Work of the Committee in Session 2008-09 - Energy and Climate Change Contents

 

2  Core tasks

13. In 2002 the Liaison Committee set common objectives - or 'core tasks' for Select Committees. This is our first Sessional Report, and provides an account of our work to meet the core tasks set out by the Liaison Committee[3].

14. The core tasks are split into four separate objectives:

Objective A: To examine and comment on the policy of the Department

Objective B: To examine the expenditure of the Department

Objective C: To examine the administration of the Department

Objective D: to assist the House in debate and decision

The Committees work in relation to the core tasks is detailed in table 3.

Table 3: Work of the Committee in relation to Core tasks

Inquiries	Government and EU policy proposals	Examination of emerging policies and of deficiencies	Draft Bills	Decisions and documents from DECC	Expenditure of DECC and Associated bodies	Public Service Agreements	Work of DECC's associated public bodies	Major appointments	Implementation of legislation and major policy initiatives	Informing debates in the House	Evidence from Ministers
Energy prices in 2009 and future investment in electricity generating capacity		X		X
The work of DECC	X	X		X	X		X	X	X		X
The work of the Committee on Climate Change		X		X	X		X		X
UK offshore oil and gas		X		X			X			X	X
The future of Britain's electricity networks	X	X		X			X		X		X
Low carbon technologies in a green economy		X		X			X		X		X
Severn estuary tidal power projects	X	X		X							X
DECC Annual Report and Resource Accounts	X	X		X	X	X	X		X		X
National Policy Statements *	X	X		X					X		X

*The energy National Policy Statement inquiry was announced at end of Session 2008-09, and is expected to cover the core tasks indicated.

Policy

UK OFFSHORE OIL AND GAS

15. The inquiry into UK offshore oil and gas commenced in March 2009 and scrutinised the Government's policy on domestic oil and gas in relation to: security of supply; the current fiscal and regulatory regime; the environmental impact of the industry; and a range of related matters. Table 4 shows the oral evidence programme for the inquiry.

Table 4: UK offshore oil and gas inquiry

Date	Witnesses
11 March 2009	Oil and Gas independents Association and The Royal Society for the Protection of Birds
19 March 2009	Professor Alexander Kemp, University of Aberdeen and Oil and Gas UK
25 March 2009	Mike O'Brien MP, Minister of State, Department of Energy and Climate Change

The Committee also met Subsea UK for informal discussions during its visit to Aberdeen and visited Oldmacher Academy to discuss climate change matters with pupils.

16. The Committee reported on 30 June 2009[4] and, while agreeing with the Government's focus on security of supply, raised a number of concerns about the fiscal and regulatory regime to which the industry is subjected, especially in view of the current difficult economic conditions.

17. The Government response to the Report was published on 19 October 2009[5], and was debated in Westminster Hall on 29 October 2009[6]. The Government welcomed the Report and undertook to talk to industry representatives and, if necessary, adapt its policy in a number of areas raised by the Committee, including in relation to: a framework of performance measures for the industry; strengthening the voluntary code by which decisions on access to infrastructure are determined; keeping the effectiveness of the field allowance under review; the industry's case for incentives for investment in existing fields; the tax treatment of the West of Shetland area; and the tax regime for decommissioning.

THE FUTURE OF BRITAIN'S ELECTRICITY NETWORKS

18. The future of Britain's electricity networks inquiry was launched in March 2009. The inquiry covered a range of issues, including consideration of what a vision for Britain's electricity networks might look like within a low carbon economy; and the potential for the development of a smart grid. The Committee also looked at investment in, and access to, the transmission network, and the issues surrounding expansion of the grid offshore. Finally, it has considered the role of skills in delivering future networks. Table 5 shows the oral evidence programme for the inquiry.

Table 5 : The future of Britain's electricity networks inquiry

Date	Witnesses
1 April 2009	Dr Michael Pollitt, Judge Business School, University of Cambridge, Professor Goran Strbac, Imperial College London, Dr Jim Watson, Sussex Energy Group
22 April 2009	National Grid, Scottish and Southern Energy, Scottish Power; Energy and Utility Skills
29 April 2009	Renewable Energy Association, Scottish Renewables, British Wind Energy Association; Association of Electricity Producers
6 May 2009	Energy Networks Association; Institution of Engineering and Technology
20 May 2009	Ofgem
17 June 2009	Lord Hunt of Kings Heath, Minister of State, DECC

19. The Committee's Report on the future of Britain's electricity networks will be published in Session 2009-10.

LOW CARBON TECHNOLOGIES IN A GREEN ECONOMY

20. The inquiry into low carbon technologies in a green economy was announced on 2 April 2009. The inquiry is considering the Government's policies in relation to tackling climate change by reducing carbon emissions. The Committee has held seven evidence sessions and has concentrated on the areas of energy generation technologies, energy use technologies, energy efficiency measures, economic stimulus and job creation. Table 6 shows the oral evidence programme for the inquiry.

