Energy Bill: Another constitutional battleground?

On Monday the Government’s Energy Bill started its legislative passage through the Commons after an elongated and scrappy journey through the Lords. Its constant changing led one peer to label it as “liquid legislation”.

Opposition peers threw out the Government’s clause aiming to close the Renewables Obligation to onshore wind farms a year earlier than originally planned. Despite Energy Minister Lord Bourne citing the Salisbury convention during the debate, Labour’s former shadow energy spokesperson Baroness Worthington was able to convince the Chamber that the Conservative’s manifesto commitment to “end new public subsidies” was sufficiently vague for Salisbury not to apply.

The opposition also managed to alter the primary objectives of the newly created Oil and Gas Authority (OGA) to include carbon capture and storage (CCS) and decommissioning.

Needless to say the Government has pledged to overturn both of these Amendments (and another relating to the calculation of the UK’s carbon budget) in the Commons where they do have a majority. However with no Parliament Act available to them to force the legislation though (the Bill having started in the Lords) and Labour peers saying they would overturn the onshore wind amendment again it seems inevitable that there will have to be some compromise for the legislation to pass.

During the second reading, Government ministers were steadfast in their opposition to both amendments so concessions may have to be found elsewhere.

Despite the Prime Minister’s recent comment that CCS was not working, both Amber Rudd and Lord Bourne have said publically that the technology did have a future. With Labour promising to table an amendment that supported “a comprehensive national strategy” for CCS perhaps the Lords could be placated with sufficient legal support for CCS elsewhere in the Bill.   

Similarly the opposition may be prepared to trade in early closure of the subsidy scheme if the Government allowed communities to vote in favour of onshore wind projects where there was local support for them and by reinstating the right of local communities to decide on fracking licences. These suggestions received support from both sides of the House during the second reading. 

The Government is keen to see this legislation pass as quickly as possible and they have tabled a motion allowing Report Stage, Third Reading and a grand committee stage for the EVEL designated clause to take place on the same day. By the end of February the Lords willingness to block Government legislation could well be tested again.

To learn more about the Energy Bill and track its progress, contact Dods Monitoring energy specialist Rob Micklewright at rob.micklewright@dods.co.ukor on 0207 593 5700.