set out in Zero Carbon Britain (see below), which sets out our proposals to meet our energy needs in an environmentally friendly manner.

Liberal Democrats in the Lords have led the way on tabling key amendments to the Bill, including giving priority access to renewable energy in the national grid, changing the remit of OFGEM, the energy regulator, so that its principal objective is to deliver a secure and sustainable energy system operating within emission limits and in accordance with the Climate Change Bill and provision for a greenhouse gases emissions performance standard to be set.

We have also supported attempts for energy suppliers to introduce a renewable energy tariff (feed-in tariffs) for a specified fixed period to specific producers of renewable energy.


Applicability (e.g. England)
The provisions in this Bill are a mixture of devolved and reserved matters. The Government will work closely with the devolved administrations on the responsibilities they have in this area.

Further Information
Zero Carbon Britain (Lib Dem policy paper)
Government note on the Bill
Commons Second Reading
Progress of the Bill

(NB. Information on the stages a bill goes through to become an act of Parliament is available by following this link.)

Last updated 05/08/08