Michael Shanks
MP for Rutherglen · Labour · United Kingdom
“In the past two years, during which I have had the privilege of doing this job, my hon. Friend has frequently shared her experiences as an electrical engineer, and she is right. I, too, am in awe of the grid and of the work that its operators do day in, day out as part of the extremely complex job of balancing supply and demand 24/7.”
“First, on the point about this somehow being a Government project, it is absolutely not. That is why my answers to the right hon. Member for Tatton reflected the fact that, right now, private developers across the country in a whole range of sectors are developing private propositions for all sorts of things.”
“As I have said to the shadow Secretary of State before, though, she is conflating two things, I think wilfully. There are questions to be asked about things that have been raised with her by whistleblowers, which we will now investigate.”
“My hon. Friend is absolutely right, and that was the point I was going to come on to. Community engagement is absolutely critical. It is an absolutely firm expectation from Ministers that any of these large-scale infrastructure projects should have meaningful engagement with communities.”
“There was a lot there, but I am sorry that the hon. Gentleman is not happy to see me at the Dispatch Box. I am very happy to see him in his place, and to be here to answer this important urgent question. On security of supply, let me say that, yes, renewables are not going to be the entirety of our mix at all times.”
“I am aware of that. Councils can take a view on a whole range of things; I do not think there is anything controversial about a council making its views known on a particular project. It is very welcome to do that, and that is why we have democratically elected councillors in this country. On a final point by the right hon.”
The complete record
Every one of 602 lines we hold for Michael Shanks, in date order, each linked to its source. Free to read, in full, without an account. Page 7 of 13.
“It takes a step that is still unwelcome, understandably, for those who have renewables obligations, but it is a pragmatic way to make sure that we get the best deal for consumers without shaking the foundation of the investment we need to build the clean energy system of the future. We think this is the right approach. We stand ready to take further action on the cost of living and energy bills, and we are doing that work, but this is a really important step. I commend the draft order to the Committee. Question put and agreed to.”
“A number of projects will come off the scheme between 2027 and 2037, so the cost will come down. We made a conscious decision in the Budget to increase taxes on the wealthiest in order to pay to bring down the bills of some of most hard-working and less well-off people across the country, and we stand by it. That is why, in April, in the midst of a price crisis, the price of energy in this country will be capped and bills will go down by more than £100, because of the decisions this Government have chosen to take. By the sound of it, the Conservatives would not have taken those decisions, leaving consumers exposed. This order is an important step. I recognise that it does not do everything that Members want but, as I said in my introductory speech, it is about being pragmatic.”
“That is really important, because if that changes, we will see the tens of billions that have been invested in this country in the past 18 months go somewhere else, and will also see the cost of capital—of building the infrastructure we need—go up, which goes on consumers’ bills. A stable regulatory environment in which people can be confident that a contract means what it says is one of the strong fundamentals of this country’s economy, and why people choose to do business here. If we start ripping up contracts, we lose that credibility, so I do not think that plan is serious or credible. If it was, it surely would have been introduced after 2022, when we had the same lessons that we have now. But it was not. On the point about costs, it is important to reiterate that the renewables obligation scheme will come to an end in 2037.”
“Only four years after the price spikes caused by the Russian invasion of Ukraine, when the fossil fuel market did broadly what it is doing now, the lesson is to move even faster away from gas, but the Conservative party is doubling down and saying that now is the time to invest even more in gas. That is the wrong lesson to learn from this crisis. Hoping that, at some point in the future, the wholesale price will come down to a point that justifies that argument is not what we should be doing with the bills of our constituents and businesses across the country. We should be building a system that protects us from volatility, and that is what we are doing. The Liberal Democrat spokesperson, the hon. Member for South Cambridgeshire, made the point well that the UK benefits from having a safe and predictable environment for investors.”
“I always welcome unanimous support from the House for the Government’s energy policy, and it sounds like we will have that this afternoon, which I appreciate. I always thank the shadow Secretary of State, the right hon. Member for East Surrey, for her lessons, although they often do not involve her own time in the Government, or the Conservatives’ 14 years in government. If it was so important to reform the renewables obligation, she had a number of years in which she might have done that, but she did not. It is now, after being Government, that this is all suddenly coming forward. There is an important point about the lessons learned from crisis like this, and this is a moment for us to learn the right lessons.”
