Climate Change Bill [HL]

I say at the outset that to the lay person—that is, us and people outside—the use of language in legislation can sometimes be misleading. The use of ““persons”” in this part of the Bill does not apply to individual citizens. Therefore, age, disability and so forth does not arise. I will explain that in a moment. The sub-paragraphs which Amendments Nos. 168F and G would remove are essential to the effective identification of organisations which would be required to participate in the proposed carbon reduction commitment—the CRC. The CRC will target the energy use from large non-energy-intensive private and public sector organisations. A briefing note that described in further detail the scope and intention of the scheme has already been circulated, but let me reiterate that the CRC may affect up to 5,000 organisations whose participation will be assessed on their electricity consumption from a 100 kilowatt metering system. The information-gathering power that Schedule 4 provides is necessary to begin identifying organisations covered by the scheme. The Government have recently consulted on an identification process that would require energy suppliers to provide a list of all 100 kilowatt metering systems in the UK, and the electricity consumption from those metering systems, for 2008. Amendment No. 168F would prevent an environmental authority accurately identifying potential CRC participants as it would remove the power to seek from electricity suppliers data concerning the users of particular types of meters; that is, users of a 100 kilowatt metering system, which the CRC will target. The process of identifying CRC participants also requires electricity users to collate their organisation’s total electricity consumption from 100 kilowatt metering systems and to confirm to the environmental authority whether it meets the inclusion threshold. Owing to the potential number of participants, and to give those organisations sufficient time to gather the necessary data, the Government intend to allow 12 months to administer the process. Paragraphs 2(b) and 2(c), which are the subject of Amendment No. 168F, are required to ensure that the information needed may be requested in the required timeframe for the introduction of the carbon reduction commitment. Removing the paragraphs would therefore hinder the effective and timely introduction of the CRC, the consequences of which are self-evident. Amendment No. 168G concerns the power to identify potential co-participants under the carbon reduction commitment. I will explain why the power is necessary. A key, basic objective of the carbon reduction commitment is to ensure that organisations as a whole are covered by the scheme, with the CRC obligations being placed on the highest UK parent organisation. This is to stimulate greater awareness of energy use emissions within an organisation’s senior management. Large businesses are often structured and restructured into groups, the constituent parts of which are separate legal entities or subsidiaries. To deal with this, and to ensure that we cover organisations in their entirety and therefore maximise emissions coverage, it is proposed under the CRC to capture business group structures. That also better explains one of the answers I gave earlier. It means that an organisation’s aggregate energy use will be used to determine whether it is a participant; that is, whether its aggregate energy use reaches the 6 megawatt threshold. In addition, certain exemptions ensure that there is no overlap with other existing schemes, including the EU Emissions Trading Scheme and the climate change agreements. It does not relate to energy use at individual sites, but to aggregate use of energy. That would cover the point that I made about hospitals. To ensure that the paragraphs in Schedule 4 are used for the specific purpose discussed of identifying potential CRC participants, a sunset clause associated with them provides that the majority of these powers cease to have effect by January 2011. By then, it is expected that regulations will be in place to govern the following phases of the scheme. Schedule 4 is intended solely to help with the implementation of the carbon reduction commitment, so we are talking about businesses with electricity bills of more than £500,000 a year. That is where the reference to persons is relevant. Schedule 4 is intended solely for that part of the CRC. Therefore, it could not go outside that power in relation to information about individual citizens in this country. I hope that I have reassured noble Lords.