Electricity and Gas Transmission (Compensation) Bill
Wednesday 25th January 2023
(1 year, 10 months ago)
Public Bill CommitteesRead Full debate Electricity Transmission (Compensation) Act 2023 Read Hansard Text Amendment Paper: Public Bill Committee Amendments as at 25 January 2023 - (25 Jan 2023)
The Chair
With this it will be convenient to discuss the following:
Amendment 2, in clause 2, page 2, line 4, leave out “applies” and insert “extends”.
This is a technical amendment replacing the reference to application with a reference to extent.
Amendment 3, in clause 2, page 2, line 5, leave out “on the day on which it is passed” and insert—
“at the end of the period of two months beginning with the day on which it is passed”.
This amendment provides for commencement two months after Royal Assent.
Amendment 4, in clause 2, page 2, line 6, leave out “and Gas”.
This amendment amends the Bill’s short title to reflect its contents.
Clause 2 stand part.
New clause 1—Resolution of compensation disputes in electricity-related land acquisition cases—
“(1) The Secretary of State must draw up proposals for the use of alternative dispute resolution processes in electricity-related land acquisition cases.
(2) An ‘alternative dispute resolution process’ is any process enabling the parties to a dispute to resolve the dispute out of court.
(3) An ‘electricity-related land acquisition case’ is a case where—
(a) an order is made under section 114 of the Planning Act 2008 (orders granting development consent), and
(b) the order authorises the acquisition of land for a purpose connected with the transmission of electricity.
‘Transmission’ in paragraph (b) has the meaning given in section 4(4) of the Electricity Act 1989.
(4) The Secretary of State’s proposals must include proposals for ensuring—
(a) that alternative dispute resolution processes are available for determining the amount of compensation to be paid to landowners in electricity-related land acquisition cases,
(b) that the processes are accessible to landowners without undue difficulty or expense,
(c) that the processes are operated, and determinations reached, in a way that is independent of the parties to the dispute, and
(d) that determinations are enforceable.
(5) The Secretary of State must lay before Parliament a report containing the proposals drawn up under this section.
(6) Before laying the report the Secretary of State must consult such persons as the Secretary of State considers appropriate.”
This new clause is intended to replace clause 1. It focuses the proposals which the Secretary of State must draw up on electricity-related cases rather than gas-related cases. It also contains a number of drafting and clarity-related changes.
Amendment 5, in title, line 1, leave out from beginning to end of line 4 and insert—
“Require proposals to be drawn up for the use of alternative dispute resolution processes to determine the compensation payable to landowners in certain cases where land is acquired for the purposes of electricity transmission.”
This amendment amends the Bill’s long title to reflect its contents.
Dr Liam Fox (North Somerset) (Con)
It is a pleasure, Mr Hosie, to have you chair our Committee, which I intend to be brief.
On Second Reading, I set out the cases that form the basis for sponsoring the Bill, and I feel no need to go through them again, except to say that when one of my constituents approached National Grid with a problem that was unresolved and said, “I’m going to take it to my Member of Parliament”, he was told, “Don’t bother. He won’t be able to do anything.” Well, here we are today; and we will see who is able to make changes and who is not. Generally, I find that threatening Members of Parliament, whether directly or indirectly, is an unwise course of action.
Apart from the cases, there was the principle: one of the largest listed utility companies in the world cannot be judge and jury when it comes to compensation issues relating to our constituents. At the weekend, in my constituency I had a new case of potential flooding, which had been warned about by local farmers, who had said that if National Grid did not put in adequate draining for one of the access roads, it would result in flooding on a new estate. Sadly, in the heavy rains we saw in recent weeks, that is exactly what we got. Again, that shows why we need to have this sort of compensation arrangement.