“Our target—our mission—of achieving clean power by 2030 is partly about how we get off fossil fuels, and the past few days have demonstrated why that is so important in an uncertain world. It is also, as the hon. Lady rightly said, about how we take the industrial opportunity that goes along with that. How do we get the good jobs and industrial opportunity to go with it?”
“I will return to that theme later. I also want to reflect on the fact that it is the strength of us working together across the United Kingdom that has driven much of the investment into Scotland to make these projects a reality. I will come back to that point later because I know that the hon. Member for Strangford (Jim Shannon) will appreciate that, if nothing else. I want to reflect on some general points, and then I will come briefly to each of the points the hon. Member for Mid Dunbartonshire made, because they are all incredibly important and things we are working towards. On the general argument about what the Government are trying to achieve, we are trying to tackle the energy trilemma—the question of security, affordability and sustainability—by driving as quickly as possible towards clean power.”
“Thank you, Dr Huq. There is genuinely nothing I would rather do on my birthday than answer an important Westminster Hall debate on this topic. It is a pleasure and a privilege to be here—cake to follow. I thank the hon. Member for Mid Dunbartonshire (Susan Murray)—that beautiful constituency on the other side of Glasgow from my own—for introducing this important debate, and it is a pleasure to see so many members of the Scottish Affairs Committee to the Chamber. As an alumnus of that Committee in the last Parliament, it is a pleasure to see it continue to go from strength to strength. As a proud Scot, I reflect many of the things the hon. Lady said about the contribution that Scotland has made to Britain’s economic past, and the critical role it plays at the moment and will continue to play in the future.”
“Member for Mid Dunbartonshire outlined, we have also invested in the first small modular reactors at Wylfa in Wales. I genuinely hope we will see a change of Government in Scotland in May, to one that will look at the opportunities that come from nuclear. I had the great privilege recently of visiting Torness and meeting workers who have worked there for 20 or 30 years in good, well-paid, highly skilled jobs—jobs that Scotland is currently missing out on because of an ideological block from the SNP, which we have to remove so that we can build the power we need.”
“So there is a workforce plan. A North sea future board has also been set up; it met for the first time in Aberdeen in January, and it will meet again in the coming weeks. It is about driving forward actions—not talking about the transition, but working through the solid things we now need to do to make it a reality. I am conscious of time, and I want to pick up on a number of points. On new nuclear, we absolutely see nuclear as a critical component of the clean power plans of the future. It will be the backbone of a clean power system and will deliver energy security in uncertain times. We need to build nuclear faster, which is why we will respond in due course to the Fingleton review on how to improve regulation. As the hon.”
“Returning to the points the hon. Member for Mid Dunbartonshire made about the North sea, she asked whether we could pull together a plan for the North sea transition. We did that and published it at the end of last year. The North sea future plan is a fantastic read, and I encourage everyone to read it. It seeks, for the first time, to bring together projections on the future of the North sea, skills and workforce planning, and the opportunity that comes from renewables. We need to look at both sides of the North sea. It has been hugely important for 60 years, producing oil and gas, and it will continue to be important for decades to come. Equally, we need to build up industries that have been important in recent years but that have not grown as much as we would like, and where we have not seen as many jobs as we need.”
“I was going to come on to the North sea later, but let me do that now, because the hon. Lady raises important points. Yes, our domestic supply is important—particularly the gas that goes straight into the pipes around the country—and it creates jobs for thousands of people in the industry, many of whom I have got to know over the past 18 months. However, it is also important to know that it has been in decline for a long time, with a 75% reduction in production between 1999 and 2024. Although it continues to play an important role, we have been a net importer since 2004, and that will only continue in the years ahead. Yes, we should continue to support domestic production, and it will continue to play a part for years to come, but our long-term energy security does not come from fossil fuels in the North sea.”
