I shall speak also to Amendments 54 and 62, tabled in my name and that of my noble friend Lord Lennie. Clauses 66 and 67 set out a series of powers to raise a levy or levies to fund the hydrogen business model. Detailed design of these will be subject to further consultation, which I hope and assume will take place thoroughly and may indeed reach similar conclusions to those put forward in this group of amendments.
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We know that this could be done through payment to a hydrogen levy administrator, paid by counterparties of hydrogen production primarily, as well as those of carbon dioxide transport and storage in cases where shortfalls in licensees’ allowed revenue are caused by low-carbon hydrogen producers. Subsection (2) also allows for payments to the administrator for the purpose of meeting other costs. These payments, as written, can be taken from “relevant market participants”, which are defined in subsection (8) as gas suppliers, electricity suppliers and gas shippers.
This is where our Amendments 52 and 54, and others in this group, seek to make changes. These amendments mean that the Secretary of State can put a levy on gas shippers, but cannot put one on gas or electricity suppliers, thus preventing responsibility for the levies falling on households. As per Clause 66, relevant market participants can be required to pay levies via revenue support regulations. This amendment quite simply means that levies are to be put on shippers rather than suppliers, making it more difficult for these costs to be passed directly to households and therefore limiting the impact on bills. I am aware that the emphasis in these amendments is on pricing and protecting the consumer. Surely, in the current climate we need to make sure we take every opportunity to make affordability one of our primary considerations. I support the need to protect the environment, as highlighted in the amendments tabled by the noble Baroness, Lady Worthington, which is a very important consideration.
Where shippers have above what is in reserve provision, Amendment 62 guarantees that the difference should be restored directly to customers from shippers, in contrast to how the LCCC works with retailers and customers at present. Under circumstances where sums are apportioned under Clause 76, held by the counterparty, the amendment ensures that any leftover money goes directly back to energy supply customers—the people who supplied them in the first place—rather than being held back.
I look forward very much to the discussion on the amendments laid by the noble Lord, Lord Teverson, and the noble Baroness, Lady Worthington. I believe this is an area where the Minister could signify a willingness to move, given that our priority, as I have said, must be to work in any way possible to reduce the impact on the bills of people who are under such enormous stress and strain at the moment. I beg to move.