The Energy Bill, which includes proposals for the establishment of the Nuclear Decommissioning Authority, has now completed its passage through the House of Lords. Much of the debate in the Lords focussed on the sections of the Bill which concerned the nuclear industry. The Government brought forward a huge number of drafting amendments during the report stage of the Bill in response to criticisms during its committee stage. However they strongly resisted proposed changes in the substance of the Bill tabled by peers from across the political spectrum.

On several of these substantive points the Government lost the eventual vote and they have been inserted into the Bill anyway. In particular two proposals from Baroness Miller of Hendon will, if not reversed in the Commons, ensure that the Secretary of State has absolute responsibility for ensuring security of electricity supply and that he/she must report annually on the diversity of UK energy supply and what steps are being taken to keep the nuclear option open. Another amendment the Government lost was from Liberal Democrat spokesperson Baroness Miller of Chilthorne Domer, which will now ensure that the regulator cannot insist on cheap electricity at the expense of climate change. Baroness Miller of Hendon, for the Conservatives, also successfully inserted a clause to have combined heat and power exempted from the renewables obligation.

The Bill now moves on to the House of Commons, probably receiving its second reading in May. Following this the DTI can start spending money on establishing the NDA, however the Bill will still have to complete its passage through Parliament. The Government is likely to want to overturn most of the amendments they lost in the Lords so it will have to go back to the Lords after the Commons and could be 'ping ponged' back and forth a few times if the Lords insist on keeping their amendments.