Energy Prices Act 2022 (Amendment) (Northern Ireland) Regulations 2026

My Lords, these draft regulations were laid before the House on 16 March 2026 and consist of one of the briefest SIs that I have had the pleasure to introduce in this House. The SI consists of two clauses, one of which is a citation and commencement clause. The other one is a very straightforward amendment to Schedule 5 of the Energy Prices Act 2022, which amends the period to which certain powers in respect to Northern Ireland may be exercised from 26 months to six years. Therefore, this is a very brief SI, but I think it will be helpful to noble Lords to explain why this is being put forward today. In the Autumn Budget on 26 November last year, the Chancellor announced changes we would be making to reduce costs on energy bills in Great Britain. We committed at that time to working with the Northern Ireland Executive if they chose to develop a comparable offer. These regulations show us delivering on that commitment. In Great Britain and Northern Ireland, the energy bill changes rely on Energy Prices Act powers subject to different sunset provisions. On this occasion we are altering the sunset relevant in Northern Ireland to facilitate the Executive’s delivery. In Great Britain, the changes announced were to discontinue the energy company obligation home insulation scheme, and to transfer 75% of renewables obligation costs in respect of domestic supply to the Exchequer. The energy company obligation has never applied in Northern Ireland. As a result, the Executive’s comparable proposal to reduce bills relates only to the latter scheme. The Northern Ireland renewables obligation is a scheme to incentivise renewable electricity generation in Northern Ireland. As with the renewables obligation in GB, it closed to new applications in 2017. Following ongoing official-level engagement, my colleague the Minister for Energy Consumers received a letter from the Minister for the Economy in Northern Ireland on 2 March. Minister Archibald asked that we take forward Energy Prices Act regulations to support her department’s powers to deliver. We laid these regulations two weeks later. As noble Lords may know, the context here is that most energy policy issues are transferred matters for the Executive in Northern Ireland to decide on. We in the UK Parliament have a role in these regulations because the primary legislation was passed in 2022 when the Northern Ireland Assembly was not sitting. None the less, I should be clear that the powers we are ensuring that the Northern Ireland department can access relate to a transferred matter and are entirely for it to exercise. It will be for the Executive to announce the full details of the policy they are taking forward.

My Lords, I thank the Minister for his statement, particularly his concluding words acknowledging Northern Ireland’s unique dependence on heating oil and how his department will maintain a vigilant eye. There are issues of timing around this SI, which I am sure will be debated this evening. There were also issues of timing around the last SI that the Minister introduced, in March. I had substantial doubts about that one, more than I have about this one, but, in both cases, I am mindful of the fact that there has been serious dialogue with the Northern Ireland Assembly and the Executive. Although I was very uneasy about the last SI, which was on greenhouse gases and was introduced in the Chamber, I did not vote against it because the fundamental job of the Government here is to pay close attention to and have a proper dialogue with the Executive in Northern Ireland. That said, I will say something in favour of this SI, as against the last one. The danger with the last SI on greenhouse gases was that paragraph 51 of the Windsor Framework commits the United Kingdom Government to ensuring that Northern Ireland goods appear in the UK market without any advantage to either Scotland or Wales, on exactly the same equality of treatment. That seemed to be a major problem—an implicit conflict—because the last statutory instrument favoured Scotland. But this one, by and large, is driven by a proper and correct concern with the future of energy supply in Northern Ireland, and I thank the Minister for his introduction to it.

My Lords, we welcome and support the Energy Prices Act 2022 (Amendment) (Northern Ireland) Regulations 2026—and particularly the continued effort to ensure that consumers in Northern Ireland receive appropriate protection from the continued volatility of energy costs following the war in the Middle East. I thank the Minister for introducing this. We are supportive of the Government’s removal of the energy obligations and ECO policies from consumer energy bills that were, in the UK, brought in under the Autumn Budget. Consumers in Northern Ireland should be able to benefit, as consumers in Great Britain have, from these powers. We welcome this SI, but I have some questions for the Minister. It is ultimately for the Northern Ireland DfE to decide how to use these powers. We welcome the work that is being done to provide it with support in designing that system. That inter-government co-operation is welcome. I note that the exact design of the comparable offer is yet to be finalised, as drafted in the Explanatory Memorandum. I recognise that the Minister might not be able to answer this, but does he have an idea of when the work on this will be completed from the DfE in Northern Ireland? As has been mentioned, it is extremely important that these measures are put in place so that consumers in Northern Ireland can enjoy the same benefits as their counterparts in the rest of the UK. It is well understood, and the Minister mentioned, that some 61% of households in Northern Ireland are dependent on oil central heating as their primary source. Those figures are from 2024 or 2025. I recognise some of the work that the Government have done since the conflict in the Middle East on trying to prevent price gouging. The Minister has mentioned the £53 million support package that has been provided. We welcome that package, but the Minister will recognise that there is more to be done there. Knowing that Northern Ireland is dependent on this fuel oil and that those prices have been particularly hard hit because of the conflict, will some of these measures help to deal with those problems? More generally, what further consideration is being given by the DfE in Northern Ireland and GB Energy, as a community energy scheme, to replacing those outdated heating systems and moving to more cost-effective and efficient heat pump technology? Is that perhaps a project for GB Energy, a community energy project? Has any consideration been given to that in government? Also, can the Government outline how long these amended measures are intended for? Is it expected that they will remain in force until 2030, as is possible under the SI? What criteria will determine whether they are withdrawn or extended? We support this instrument and have no objection to it.

My Lords, this instrument underpins the measures that we have already debated. It creates no new powers and His Majesty’s Opposition are supportive of it. More broadly, as the Minister knows, we do not believe that the Government can lower the structural cost of energy for families and businesses in Britain simply by moving policy costs around from energy bills on to tax bills. But I accept that we have debated the content of the RO and the policy context in which this SI has been brought forward at some length already.