The Rt Hon Greg Hands MP

Minister of State for Energy, Clean Growth and Climate Change

29 November 2021

Dear Greg,

I am writing to you about the Local Electricity Bill, of which I am co-sponsor, and which, as you know, would establish the right to local electricity supply.

As you are aware, prohibitive costs and the complexity of licencing rules are currently preventing local energy producers from supplying their communities. Community energy generation has enormous potential to support the UK in achieving the Government’s target of Net Zero by 2050, yet currently makes up just 0.5% of the UK total. It is therefore imperative that barriers are removed. The Local Electricity Bill seeks to support local renewable energy supply, whilst also requiring Ofgem to establish a local supplier licence process.

Earlier this year, Philip Dunne MP, Chairman of the Environmental Audit Committee, wrote to the Secretary of State Business, Energy and Industrial Strategy following our inquiry into “Technological Innovations and Climate Change: Community Energy”, and specifically recommended that the Government “remove the regulatory barriers to allow community energy projects to sell their energy to their local communities”.

I have been made aware that, whilst the Government is supportive of the overall aims of the Local Electricity Bill, you have raised some concerns about the risks of creating distortions in the energy system. I am therefore writing to you further to the letter which was sent to you by Steve Shaw, Director of Power for People, and the sponsors of the Local Electricity Bill, inviting you to meet with us to discuss these issues.

Momentum is growing behind the Bill, which is currently supported by 281 MPs, and 91 local authorities, and I very much hope that we can work collaboratively to ensure that the Bill is as strong as possible.

 Many thanks for your consideration and I look forward to hearing from you about this matter.

Yours sincerely,