“I am glad there is some consensus on many of the actions we have to take in this space, but the question is how we move further and faster to make this happen. Communities cannot wait for those community benefits or for cheaper power, and we should always root this issue in the Government’s No. 1 priority: tackling the affordability crisis facing households across the country. The clean power mission is the way to do that. In an increasingly uncertain world—not least the one we see on our TV screens right now—the answer is to move further and faster away from fossil fuels and to the cheaper, cleaner power that is an economic opportunity for Scotland and the whole country. Question put and agreed to.”
“Finally on the grid, the industry is working collectively to make sure that the billions of pounds of investment going into building the grid results in supply chain jobs across the country. There were many other things that the hon. Member for Mid Dunbartonshire raised that I would love to spend longer talking about. However, at the outset she made absolutely the right point about Scotland’s contribution to the UK’s energy security. It is not a story of the past or a promise of the future, but a reality at the moment. We have to seize the opportunities that come from the energy transition. That means creating the jobs that go along with the infrastructure we are building, so that Scotland benefits and gets that economic potential.”
“We have announced bill discounts for people in the proximity of transmission infrastructure and community benefits from that. We also want to see much more shared ownership of energy, with communities having the ability to take a stake in much bigger projects and take the profits that come with that to invest in their local areas. That is hugely important. Consenting decisions on these projects are devolved in Scotland, and I urge the Scottish Government to move as quickly as possible on making those decisions. Every delay to a piece of grid in Scotland means we are not getting cheaper power on to people’s bills, which could make a huge difference now. Those delays are significant, so I urge them to make that happen.”
“Friend the Member for Glasgow West (Patricia Ferguson) referenced the importance of community energy and of the local power plan, which was published recently—another fantastic read that I encourage all hon. Members to read. This is about the biggest transfer of wealth and power in the energy space in British history, putting communities right at the heart not just of building energy infrastructure, but owning that infrastructure and benefiting from it. Tomorrow I am going to the Western Isles to see a project that has benefited greatly from being able to own that energy and take the profits that come with it. Community benefits remain important as well. We did consult on making them mandatory, and we will announce the outcomes of that consultation soon.”
“First, it is absolutely right to centre the future of the country’s economy and of the clean power that we need to get to households and businesses on improving the grid. For far too long, we have not invested in what is probably one of the most important pieces of infrastructure that this country has. As a result, it is taking far too long to connect projects. As the hon. Lady for Mid Dunbartonshire rightly outlined, every single minute of the day we are wasting clean power, which could be bringing down bills, because we cannot get it through the necessary constraints. We have to build that grid, and with that will come tens of thousands of jobs across the country, so it is a hugely important economic opportunity. I was glad my hon.”
“That is a well-trodden argument that, unfortunately, the facts do not bear out. The energy produced in Scotland is more than it uses, but at any given time Scotland often relies on nuclear energy; in fact, it is quite often imported from England when necessary—when the wind is not blowing and the sun is not shining. Nuclear is critical, and Scotland was relying on gas from Peterhead power station recently because Torness was undergoing renovation work. Scotland does in fact rely on nuclear, and it is important. Furthermore, the argument about costs would be well placed in the SNP’s own plan on this issue, which says that there would be a third off energy bills with independence. There are absolutely no figures to back that up. Let me move on in the time I have left to the key points that have been made.”
“Any levy collected that is not spent will be returned to suppliers at the end of the relevant financial year, in accordance with the regulations. Subject to the will of Parliament, the settlement cost levy for the ESC is due to come into force on the day after these regulations are made. The operational cost levies for the LCCC will come into force by 1 April in each of the relevant financial years. I assure Members that the Government are mindful of uncertainties in setting a budget for the next three years, such as world events impacting on energy demand and policy decisions on new schemes that have not yet been taken. Consequently, we will keep the companies’ budgets under careful review throughout the budget period to ensure that the cost to consumers is minimised. I commend the draft regulations to the House.”
“The narrative is similar for the ESC, which expects the number of capacity market electricity meters to exceed 1.2 million over the budget period—a 450% increase on current meter numbers. The ESC intends to invest in a system architecture redesign to manage the growth and minimise costs, and it estimates that costs per meter will fall by 23%. The operational cost budgets for both companies were subject to consultation, which gave stakeholders and others the opportunity to scrutinise and test the key assumptions in the budgets and, importantly, ensure that they represent value for money. These regulations revise the levies currently in place to enable the companies to collect enough revenue to fund their budgets.”
