Clause 8 - Microgeneration and access to green energy certificates

Part of Climate Change and Sustainable Energy Bill – in a Public Bill Committee am 4:15 pm ar 25 Ionawr 2006.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Mark Lazarowicz Mark Lazarowicz Llafur, Edinburgh North and Leith 4:15, 25 Ionawr 2006

The clause and proposed new clause deal with microgeneration and access to green energy certificates. I invite the Committee to reject clause 8 and, in due course, add new clause 10 to the Bill.

As we have discussed, access to renewables obligation certificates is important if microgeneration is to become a viable technology for many consumers. The ability to access the certificate and cash in the financial value that it provides can be make or break for an individual who is deciding whether investing in microgeneration makes sense in their circumstances. That is why clause 8 was drafted as it is. It has been put to me, and I see the force of the argument, that the proposals in clause 8 have unpredictable implications in that the likely impact on various public authorities is unclear and might have undesirable consequences in relation to microgeneration and consumer interest.

To ensure that microgeneration and the interests of microgenerators are put at the centre of the regulator’s decision-making process and activities, which affect how consumers access renewables obligation certificates, the new clause would deliver a statutory link between Ofgem and microgeneration, which would require the regulator to demonstrate a specific regard for microgeneration. That would send a clear message to the authority about the importance of microgeneration without upsetting the whole scheme of regulation or the relationship between Government, Parliament and the regulator.

The Bill as drafted refers to several green energy certificates: levy exemption certificates, renewables obligation certificates and renewable electricity guarantee of origin certificates—LECs, ROCs and REGOs as they are known in the business. I understand that the Government will, in due course, introduce proposals that will make it easier for microgenerators to obtain ROCs and will examine the barriers in relation to REGOs and LECs under the microgeneration strategy. On the basis of those assurances, which I am sure that the Minister will say something about, I am happy to proceed in the way in which I have indicated. I invite the Committee to support new clause 10 in place of clause 8.