I am grateful to Members on both sides of the House for the cross-party support the Bill has received, and to the Minister and his officials for the amount of work they have done to ensure that we dealt with all the points and issues arising from Second Reading. In particular, I point out a number of issues to the Committee. First, it will now be clear—through the amendments to the Bill—that it relates to all electricity-related, land acquisition cases. That includes compulsory purchase and access agreements, which might not have been clear previously.
Secondly, the tests we set to make the Bill acceptable have all been met: the process will be accessible without undue difficulty or expense; the processes will be operated in a way that is independent of the parties to the dispute, so that one party is not judge and jury, as at present; and determinations will be enforceable. There is no point in having rights in law if they are not enforceable, as we discussed in this room during the passage of what is now the Down Syndrome Act 2022. In other words, the four tests of accessibility, affordability, independence and enforceability are all met in the Bill.
I have a few brief questions to ask the Minister to ensure complete clarity. Will he give an assurance that the Bill will apply to current, ongoing disputes that are not settled at the point of commencement of the Act? We are not asking for retrospection, which is a legal principle that I generally find to be abhorrent, but for cases that are not concluded when the legislation comes into effect. Will the Minister give us an update on the intended timescale for the completion of the Government scheme after the commencement of the Act? In other words, how long will it be before our constituents will see the applicability of the points that I have raised? Finally, does the Bill apply to Scotland, and in what circumstances? Those are my last remaining unresolved—or perhaps unclear—questions.
I am extremely grateful to the Minister and his team for getting clarity, and a Bill that is widely accepted in the House as necessary and in a form that the House can accept.
Ian Paisley (North Antrim) (DUP)
It is a pleasure to serve under your chairmanship, Mr Hosie.
I thank the right hon. Member for North Somerset for introducing and sponsoring the Bill, which has my support. However, I have a question for the Minister about clause 2 and the territorial extent of the Bill; it is probably an obvious question. Like most Bills in the House, whenever devolution was working, the usual clause states that the Act will apply to England, Wales and—on occasion—Scotland. Of course, the words “Northern Ireland” are left out, but with the failure of devolution the Minister does have responsibility.
I hope that the Bill will be reported today, but will the Minister take it away, look at the issue of territorial extent to see whether there is a gap that needs to be filled with regard to compensation claims in Northern Ireland, and ascertain whether that should be applied to and included in the Bill?
The Minister for Energy and Climate (Graham Stuart)
It is a pleasure to serve under your chairmanship, Mr Hosie.
I thank my right hon. Friend the Member for North Somerset, and I am sure that Members across the Committee congratulate him. He probably snapped into it pretty easily; not only did he have the great success of the Down Syndrome Act but, as my former boss at the Department for International Trade for some time, seeking to command me was something that came naturally to him. Perhaps I have an overly built-in response, which is of course to try to do whatever he wants.
We have made tremendous progress. I am pleased that the Bill gained the support of Members of the House, passing Second Reading on 25 November last year. On Second Reading, my colleague the Minister for Industry and Investment Security, my hon. Friend the Member for Wealden (Ms Ghani), agreed that the Government would work with my right hon. Friend on the Bill.
The electricity network is fundamental to accelerate our ambitions for net zero and energy security. Since taking on my role and seeing the vast amount of technology we need to deploy, I return again and again to the same point: if we do not get the grid right, whatever we do is affected, whether that is space energy; small modular nuclear reactors; hydrogen and carbon capture, utilisation and storage; or floating offshore wind. Whatever it is, without the grid we will not have a transformation, which we have to do at a most remarkable pace.
The president of the National Grid has said there will be six-and-a-half times more investment in the grid over the next seven years than in the previous 30. That is a massive deployment, supply chain and financing challenge, but it is also a political challenge, because of unprecedented imposition of necessary infrastructure on communities up and down the land. Ensuring that we have a system that is fit for purpose and does not roll communities over—but rolls with communities and their grain—is fundamental. That is why I am so grateful for the Bill. I do not believe it will slow down that tremendously required acceleration of deployment, but it will help to build a system that is better able to listen to the communities we represent and ensure that they feel part of the solution, not just subject to it.