“It is important that the LCCC and the ESC are sufficiently funded to perform their roles effectively, given their critical role in administering those schemes, which I have just outlined. However, the Government are clear that both companies must deliver value for money. With that in mind, we have closely scrutinised their operational cost budgets to ensure that they reflect operational requirements and objectives for the companies. The LCCC and the ESC are very mindful of the need to deliver value for money as one of their guiding principles. Operational costs per contract are expected to fall by 27% per CfD across the budget period, despite the growing CfD portfolio, because of a number of actions to bring down costs.”
“In turn, we expect the RAB to lower the cost of financing for nuclear—one of the biggest drivers of new project costs—resulting in better value for money for consumers. The LCCC and the ESC’s effective administration of all those schemes has demonstrated their ability to deliver the schemes at a low cost to consumers. That is part of the reason why the LCCC has been working with DESNZ and other parts of Government to develop new schemes for incentivising the deployment of even more low-carbon technologies. For example, the LCCC is working with my Department to develop incentives that will be useful in bioenergy with carbon capture and storage. Although they have not been confirmed yet, contracts for such projects could potentially be entered into, following the process outlined in the 2013 Act.”
“A T-1 auction is ongoing, and a T-4 auction will take place next week, securing most of the capacity that we need toward 2029-30. In both the CfD and capacity market schemes, participants bid for support via a competitive auction, which ensures that costs for consumers are kept as low as possible. DPAs are allocated through a process involving competitive assessment, followed by shortlisting, then a final stage of bilateral negotiations between the developers and DESNZ. LCD CfD contracts are agreed following a structured negotiation process between DESNZ and the generator. Revenue collection contracts under the RAB are agreed through a structured process involving Ofgem, the LCCC and DESNZ, which provides a stable, regulated revenue stream to projects during construction and operation.”
“The revenue collection contract with Sizewell C Ltd, the first project to use the regulated asset base model for new nuclear, became effective on 4 November 2025. Funds have been included in this budget to cover the LCCC’s operational costs for that RAB. Turning to the ESC, the capacity market is the tried, tested and most cost-effective way of ensuring that we have electricity capacity when we need it. It provides all forms of capacity with the right incentives to be on the system and generate electricity when we need it by increasing generation or turning down electricity demand in return for guaranteed payments. The capacity auctions to date have secured the capacity that we need to meet the peak demand out to 2028-29.”
“The LCCC will be the counterparty for those, and funds have been included within the budgets before us to support that role. The LCCC signed its first low-carbon dispatchable CfD with Drax on 4 November 2025. That agreement, which came before this House, will ensure that Drax generates electricity when needed between 2027 and 2031, thus bolstering our energy security. That was a good agreement for consumers, saving £6 a year on household bills compared with the arrangements in place under the previous Government. The Government subsequently agreed heads of terms for an additional LCD CfD with EP Lynemouth Power Ltd on 6 February 2026. If a full contract is concluded in the coming months, it will further bolster our energy security by ensuring that Lynemouth can continue to generate between 2027 and 2031.”
“Under the Energy Act, DPAs are agreements modelled on CfDs. They have been designed to instil confidence among investors for power carbon capture and storage projects and to incentivise the availability of low-carbon, non-weather-dependent dispatchable generation capacity. The LCCC signed its first DPA on 19 November 2024, which related to the Net Zero Teesside power project. That pioneering project in the north-east aims to build the world’s first commercial-scale gas-fired power station with carbon capture and storage. Over the next three years, the LCCC is expected to sign additional DPAs, which will drive the private sector investment required to bring forward further power carbon capture and storage projects by the mid-2030s.”