Table 6: Low carbon technology in a green economy inquiry

Date	Witnesses
10 June 2009	New Economics Foundation; Greenpeace UK
1 July 2009	Environmental Industries Commission; British Wind Energy Association, and Renewable Energy Association
8 July 2009	The Carbon Trust, and Energy Saving Trust; Energy Technologies Institute
15 July 2009	Energy & Utility Skills
21 October 2009	Professor Julia King, Aston University, Low Carbon Vehicle Partnership, and Stuart Hillmansen, University of Birmingham; UK Chamber of Shipping, and Sustainable Aviation
4 November 2009	Desertec, UK PV Manufacturers' Association and Solar Trade Association; Carbon Capture and Storage Association, and Professor Jon Gibbins, Imperial College London
11 November 2009	Sustainable Development Commission; British Electrotechnical and Allied Manufacturers Association

21. The Committee's Report on low carbon technologies in a green economy will be published in Session 2009-10.

Spending plans and performance

22. The Committee held a one-off evidence session with the Secretary of State and senior officials on 28 October 2009 to scrutinise the Department of Energy and Climate Change's Annual Report and Resource Accounts for 2009. The session considered how DECC was using resources to achieve departmental objectives and its Public Service Agreement (PSA) 27 - to 'Lead the global effort to avoid dangerous climate change'. DECC's Main Estimate Memorandum is appended to this Report.

Administration

23. A one-off evidence session was held with the Secretary of State and senior officials from DECC on 25 February 2009 which looked at the establishment of the new Department, and the Department's policies in respect of security of supply, renewables, carbon budgets, and international negotiations. The session provided a useful opportunity to assess the Secretary of State's priorities for his new Department and to establish a point of reference for future scrutiny of the Department.

Emerging policies and deficiencies

24. The core task of identifying and examining areas of emerging policy has been accomplished by one-off evidence session or inquires into: Severn Estuary tidal power projects, examining the Government's proposal for the Severn Estuary; low carbon technologies in a green economy, which has considered the Low Carbon Transition Plan; and the future of Britain's electricity networks which has examined the development of a smart grid.

Associated Public Bodies

25. The Committee held a one-off evidence session with the Committee on Climate Change - one of DECC's associated public bodies - on 4 March 2009. The session covered the Committee's remit in respect of climate change science, carbon budgets and targets, aviation, carbon credits, and fuel poverty.

Informing debates in the House

26. The Government Response to our first Report on UK offshore oil and gas was debated in Westminster Hall on 29 October 2009. This debate was welcomed by the Committee and provided it with an opportunity to question the Minister and seek commitments on how the Government would take forward the issues raised in the Report.

Petitions

27. In accordance with the resolution of the House of 25 October 2007, that committees should note petitions presented to the House within their remits, the Committee considered a petition relating to the effect of wind farm transpiration in Mid Wales on 14 October 2009.

Conclusion

28. As a Committee we have enjoyed the challenge of scrutinising the work of the new Department, which faces the daunting task of seeking to maintain secure, affordable energy, whilst reducing harmful carbon emissions. In our first nine months of existence, we have examined a wide range of issues across the gamut of the Department's work. Looking forward, we face the challenge of providing effective scrutiny of the Government's proposals for energy National Policy Statements over the forthcoming months. The Government hopes these statements will play a key part in helping to bring forward much needed new investment in large-scale energy infrastructure. Our scrutiny is a key part of the Parliamentary consideration of these statements and will form the major part of our work up until the next election. Beyond that election, we hope that our successor Committee will continue to pursue some of the matters we have raised and to hold Government to account in this vital area of its activities.

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3   Liaison Committee, Second Report of Session 2001-02, Select Committees: Modernisation Proposals, HC 962, para 16 Back

4   Energy and Climate Change Committee, First Report of Session 2008-09, UK offshore oil and gas, HC 341 Back

5   Energy and Climate Change Committee, First Special Report of Session 2008-09, UK offshore oil and gas: Government Response to the Committee's First Report of Session 2008-09, HC 1010 Back

6   Official Report, 29 October 2009, Col 143 WH Back


 

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Prepared 10 December 2009