As I said, the network needs to be transformed at an unprecedented scale and pace, and it needs to accommodate an expected doubling in overall electricity demand by 2050, as we electrify sectors including transport, heat and industry. In order to achieve that, we committed in the British energy security strategy to accelerate the timescale for delivering new onshore transmission network infrastructure.
We recognise that in cases where land or land rights have been acquired and a settlement is not agreed between landowners and the transmission owner, challenging that via the upper tribunal can be expensive—a point made strongly by my right hon. Friend the Member for North Somerset. The Bill presents an opportunity to address the issue by ensuring access to alternative dispute resolution processes, which can play such a crucial role in offering a quicker and more affordable route to the resolution of disputes.
We believe that the Bill can support the transformation needed so that we can have clean, secure and resilient energy for the Great British people. Landowners should have access to a clear, fair, affordable and enforceable system for dispute resolution, and I am pleased to say that we have worked closely with my right hon. Friend the Member for North Somerset since Second Reading and support his amendments.
I will now touch on those amendments, which I encourage the Committee to accept. Amendment 1 will remove clause 1, which will be replaced by new clause 1. The new clause focuses the proposals on electricity-related cases rather than gas-related cases. We support that change, as the examples raised by my right hon. Friend have related only to electricity network infrastructure and we are not aware of issues for gas infrastructure. It seems too early to include gas infrastructure definitively. However, the Secretary of State has the option to expand the scope if needed. Hon. Members have raised this issue in previous stages.
The new clause moves from establishing a new mechanism to encouraging the use of alternative dispute resolution processes instead of immediately resorting to the upper tribunal. It means that we can therefore consider existing practices, whether they can be strengthened to meet the aims of the Bill, and whether new processes and mechanisms may be required. The new clause retains the key factors that the proposals must consider, which my right hon. Friend set out: ensuring that decisions are enforceable, and that the process is affordable and accessible. He also mentioned independence, which is another important aspect.
Amendment 2 simply replaces “applies” with “extends” in clause 2(1), which deals with territorial extent. It is a minor technical amendment to reflect more appropriate terminology. Amendment 3 changes commencement to two months after Royal Assent to bring the Bill in line with standard commencement procedure for primary legislation. Amendment 4 removes gas from the Bill’s short title in clause 2, in line with the focus on electricity transmission infrastructure that I have already discussed. Finally, amendment 5 edits the Bill’s long title to reflect its contents in new clause 1. New clause 1 should be added to the Bill, and clause 2, as amended, should stand part of the Bill.
My right hon. Friend raised some questions. He rightly said that retrospective law is typically abhorrent, but asked whether current disputes could be resolved through whatever proposals come forward. We would certainly want current ongoing disputes to be covered once proposals are implemented, but, of course, we do not yet know what those proposals are. Our intention is to establish an alternative dispute resolution taskforce—very grandly named—which will be responsible for putting forward proposals, and we will have to see what ideas are generated by that taskforce. If a dispute is still unresolved by the time that any proposals are implemented, such cases should be able to use any alternative dispute resolution options that result from the Bill, if they are appropriate. If the dispute, of course, is resolved before the proposals are implemented, any options resulting from the Bill will not be required.
Graham Stuart
As I have said, we will establish an alternative dispute resolution taskforce to develop the proposals. We will ensure that there is independent and balanced representation among members—for example, by including landowner representatives alongside electricity network operators. As I am sure this Committee will be pleased to hear, we will also look to engage closely with my right hon. Friend to ensure that he is happy with the make-up of the taskforce. By establishing that taskforce, we can ensure that the right expertise and balance of views is available to consider carefully the processes and options that will work best for landowners and electricity network operators.
