Hansard

This group of amendments seeks to meet the recommendations in paragraphs 131 and 132 of the committee’s stage 1 report, which invited me to “reflect on the evidence, discuss further with the” Scottish fuel poverty partnership forum, and “bring forward a proposal for how best to address the policy imperative of fuel poverty within the ... legislation.” The report also asked me to consider where recognition of fuel poverty in the bill would create the most impact. I have lodged several amendments that will embed consideration of fuel poverty throughout the bill, given the importance that the Scottish Government, the committee and, above all, those in fuel poverty have placed on tackling the issue. Amendment 3 will amend section 5 so that the licensing authority, in assessing an application for a heat networks licence, must consider the applicant’s ability to operate heat networks in a way that “contributes to meeting the fuel poverty targets”. In that way, we will make it clear to the licensing authority and operators that fuel poverty is equally as important as reducing emissions, which is already specified as a consideration in section 5. In practice, the requirement to operate a heat network in a way that contributes to meeting the fuel poverty targets could be evidenced in a number of ways that would address the four drivers of fuel poverty. For example, that might include a special tariff for those in fuel poverty; a wider service to provide energy efficiency installations; or the provision of advice on the use of the system or on home energy use more broadly. Amendment 2 makes a technical drafting change to accommodate amendment 3. Amendments 50 and 66 require the Scottish ministers to consult the Scottish fuel poverty advisory panel in developing regulations that provide for making and determining applications relating to heat network consent, and on guidance relating to the designation and variation of heat network zones by local authorities. That is an acknowledgement that, although fuel poverty has been a priority of the utmost importance for the Scottish Government, and for members of the Scottish Parliament more widely, the panel exists in statute to bring the public, private and third sectors together to understand the issues that face those in fuel poverty in Scotland, and to advise on potential policy changes that may be required. I believe that, by involving the panel in the development of regulations and guidance, it can help to ensure that new heat networks in Scotland are designed with those in fuel poverty in mind from the outset. Amendments 50 and 66 also require the Scottish ministers to consult local authorities in the development of the regulations under section 27, and guidance under section 45. I believe that that is right, given that the bill as introduced—and the amendments that have been lodged, which we will come to later—will create the potential for local authorities to have responsibility for designating heat network zones and determining heat network consents. It is important that local authorities are assured of their involvement in designing the functions for which they may become responsible. Amendment 64 seeks to reflect the fuel poverty imperative in part 3 of the bill by providing that, in considering whether to designate a heat network zone, a local authority or the Scottish ministers must have regard to “the potential for a heat network in the area to contribute to meeting ... fuel poverty targets”. Heat network zones will have the potential to carry real consequence, taken together with the provision for permits under part 4 of the bill, and with the potential for their delivery to be supported by obligations on non-domestic buildings owners under powers in the Climate Change (Scotland) Act 2009 and the Non-Domestic Rates (Scotland) Act 2020, on which we have committed to consult later this year as part of our climate change plan update. It is therefore important that the zones are underpinned by public consultation, for which section 39 of the bill already provides, and by extensive analysis. Section 39 specifies a number of the matters that local authorities—and the Scottish ministers, under sections 40 and 44—must consider in determining whether to designate an area as a heat network zone. Those include the availability of waste heat or renewable generation sources; the presence of anchor buildings; and the information that is contained in any building assessment reports that are undertaken under section 54. As the policy memorandum to the bill sets out, “The Scottish Government is ... seeking to contribute to eradicating fuel poverty as part of the Bill by ensuring that new heat networks develop where evidence shows that they can reduce fuel costs for householders and businesses.” I had intended to deliver on that by specifying fuel poverty as a matter to be considered in the designation of heat network zones, under the regulation-making powers at section 39(1)(e). Indeed, our partners at Zero Waste Scotland are currently developing a first draft of the method that may be used to designate heat network zones, and fuel poverty is a major aspect of the criteria in evaluating projects under that method. However, on reflection, it would clearly provide greater reassurance if that requirement was specified in the bill. Amendment 65 therefore makes a consequential change as a result of amendment 66. Amendments 132 and 133 are consequential on amendments 3, 50, 64 and 66, and insert necessary definitions of fuel poverty targets and the Scottish fuel poverty advisory panel in the interpretation section of the bill. I urge members to support each of my amendments in this group. I move amendment 2.