Energy Bill [HL]

The noble Lord, Lord Whitty, may be pleased to hear that when I read through the Bill I put a question mark against the reference to a fee in subsection (5). Like him, I would like to know what this is about. I would envisage, particularly if there is a change of ownership, that a new owner might prefer and be prepared to pay off the debt that is on the house so as to be shot of that. I would be very distressed if that were going to attract a fee. Like the noble Lord, Lord Whitty, I am not clear what this fee refers to and I look forward to hearing what my noble friend has to say about that. Having said that, I think that if one is entering into an agreement that may well last 25 years, it is asking too much to expect any provider to offer a loan at a fixed rate of interest over the whole of the 25 years. The noble Lord, Lord Whitty, did realise that that might be difficult for the Government to accept. One inevitable consequence is that the interest rate on the loan would have to be higher than it might otherwise be. He knows much more about this than I do, but you can have tracker bonds that will follow the rate of interest, and obviously, if interest rates are low, you will start very low. However, you are actually recognising that if interest rates go up—and whether we will face this later this year remains to be seen—inevitably then the rate on the loan goes up. It will be for the provider to propose a rate of interest for the loan and for the improver to agree. Simply starting from the proposition that there would have to be a fixed rate over the whole period may, I think, be going, as the noble Lord indicated, a bit too far.