We expect to establish the taskforce in 2023. I would like to see it sooner rather than later, and have already asked—for my purposes, which I may or may not make public—for a timeline for that process. Having come so far, I hope my right hon. Friend can trust in me to ensure that we move this forward with suitable rapidity, but if he lacks that trust I think he can trust his own use of the mechanisms of this House to ensure that the Government are kept honest and move in an expedited way to set up this taskforce.
One of the first tasks of the group will be setting a scope, a work plan and a timeframe. My right hon. Friend asked whether the Bill applies to Scotland, and in which circumstances. The Bill does extend to Scotland, but as currently drafted it applies strictly to cases where a development consent order has been granted for electricity transmission infrastructure under the Planning Act 2008. The development consent order process does not apply in Scotland, except under limited circumstances that do not relate to electricity transmission. While electricity transmission is reserved, dispute resolution and other things are devolved, so in Scotland, there would be an interplay between the various responsibilities of the different Governments. It will be the role of the taskforce to develop the full scope of the proposals.
The hon. Member for North Antrim asked about the Bill’s application in Northern Ireland. As he said, energy transmission is devolved in Northern Ireland, as is energy generally, and notwithstanding the failure so far to convene the Executive in Northern Ireland, the devolution settlement stays in place. We only step in reluctantly, when there is no other choice; we have successfully done so, and I am pleased to see people in Northern Ireland receiving their energy bills support scheme payments and their alternative fuel payments this week, either directly into their bank accounts or through voucher provision.
My Department did a lot of work to ensure we could serve the people of Northern Ireland, because we could not leave them without that support this winter, but that is not an indication that I or the Government have any appetite to fulfil a function that is properly devolved in Northern Ireland. We respect that, and we want to see those institutions restored as soon as possible, because people in Northern Ireland deserve to have the people they elect delivering the things that have rightly been devolved for them to deliver for the good of people in Northern Ireland. I recognise that we would swiftly move from people welcoming the Minister stepping into a gap to them asking, “What’s your status? How are you making these rules for us?” That is why we really want to see the restitution of people in Northern Ireland determining what happens there.
Graham Stuart
I am going to close; I have probably been overly provocative and overly long on Northern Ireland. Suffice it to say that the Bill does not apply there, but I will give way to the hon. Gentleman.
Ian Paisley
I appreciate the Minister’s point of view, but on a practical level, if at some point there is not a devolved Government operating in Northern Ireland, will the Minister extend the Bill so that compensation payments can be properly covered? The Minister has the right to do so; he represents the Government of the United Kingdom.
Graham Stuart
I am a Minister in the Government of the United Kingdom, and we have devolution and have devolved certain bits away. I might be part of the Government of the United Kingdom, but I cannot go in and take over the function of local planning from democratically elected local authorities, because they have that function, not me. I take the hon. Gentleman’s point, but it would be for others to decide.
I am straying into Northern Irish politics, which I am told is a difficult thing to do unless one is deeply well informed, so I will stop there. I have talked enough about it already, so I will back off swiftly. The main point is that the Government support the Bill, which will ensure access to alternative dispute resolution for landowners when land is acquired by transmission owners. I therefore look forward to working with my right hon. Friend the Member for North Somerset to support the passage of the Bill.
I thank you, Mr Hosie, for your excellent chairmanship, and my civil servants for their hard work. They have not only been working with my right hon. Friend the Member for North Somerset; as we know, so much of the work is done by his office, so it is through the work of my officials and my right hon. Friend’s office, as well as the occasional appearance by the two of us, that we have been able to make such progress.
Dr Fox
I am grateful to my right hon. Friend the Minister for clarifying those points. We all accept the need to upgrade the electricity transmission network, and those Members who have not yet seen what the new electricity pylons look like are welcome to come down to the south-west and see for themselves. I find them incredibly visibly intrusive up close, although not un-aesthetically pleasing in themselves; how much one objects to them really depends on how close one is to them.