“Those schemes will incentivise the significant investment that is required in our electricity infrastructure, keep costs affordable for consumers and help to deliver our clean power mission while delivering on energy security. In terms of the existing schemes, CfDs provide long-term price stabilisation to low-carbon generators, allowing investment to come forward at a lower cost of capital and therefore at a lower cost to consumers. The most recent CfD auction—the seventh that we have had—secured a record 14.7 GW of new clean energy capacity across Great Britain, making it the most successful renewables auction in the country’s history. It brought forward a diverse range of renewable technologies while delivering a good deal for bill payers. The LCCC is currently signing the 197 CfDs with projects that were successful in that auction.”
“The LCCC acts as the revenue collection counterparty for the regulated asset base for new nuclear under the Nuclear Energy (Financing) Act 2022. It is anticipated that, subject to future policy decisions and the will of Parliament, the LCCC will conduct additional work to support Government under the Energy Act 2013. That includes work on a new scheme supporting the deployment of large-scale bioenergy with carbon capture and storage, as well as work related to proposals by the Department for Energy Security and Net Zero to support nuclear generation and around potentially supporting landfill gas generation. The ESC administers the capacity market scheme.”
“I beg to move, That the Committee has considered the draft Electricity Supplier Payments (Amendment) Regulations 2026. It is a pleasure to be in this Committee this afternoon, Sir Alec. The statutory instrument, which was laid before the House on 2 February 2026, amends regulations concerning the levies used to fund the operational costs of the Low Carbon Contracts Company and the Electricity Settlements Company. The LCCC administers the contracts for difference scheme on behalf of the Government under the Energy Act 2013. Under the same Act, the LCCC also administers schemes modelled on the CfD scheme, including the dispatchable power agreement and the low-carbon dispatchable contracts for difference.”
“These schemes are really important, and we have seen CfDs and other things being exported to other countries, because they are seen as the way to reduce the cost of capital. That feeds through into all consumer bills, which we are determined to reduce. I welcome the cross-party consensus on the Government’s energy policy—it is a delight to see. Question put and agreed to.”
“I am delighted that the Lib Dems still take credit for some things that they did in government—although not so much austerity and tuition fees. We will move past that, because I know she does not like to talk about those days. The hon. Lady is right to raise the uncertainty in the middle east. That underscores how important it is that we focus on our energy sovereignty here in the UK. This is clearly a turbulent time, but, in truth, we have been living through an uncertain world for a very long time. The only way we can get off the volatile series of ups and downs that we have seen in fossil fuels over decades is to build clean power here in the UK and control the nuclear, the renewables and the storage that goes along with it, which is absolutely critical.”
“I do not know whether it was the shadow Minister who asked the question, but the answer that was sought was in the footnote to the AR7 publication, so we did not have to publish more. It was there in the footnote, if his colleagues had bothered to read it. We have made it very clear that we will publish a response to the Fingleton review very soon. We had hoped to do that in the past few days, but, given all the things that are going on, we will publish it as soon as we possibly can. We are determined to move forward on the recommendations, because the shadow Minister is absolutely right; we need to build more nuclear much faster in this country. Let me turn to the hon. Member for South Cambridgeshire.”
“The outcome from that in terms of cost was that the prices came in at 40% cheaper than the cost of building and running new gas power stations. That is fundamentally the difference here. His party has taken the decision to reference the wholesale cost of gas—given the events of recent days, I wonder whether it might revisit that—while completely ignoring the cost of building and operating the new gas power stations that would be necessary. That power does not just come out of nowhere. On refusing to publish the analysis, I have the benefit of taking my written questions incredibly seriously, so I signed off the answer to that written question myself, and that was not in fact the answer.”
“The work to build the grid that the country needs was not done then, so we need to invest in the grid now, but that is a significant investment in bringing down bills, and we stand by the promise to take £300 off bills by the next election. There are two fronts here. The cost of living is the most important thing facing people across the country, and it is the thing that every bit of Government is seized of taking action on. That is why the £150 was important. Equally, there is no shortcut to bring down bills in the long run, so it is important to say that this work is over the lifetime of the Parliament, to ensure that we put in place the measures that get us off more expensive gas. The shadow Minister referenced AR7.”
