My Lords, from the outset I acknowledge the long-standing interest that the noble Lord, Lord Judd, has in the countryside and the impact of energy infrastructure on the landscape. The noble Lord referred to this matter at Second Reading. I know that my noble friend Lord Greaves also has a lasting interest in wild places.
As a countryman who cares about all these things very strongly, I understand where noble Lords are coming from. This is an important issue, and one that the Government recognise, which is why we have already put in place various safeguards within the planning and regulatory system to ensure that visual amenity and other sustainability issues are taken into account before decisions on infrastructure are made. Ofgem has a clear duty to contribute to the achievement of sustainable development; it must have regard to the effect on the environment of activities connected with the conveyance of gas through pipes and the generation, transmission, distribution and supply of electricity. It is also required to carry out impact assessments for important decisions, which would include consideration of sustainability implications, including local environmental impacts.
Amendments 41 and 46 would require the Government to undertake sustainability assessments of the policy set out in the strategy and policy statement before it is either designated or amended. Of course, it is important that the impact of regulatory decisions is assessed, but the intention of the strategy and policy statement is to reflect existing policy; it will not be a vehicle for the introduction of new policy or duties, nor will it contain any regulatory or planning decisions. The more appropriate time for consideration of the potential environmental impact of energy policy proposals is when they are being considered by the planning authorities—and I entirely understand what my noble friend Lord Greaves says about balance. Existing legislation, including in relation to the energy national policy statements, already provides the framework to ensure that this is done.
Amendments 42 and 50 would require Ofgem to show how it has complied with its general environmental duties to some extent in its forward programme work. Of course, I understand the noble Lord’s concern that Ofgem should take full and proper account of all its duties in drawing up its work plans.
The strategy and policy statement does not override Ofgem’s existing duties to contribute to sustainable development and, because of the requirement for Ofgem
to set out its strategy for implementing the strategy and policy statement in its forward work programme, we believe that it will increase the accountability of the regulator. That is also reflected in the requirement to report annually on its contribution to meeting the strategy and policy statement’s policy outcomes. Indeed, the noble Lord, Lord Judd, referred to the question of the requirement to demonstrate compliance with Ofgem’s environmental duties. Ofgem will be required to report on how it contributes to meeting the policy outcomes in the statement. Existing duties will still apply and we would expect Ofgem’s report to take account of those and how they impact on relevant regulatory actions. I would also expect both the work plan and the annual report to cover the relationship between the strategy and policy statement, as well as Ofgem’s remit.
Amendment 42A would require Ofgem to have regard to the effect on the environment of activities connected with the conveyance of gas through pipes and with the generation, transmission, distribution and supply of electricity. Under the existing regulatory framework, Ofgem already has duties that require it to have such regard. Again, I refer to the point that the noble Lord, Lord Judd, made. That duty is imposed by the Gas Act and the Electricity Act and will still apply even if the guidance were to be repealed. As I have pointed out, nothing in the strategy and policy statement overrides those duties, which would continue to apply. Indeed, it is a reasonable expectation that the SPS will pick up on important parts of the guidance. In my view, Amendment 42A would therefore not be necessary.
The noble Lord, Lord Greaves, asked whether the statement covers oil and gas exploration. No, it would not. It applies only to Ofgem’s existing regulatory duties. Ofgem does not regulate oil and gas exploration and no changes to that are proposed.
Amendments 43, 44, 45, 47 and 48 would introduce formal requirements for the Government to consult specified interest groups in relation to the SPS. As has been referred to, the Bill already makes provision for wide public consultation as we develop the contents of the SPS. I reassure the noble Lord that we intend to engage fully with all relevant stakeholders, including, where relevant, those who represent an environmental perspective. Furthermore, Ofgem will consult on its forward work plan, which will include its strategy for meeting the SPS policy outcomes. That will provide another opportunity for stakeholders to express their views. In the light of that, we do not consider it necessary to name particular interest groups in the legislation.
Amendment 49 would require that, when the strategy and policy statement is laid before Parliament, it is accompanied by a statement explaining how it relates to other government statements on energy policy. The legislation already requires that the strategy and policy statement sets out the Government’s strategic priorities and other main considerations of its energy policy. It will therefore have to reflect existing policy and explain the context in which it is made.
To refer to a point that my noble friend Lord Greaves made about how the strategy and policy statement relates to national policy statements for
energy, the SPS will set out the Government’s strategic priorities and policy statements in relation to issues where the Government consider that Ofgem regulation has a significant role, whereas the national policy statements deal with the development of nationally significant infrastructure in particular sectors—for example, energy and transport. They are the framework for decisions by the Secretary of State on applications for development consent orders for nationally significant infrastructure projects and may be a material consideration for local planning authorities when determining other infrastructure proposals. It is for these reasons that this amendment is unnecessary.
I hope that the reasons I have outlined have reassured noble Lords about why the Government do not think that this amendment, the intention of which is entirely laudable, is necessary. I hope that I have been sufficiently reassuring for the noble Lord to feel able to withdraw his amendment.