The point is that those pylons will be rolled out across the country. One of the roles we have in Parliament is not just to deal with issues when they reach crisis level, but to anticipate them. It is therefore important to bring in this legislation before the matter becomes an issue for most Members of Parliament, even if they do not yet understand the scale of the problem they are likely to face. It is a bizarre aspect of democratic politics that MPs get much more credit for solving a problem than for preventing one, but we try to live with that.
Electricity Transmission (Compensation) Bill
Friday 24th February 2023
(1 year, 9 months ago)
Commons ChamberRead Full debate Electricity Transmission (Compensation) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 25 January 2023 - (25 Jan 2023)
Dr Liam Fox (North Somerset) (Con)
I beg to move, that the Bill be now read the Third time.
It is one of the in-built oddities of democratic politics that more plaudits tend to be generated by dealing with a problem than by preventing one, yet that is exactly what this Bill sets out to do. We have a problem in North Somerset, and the purpose of this Bill is to prevent it becoming a problem for people in constituencies in other parts of the country.
As we replace our dependence on fossil fuels, for strategic and environmental reasons, with an increased use of renewables and nuclear, there is a need for new infrastructure for electricity transmission. As I have said at every stage of this Bill’s progress, that is something that we all accept as necessary. However, as we do that, we must not allow the rights of individuals to be overridden by the systems for compensation and the current legislation.
Anyone who has not yet seen what is coming to the rest of the country and who wants to get a look at the new T-pylons, which will replace the classic ones that we are all used to seeing, should feel free to take a drive down the M5. They will see what looks like something out of “The War of the Worlds” appearing across the countryside. It is a matter of taste whether people find the new pylons attractive or unattractive, although for the life of me I cannot understand why we have chosen white, which is just about the most stand-out colour with the greatest impact on the visual environment; if we wanted them to blend in better, a coat of green paint would not go amiss. But who knows? In time we may come to accept them visually, just as we came to accept the previous pylons.
This all occurred because we are increasing the voltage in our overhead cables and getting the new infrastructure to link the new Hinkley Point C nuclear power station with Avonmouth. Actually, the quickest and shortest route would have been undersea. I still think it was a huge mistake not to go ahead with that approach, but that is going over history; we now have the new pylons.
The problem we face is that the combination of planning law and current compensation methods hugely favours companies such as National Grid and the distribution companies over our constituents. If they want to put in an access road to build the new pylons or ensure the right to maintain them in time, they can do so; if constituents object, their property can be compulsorily purchased. At present, if National Grid tells our constituents that they will get a certain amount of compensation, and they do not like it, they end up having to go through the court system, which can be hugely expensive for individuals. There is not much point in having rights in law if those rights are too expensive to enforce. The whole point of the Bill is to redress that problem and ensure timely, accessible, affordable and binding arbitration that gives our constituents fair access to justice in a way that will not result in a potentially huge financial cost.
As I told the Bill Committee, the genesis of the Bill was that one of my constituents went to National Grid and said, “I’m not willing to accept your treatment. I’m going to see my MP.” They were told, “Fine, go and see him: he won’t be able to do anything about it”—but one of the great things about being an elected Member of Parliament is that we can do something about it. I hope that that individual is listening and watching as we do something to redress the balance in the David and Goliath struggle and help our constituents to deal with it.
Most of the issues raised on Second Reading have successfully been dealt with by amendments tabled in Committee. I am extremely grateful to the Minister: throughout the Bill process, he showed the constructive disposition with which I was familiar from working with him at the Department for International Trade. We made particular progress on ensuring—I would welcome it if he reiterated this point—that disputes that are not settled when the Bill comes into effect will still be covered by it. It is a matter not of seeking retrospection, but of ensuring that where disputes have not been settled, our constituents can use the provisions set out in the Bill.
One issue is perhaps not as completely settled as I would like. The Bill relates to new transmission, but I would be grateful if the Minister confirmed that it will also cover distribution. That is a slightly lesser issue for our constituents at present, but if we replace the distribution network as part of the Government’s drive towards net zero and decarbonisation, there could be considerable disruption for our constituents as a consequence. The question that will arise is: at what point does updating and upgrading become new, and therefore within the scope of the Bill?