“I am grateful for all those technical questions on the statutory instrument before us. Let me turn to the more general questions that were asked. I welcome the support from the shadow Minister, the hon. Member for West Aberdeenshire and Kincardine; it is always a great pleasure when he supports things that this Government are doing. Unfortunately, he does not do it often enough. On costs, the Chancellor made a decision in the Budget to take £150 off bills. That has come through in the price cap period, taking into account the need for investment in the network in order to pick up the slack from the time that the shadow Minister was in government—I think he was the Minister for networks for a period.”
“It is worth remembering that since this Government came to power we have sought to tackle the energy trilemma: how we bring down bills and make the cost of living more affordable—today’s decision on the price cap is an important statement of how seriously we take that mission; how we deliver our long-term energy security in an uncertain world and how we move away from the volatility of fossil fuels, which have cost us so dearly in recent years; and how we build infrastructure that sets the country up for the future. This is about connecting not just renewable energy but the demand projects that will stimulate economic growth across the country. If we do not do these things, all we will do is harm that economic growth. Those decisions are incredibly important.”
“I want to pick up on a couple of things and also go back to why the infrastructure is so important in the first place. We sometimes lose sight of why it is so important for us to build energy infrastructure—in particular, much of the transmission infrastructure that is in my hon. Friend’s constituency. She said that the previous Government had not done that work, and I will come back to that.”
“In this place at this time, it is very easy to take the view that the easy answer is simply to say that we should not build anything anywhere ever again and let the country continue to slide further and further backwards; many on the Opposition Benches, who of course are not here at all, would say that. My hon. Friend concluded her speech by saying something worth repeating: many in her community and across the country are pro the energy transition—they are pro-investment, pro-growth and pro-building the infrastructure—but they rightly want to know that that will be well planned and benefit their community. It is entirely legitimate for communities to ask for that and to be concerned when it does not happen. Given that spirit, she has raised this debate in the right way.”
“It is a pleasure to join this debate under your chairship, Mr Twigg; I know that you take a great interest in these issues. I thank my hon. Friend the Member for Suffolk Coastal (Jenny Riddell-Carpenter) for securing the debate. The hon. Member for Strangford (Jim Shannon) was right: my hon. Friend is making a name for herself as a hard worker in this space. Our meetings about this issue have been genuinely really helpful and insightful for me—and her as well, I hope. She is right to flag these issues. I should also say at the outset that I genuinely welcome the tone that my hon. Friend has taken since she has become MP for Suffolk Coastal.”
“It is necessary to get clean power, cheaper power, to people’s homes and businesses, and to bring down bills, but it is also absolutely necessary to unlock the economic growth that this country needs. There is no shortcut to doing that. We have to build the infrastructure that the country has been crying out for, for many years. I thank hon. Members for their participation in the debate, including my hon. Friend the Member for Suffolk Coastal. I am happy to meet her to discuss the issues further. As I said at the beginning, we take seriously the role that communities play. We thank them for putting up with disruption when infrastructure is built, and for hosting that infrastructure on behalf of the country. We want to ensure that they benefit from it. Question put and agreed to.”
“There are those in this House who believe that we can simply go backwards to deliver energy security and affordability without a serious and credible plan to do so, but simply tying communities to fossil fuels for longer is not a serious proposition. I reiterate what I said at the beginning. My hon. Friend rightly made the case that all the polling that we have seen points to the country being in favour of the energy transition. Every piece of research points to the importance of tackling the climate crisis, which is not a future threat, but a very present reality. Infrastructure, which for too long has been held up in this country, is necessary to do that.”
“With section 106 agreements and community benefits together, we think work is being done to invest in and enhance communities, but I am happy to look at what my hon. Friend has proposed in more detail. To conclude, I reiterate two things. First, my thanks not only to my hon. Friend the Member for Suffolk Coastal, but to right hon. and hon. Members across the House who made serious points and suggestions on how not to turn away from necessary investment, but to ensure that communities genuinely benefit from it. They are absolutely right to champion their local community and to ensure that everyone benefits from the energy transition. Secondly, we should not for a moment think that building that infrastructure is optional, or that it can all be done somewhere else.”
