My Lords, I will speak to the amendments in this group but I do not propose to detain the House for long. My views on hydrogen are relatively well known, and we had a good debate in Committee on Clauses 111 and 112. I support the previous speeches and the approaches taken to get the Government to think again about the need for these trials to be included in the Bill.
I welcome government Amendment 55, which would provide for regulations that would make some rules for the trials a “must”, rather than a “may”, which is at least an acceptance that this is a prerequisite. We need clear regulations setting out the rules that must be adopted and followed by anyone involved in these trials. But I do not think that goes far enough, because there are still a number of unaddressed issues. Therefore, I am quite sympathetic to the idea of simply removing this from the Bill and thinking again. I am also sympathetic to the proposal by the noble Lord, Lord Lennie, and the noble Baroness, Lady Blake, who have suggested that the Government ought to undertake a certain number of measures before they embark on a decision about these trials, including involving statutory agencies such as the Environment Agency in the trials, and the Health and Safety Executive on safety issues, so that we can properly assess their environmental impact—so that we actually are using them to trial something.
9.15 pm
At the moment, it feels very much as though this was an idea conceived of by two gas distribution companies that considered it a good idea, went to the local councils where they operate and said, “This is what we would like to do. Are you in?”. They said yes, so the companies went to Ofgem, got some money, talked to BEIS and went off on their merry way, forgetting to consult the people who live in the villages that they had identified to ask their opinion on this matter. In Committee I referred to them as
“the villages of the damned”,—[Official Report, 12/12/22; col. GC 95.]
which is colourful language, but it triggered conversations in Whitby in particular. I have had handwritten letters and emails from a number of residents thanking me for highlighting their plight. They very much felt that
they were being ignored, overridden and ridden roughshod over by the gas industry in their area, assuming that they would simply comply with the idea that they should be the guinea pigs, as they see themselves, in this trial.
As pointed out by the noble Baroness, Lady Sheehan, it is an unnecessary trial because 33 or 37 independent reports have already been written on the subject of whether 100% hydrogen should be used for home heating, and the overwhelming evidence from independent assessors is that it is not a good idea. It is not a good substitute for the current system and is inferior to much better options. The noble Lord, Lord Teverson, referenced the fact that we can use district heating, with heat loops, ground source heat pumps and individual air source heat pumps. All these, running off electricity or waste heat, would be infinitely more efficient than taking hydrogen, which will be a valuable and expensive carrier of energy—it is not an energy source in its own right—and using it to heat our homes.
For all those reasons, I am very sympathetic. I would like to hear from the Minister precisely what we are trialling here, other than the two gas distributing companies’ ability to do this. What are we seeking to find out? What answers are the Government seeking to make the decision about whether we should continue this idea? Some clarity about that would be helpful for us to understand why we need this provision.
It is very worrisome that the same powers used at the moment for entry into homes to fit prepayment meters are here being extended to the fitting of much more complex works in people’s homes. That power has been suspended by the courts in the UK because it has not been applied correctly—vulnerable customers were not being looked after in prepayment cases—so why do we think we should extend the power when they have failed to apply it properly for prepayment meters? It certainly feels wrong to be rushing to give them more powers at precisely this time.
My final point is about cost. I would like to hear from the Minister how much it is costing. We have tried asking this question in a number of ways. How much is being put aside by the department and Ofgem for these trials? If it is the rumoured £100,000 per household, that is a huge sum of money. Anybody providing any kind of electrification, energy efficiency or heat pumps would do wonders with that kind of money; that would be a far better trial and a better use of public money and our time and effort.
I fully support this group of amendments. I hope this is not the last we will hear of this debate; I am sure it will pass down to the other end. I am grateful that the regulations will now be on the basis of “must”, not “may”. I do not think that goes far enough, but I look forward to the Minister’s reply.