Energy Bill [HL]

My Lords, this group of amendments addresses the role of local authorities in relation to the Green Deal. We are very grateful to noble Lords for laying the amendments. We want and expect local authorities to exploit the opportunities that the Green Deal presents to them and to their residents. As the noble Lord, Lord Teverson, says, local authorities are indeed natural allies in this—as are housing associations, as the noble Lords, Lord Moynihan, Lord Dixon-Smith and Lord Whitty, observed. I shall speak to Amendment 12 first. Section 2 of the Local Government Act 2000 already provides local authorities with a power to take any steps which they consider are likely to promote or improve the economic, social or environmental well-being of their local community. Local authorities are empowered to undertake a wide range of activities for the benefit of their local area and to improve the quality of life of local residents, businesses and those who commute to or visit the area. So certainly this could include local energy efficiency initiatives. Moreover, the Green Deal will provide strong natural incentives and varied opportunities for councils to engage with and deliver it, in particular, the incentive of attracting new and additional sources of finance into their local areas to benefit local residents. Councils may, for example, choose to become Green Deal providers themselves operating on a commercial basis. Others may want to form partnerships with Green Deal providers working with them to ensure the widest possible availability and take-up of offers in their community. As trusted local brokers with knowledge of their housing stock, local authorities will be attractive partners for Green Deal providers. They will therefore be in a good position to negotiate advantageous programmes for their residents—for example, to deliver economies of scale and incentives, as the noble Lords, Lord Teverson and Lord Whitty, noted. Many local authorities are currently working with the energy companies and others to deliver the community energy saving programme, which specifically targets whole-house, community-wide delivery of energy efficiency measures. We are carrying out a formal evaluation of this programme, which will complete in March of this year. That will therefore feed in. Anecdotal evidence to date suggests that CESP is delivering projects ranging from 100 to 1,200 properties, and because of this is achieving significant economies of scale. This experience is informing and will continue to inform the development of the Green Deal. As the noble Lord, Lord Teverson, notes, a number of local authorities already use council tax rebates as incentives. British Gas has worked with around 70 councils to offer a rebate on council tax bills for households who take up their CERT cavity wall or loft insulation offers. The rebate is funded by British Gas, although in some instances the council also match-fund. Local authorities will also often contribute resources for marketing, such as council-branded leaflets. Rebates, which are limited to one per household, vary from £50 up to £125 depending on the council involved. However, I note the comments of the noble Lord, Lord Jenkin, on CERT and fuel poverty. We fully expect local authorities to build on this experience and work with Green Deal providers and others to deliver schemes to whole communities. We are working closely with local authorities to understand and develop the roles that they might play in delivering and promoting the Green Deal and how to disseminate good practice, including thinking about how best to enable and incentivise such methods in delivering the Green Deal Moving on to Amendment 31, the well-being power in the Local Government Act 2000 could already enable local authorities to propose, plan and deliver energy efficiency measures and programmes for their communities, and we will explore this further with CLG Ministers. Indeed, many councils already have a strong track record in delivering in this area, working in partnership with energy companies and others. As I have noted, the Green Deal will further incentivise this, and we are aware of a number of councils which are already considering how they might deliver the Green Deal. The noble Baroness, Lady Maddock, has a long track record in this area, and I note her concern to ensure that the take-up of this scheme is as wide as possible, building on the work of the Home Energy Conservation Act. This Government fully support local residents in having a strong influence over their local council. I note that that principle underpins this amendment. My right honourable friend the Secretary of State for Communities and Local Government has brought forward the Localism Bill to provide councils and local residents with a greater ability to deliver local priorities without necessarily having Whitehall direction on what they must do or how they should deliver locally. For example, the general power of competence proposed in the Localism Bill is based on a fundamental assumption that local authorities should be free to act in the interests of their local communities, except where restricted by statutory limitations or restrictions. We believe that freeing local councils to act and working to create the right incentives is the way to ensure that local authorities and local residents take up the opportunities presented by the Green Deal and the future energy company obligation. While we are sympathetic to these proposals in terms of local government involvement in the Green Deal, incentives to use the Green Deal, and encouraging take-up, all of which are extremely important, we hope that the noble Lord will withdraw his amendment. But I hope that noble Lords will be reassured by our continuing exploration of the role of local authorities in this area and by our recognition of how important they are in this regard, and how best to encourage take-up of this scheme.