Great British Energy Bill

Report (Continued)

Clause 5: Strategic priorities and plans

Amendment 21

21: Clause 5, page 3, line 8, at end insert— “(1A) The Secretary of State must comply with subsection (1) within the period of six months beginning with the day on which this Act comes into force.”Member’s explanatory statement This amendment requires the Secretary of State to prepare a statement of strategic priorities for Great British Energy within the period of six months beginning with the day on which this Act comes into force.

My Lords, in moving Amendment 21, I acknowledge and thank the noble Earl, Lord Russell, for putting his name to it. It requires the Secretary of State to prepare a statement of strategic priorities within a period of six months from the day on which the Act comes into force.

As noble Lords will know, we had extensive discussion about the statement of strategic priorities in Committee, and I am glad to say that we have had a lot of constructive discussion between Committee and Report. In recognition of the concerns raised on the length of time that Great British Energy could be operating without a set of strategic priorities, I am glad to bring forward this amendment, which clarifies the length of time in which the first statement of strategic priorities should be prepared.

In addition to this amendment, I make a commitment at the Dispatch Box that the Government will publish a Written Ministerial Statement when the first statement of strategic priorities is published, so that this House and the other place will be informed. I hope that noble Lords will support this amendment. I beg to move.

My Lords, briefly, I thank the Minister for tabling Amendment 21. It is identical to an amendment I tabled in Committee, and introduces a time limit of six months for the publication of the statement of strategic priorities. Given the importance of that statement, as we have had many discussions around, and that it is the only place where the aims for GBE will be set out, it is clearly essential that the publication should not be delayed. I am very grateful to the Minister for accepting the principle.

I was going to ask the Minister whether the statement will be accompanied by an impact statement or assessment, or whether the business cases and spending reviews will be published. He pre-empted that on the first group, and I am grateful for his positive answers to those questions.

My Lords, I thank the Minister and his Bill team for listening and constructively engaging with the many discussions that we have had on the issue of Great British Energy’s statement of strategic priorities and for bringing forward this helpful amendment.

I will be brief, as we have had a lot of discussion on this, particularly in Committee. Our position is that we support the intentions of the Bill and recognise that the Government are acting at speed to establish Great British Energy. However, we have always said that the Bill is too short for its own good. We recognise the difficult position that the Minister finds himself in. It is for Great British Energy, as an independent organisation, to write its own strategic priorities, as long as they are consistent with the objects set out in Clause 3. Great British Energy obviously needs to be established in order to write the strategic priorities, and discussions are required with the devolved Administrations.

Against these needs, we as parliamentarians were being asked to approve the Bill with no sight of the strategic priorities prior to the Bill being passed, or even after it is passed and the strategic priorities have been finalised. This was an issue that the Constitution Committee rightly highlighted as an area of concern. To us, it felt a little like we were being asked to sign a blank check, and your Lordships were rightly nervous about the implicit ask in the Bill as it was drafted.

From these Benches, we have consistently argued for progress on these matters and for the reaching of constructive compromise. Compromise needs to rightly balance the actions and operational independence of Great British Energy and, at the same time, the justified right of parliamentary scrutiny and oversight of the strategic priorities. Is this amendment absolutely perfect? No. Does it do a good and worthwhile job of balancing these competing needs and moving the issue forward? Yes, it very much does. I welcome the words the Minister has spoken from the Dispatch Box about a Written Ministerial Statement. This is an essential compromise, and I thank the Minister for this good progress.

My Lords, I will speak in support of the amendment in my name and that in the name of my noble friend Lord Trenchard. They represent an important step in ensuring that the development and operation of Great British Energy are aligned with the national interests and strategic needs of our energy sector.

Amendment 21, put forward by the Minister, ensures that the Secretary of State must prepare the statement of strategic priorities for GBE within six months of the passing of the Bill. This timely approach is crucial, as it establishes an early foundation for the strategic direction of Great British Energy, permitting the organisation to operate with clarity and purpose from the outset.

The inclusion of Amendment 26 in my name is equally important. It requires that the statement of strategic priorities must specifically address the development of supply chains in the United Kingdom. This is vital to ensure that the Great British Energy objectives are not only met but integrated into the broader goal of strengthening domestic industries and fostering economic resilience within our own borders. The definition of supply chains in this amendment reinforces the need for a comprehensive and interconnected approach to the creation and sale of commodities relating to Great British Energy’s work.

Finally, Amendment 33, proposed by my noble friend Lord Trenchard, brings an added layer of scrutiny and collaboration by mandating consultation with Great British Nuclear and the National Wealth Fund before the publication of the statement of strategic priorities. This amendment will ensure that Great British Energy’s strategies are developed in consultation with relevant stakeholders, thereby promoting a more cohesive and informed approach to energy policy.

These amendments collectively reflect our commitment to a strong, secure and sustainable energy future. I support them, and I encourage the Minister to do the same.

My Lords, I wish to speak to Amendment 33, which is somewhat misplaced in this group. I have been asked by the noble Viscount, Lord Trenchard—

My Lords, the noble Viscount, Lord Trenchard, is not here to move Amendment 33.

I have been asked to speak on his behalf. Is that liable? That was his request.

Yes.

I will be brief.

The noble Viscount declares an interest as a member of the advisory board of Penultimate Power. In speaking to his amendment, I will rely on text that he has provided. He is concerned that Great British Energy might be devoted to the pursuit of the immediate agenda of NESO—the National Energy System Operator —to the detriment of the nuclear agenda, which has a longer time scale. The recent NESO documents have concentrated on wind and solar power, alongside the capture and storage of carbon dioxide emitted by standby stations, but they barely mention nuclear power.

The noble Viscount, Lord Trenchard, acknowledges that the Minister declared that it would be within the competence of Great British Energy to invest in nuclear power and to do the other things in relation to nuclear. Here I must use the own words of the noble Viscount, Lord Trenchard:

“I’m afraid that on reflection I don’t think that was clear enough. The Minister’s mention of GBN suggests that its continuation restricts the scope of GBE in relation to nuclear”.

He goes on to say:

“The Minister seemed to be saying that GBE could always invest in a nuclear power project; but that this should fall primarily within the scope of GBN. The Energy Act 2023 specifies that GBN’s objectives are to facilitate nuclear energy projects. However, it is silent on the provision of financial assistance for such projects”.

The noble Viscount, Lord Trenchard, observes that, whereas Clause 4 of the Bill enables the Secretary of State to provide financial assistance to clean energy projects—which has been quantified at £8.3 billion over the course of this Parliament—there is no indication of the share that might be devoted to nuclear power. However, nuclear must form the backbone of our energy system and, in order to develop the supply chain and to assemble the skilled workforce, we need to get started now.

According to this opinion, the parallel existence of GBN and GBE confuses the issue, which makes it necessary that the GBE Bill should specify that clean energy indicates nuclear. That has already been the burden of Amendment 10. The noble Viscount, Lord Trenchard, asks the Minister to clarify the role of the Infrastructure Bank, which was established by the Act of 2023 and which has become the National Wealth Fund. He is concerned that its objectives should include support for nuclear.

Finally, the noble Viscount, Lord Trenchard, makes a revealing observation that 18.3% of our energy supply on the 8 February was imported from abroad and that it contained a substantial amount of power generated by French nuclear power stations. This dwarfed the contribution of wind, at 7.6%, and of our own nuclear fleet, which amounted to 10.2% of the total. I thank noble Lords for their indulgence in allowing me to speak on his behalf.

I apologise for intervening. For future reference, moving an amendment on behalf of another Member is permissible, but reading a speech out on behalf of another Member is not, according to the guide.