“I am initially hesitant at the idea of an additional levy. Although my hon. Friend made the point that these energy companies are making significant profits, and I would not disagree with her on the scale of some of those profits, we should also be aware that, unless the Government are going to take a power to cap those profits, it is likely that the cost of a levy and the costs of the projects themselves would simply be passed on. Consumers, at the end of the day, would pay for it. I will look into her suggestion further, because every penny on bills makes a difference. Finally, on section 106 agreements, in addition to community benefits arrangements locally, developers are already required to mitigate specific local impacts through 106 agreements. They are legally binding agreements that are paid to local authorities.”
“In July last year, we also published guidance on voluntary community benefits to make sure that they are as robust as they can be. My hon. Friend mentioned a levy, and I am happy to meet her to discuss that further. I pay tribute to the fact that, having identified a problem, instead of just bringing that problem to the House—I do not want to criticise other hon. Members here—she has worked on a solution. I am happy to engage with it and to look at it further. There are two things that I want to say clearly. First, the affordability crisis is this Government’s No. 1 objective. It is driving decisions right across Government. It is what has led to a 7% reduction in bills from the next price cap period, which was announced today. Every single penny that might find its way on to bills has to be scrutinised very carefully.”
“In the Planning and Infrastructure Bill, we have also outlined the very first community benefits and bill discounts for people close to transmission infrastructure, recognising that often they have been left behind in terms of community benefits, as pylons and transmission wires flow through communities. That scheme will be up and running soon. It will directly deliver money off bills for those people living within 500 metres of new transmission infrastructure, but also millions of pounds of investment in communities next to significant pieces of transmission infrastructure such as substations. The grid is critical for the future of the country, and those who host grid infrastructure should get some benefit from that.”
“There is not some third place that would let us say, “Well, we are in favour of this, but please don’t build it in my area.” At some point, it has to go somewhere; as a Government, we are done with dither and delay and we are going to build things again, but communities should get a benefit from that infrastructure being built. We are committed to making sure that communities who host infrastructure will benefit. As my hon. Friend said, we have consulted on whether community benefits should be made mandatory—at the moment, they are voluntary and a patchwork across the country, and they have different degrees of impact on communities, even where the funding is being delivered—and we will respond to that consultation soon.”
“The reason why the Government are taking longer than perhaps we would like is that that is the best way to plan long into the future what the system will look like, and to give communities a real opportunity to shape it at an early stage. That is important for the planning of the system and for community benefits, which other Members have raised. It is really important that we fundamentally recognise that communities who host energy infrastructure are doing a service for the country. Infrastructure has to be built somewhere.”
“The centralised strategic network plan, which will be the holistic design of the network, will follow that. This is something that we should have done 15 or 20 years ago, but we start from where we are now, and we are determined that the future of our energy system will be much more strategically planned and aligned. That plan will take into account local impacts and views, and the regional energy plans in particular will take a much more granular and local look, engaging with local authorities and others to make sure that those plans really take into account both local needs and local opportunities. Those will be designed for Scotland, Wales and nine English regions, and we will bring together various people to share their views on how the plans should meet local priorities. I want to be really clear about the scale of that work.”
“Friend’s constituency is a good example of where better co-ordination at a strategic level would have got the same outputs from the system, but with much less local impact. We are taking forward a number of things—this is where we get into the acronym soup that is the energy world. First, and most importantly, the National Energy System Operator will design the first ever strategic spatial energy plan, or SSEP, which will be published by the end of next year. This is an important opportunity for us to design the future of our energy system holistically: to take into account what can be built where and what the future energy system looks like for our needs, not now, but in the future. As a result of that planning, we can design the most efficient network and transmission system that goes with it.”
“Local communities have a voice in that process through early consultations, but they can also register through the Planning Inspectorate in the pre-examination stage. All those various issues are taken into consideration. Let me also speak to the broader point about how we plan the future energy system. My hon. Friend made a correct observation: while the previous Government now want to run a mile from all the renewable energy projects that they developed, which we would support— I think I am the only person still cheerleading the previous Government’s drive for renewable energy, because they certainly are not—they did not design and co-ordinate the system such that we were not building unnecessary grid to connect all those projects. My hon.”