Energy Bill [HL]

I support the thrust of these amendments and I am grateful that we are discussing the role of the local authorities this early. Both as movers and shakers and as facilitators and providers of a framework or catalyst for movement, they will be extremely important. In most parts of the country, opinion polls show that local authorities are relatively trusted. They are certainly trusted more than central government and energy supply companies. Whether the reasons for that are right or wrong, it is important that we mobilise that general good will. Local authorities have a role in a number of different respects and while it is true, as the noble Lord, Lord Dixon-Smith, has said, that the social housing stock has largely moved to housing associations, that is by no means totally the case. There will be many situations in which the local authority is still the landlord, although it may have a management company to run things, and it will have a responsibility for fairly substantial parts of the social housing stock and its maintenance and improvement. It is regrettably true that the early stages of the last Government’s decent homes programme did not have a very strong energy efficiency dimension. That improved as time went on, but an opportunity was missed; a substantial amount of expenditure went on upgrading social housing stock, but improved energy efficiency was not one of the prime objectives. Local authorities as landlords can take that on. Of course, there are also landlords of estates that are no longer a single form of tenure. Some of the occupants may well be tenants, but some of them may be owner-occupiers and some may be leaseholders or on a sublease, while some properties may be run by housing associations within the same estate. We have a complex and largely beneficial mix of types of housing on some of our larger estates, but the local authority is still the landlord and therefore in a strong position to try to persuade those on all forms of tenure to take advantage of the Green Deal, which probably individually they might not. It is wrong that some improvements on estates have applied only to one form of tenure, because the economies of scale, to which the noble Lord, Lord Teverson, referred in a wider dimension, apply whatever the form of tenure. The totality of the provision and use of energy in those estates means that economies of scale will be achieved if the majority of the residents participate. The local authority is by far the best body to ensure that that happens. Where housing associations are the landlord, of course they also have to have a role, but that is a slightly different role from what the amendment envisages for local authorities. Housing associations are no different from any other landlord that could effectively take advantage of this scheme and negotiate better terms, because they deal with substantial properties. It may be, however, that the Bill also needs to refer to housing associations in this regard. Of course, local authorities can go beyond their role as the landlord or as a body that has an indirect interest in the property to a role in which they can help to persuade landlords of private tenanted property—that will include a significant number of the fuel-poor, but not necessarily only them—and owner-occupiers to operate this scheme on a street-by-street, similar-property-to-similar-property basis, again achieving economies of scale. That role of local authorities is important. Some will be more prone to take up this cause and will be better at it than others, but that is the essence of devolution. Indeed, I assume that the essence of localism is that you will have different patterns in different areas. It is important that the Bill recognises that. As for subsection (3) in the amendment, it is true that the new ECO commitment will be largely focused on the fuel-poor, but local authorities will be able to negotiate—not only with the householder but also with the energy supply companies—different ways of incentivising the adoption of the Green Deal. As I said early on in our proceedings, we have to recognise that this is a voluntary thing. It is not something that the Government, the energy company or your landlord can impose on you; take-up is voluntary. That may require some incentives. As the noble Lord, Lord Teverson, said, it is already the case in a number of areas that, by dealing with the energy supplier—British Gas, mostly—local authorities have already provided an incentive, so presumably they already have the power to do so. Subsection (3) suggests that we need to legislate for the link with the new energy company obligation, but I believe that local authorities already have the power to do this. If, by agreement with the energy supply companies, they can reach an accommodation that delivers the Green Deal on a wider scale, they certainly should not be inhibited from so doing. Amendment 12 is important in that it recognises these proactive and direct roles of local authorities, so I hope that the Government, if not agreeing with every word of it, will accept the general thrust.