Greg Smith (Buckingham) (Con)
My right hon. Friend is making a powerful case for the protection of all our constituents. On the point he just made, does he agree that such disruption is coming down the line? We are seeing a huge increase in the number of companies wanting to install solar panels, particularly on the roofs of distribution centres and warehouses up and down the country, but finding they cannot do so because there is no substation nearby to take the power in. If we are to have that revolution in solar energy on the rooftops of the United Kingdom, such fundamental change to distribution and substations is going to come.
Dr Fox
I am grateful to my hon. Friend for raising that point. It is true that we will require substantial new infrastructure. However, if we are going to do that successfully, surely we need the assent of the people of the country to do so—and if we are to get that, we must ensure that they are given the appropriate mechanisms to seek redress, should they come into conflict with some of the very large corporations that I have mentioned.
I would be grateful if my right hon. Friend the Minister could just deal with that issue. I would like him to tell us that, as we develop this upgraded distribution network, it will count as new infrastructure and therefore fall within the remit of the taskforce he is going to set up. I welcome the acceptance of the amendments, which I think fulfil the cross-party spirit of support throughout this process—I do not see it visually represented on the Opposition Back Benches today, but I know Opposition support was there.
I look forward to my right hon. Friend coming forward with the details of the taskforce. There are two things we will specifically want to see. The first is a speedy process for setting up the taskforce and for how it comes to its conclusions, so we can get as early a utilisation of this legislation by our constituents as possible. The second is that the taskforce itself is fully representative, so it is not simply from the producer side of the equation, but at least equally weighted in terms of those whose properties may be affected, including the farmers up and down the country who are likely to be affected more than most.
I am very grateful to the Government for their support for this Bill and look forward to it becoming law, and I look forward even more to my right hon. Friend the Minister having the opportunity to clarify these small points in the way I know he is more than capable of doing.
Dean Russell (Watford) (Con)
Will my right hon. Friend give way before he sits down?
Dean Russell
I thank my right hon. Friend for giving way at the last moment. Will he clarify for my constituents in Watford, who may not be directly impacted by the Bill but I am sure are very supportive of it, that while this is about fair compensation for disruption, ultimately it ties into the fact that people are increasingly using electricity far more, to charge their mobile phones, electric cars and so on? As the infrastructure grows, we need to make sure there is fair compensation for those people who may have to have the infrastructure put in place on their sites.
Dr Fox
My hon. Friend shows yet again that timing is everything in politics. He says that his constituents may not be affected by this Bill; I would correct that, if I may, to say that they are not affected by the changes yet. These changes are coming, to the whole country, sooner or later. We in North Somerset may be at the beginning of that process and may therefore have been the most affected up to this point, but as we move towards decarbonisation and net zero there will need to be, as my hon. Friend the Member for Buckingham (Greg Smith) said, an upgrade of our entire system of transmission and distribution. As we use more electricity, as my hon. Friend the Member for Watford (Dean Russell) says, there will be all the more need for that system to be robust.
Therefore, while the provisions of this Bill may not affect a number of constituencies yet, they will at some point affect them all. As I said at the beginning, we do not always get credit in politics for preventing a problem; let us hope that today is the exception that proves the rule.
Mr Deputy Speaker (Mr Nigel Evans)
Friday is always a day for firsts. I have never allowed a photo finish intervention before, so congratulations Mr Russell.
Rob Butler (Aylesbury) (Con)
I rise in support of the Bill brought forward by my right hon. Friend the Member for North Somerset (Dr Fox), which sets out to empower landowners with a clear, fair, affordable and enforceable means of dispute resolution with electricity network operators. I must commend him on all the work he has undertaken to get the Bill to this stage. I think he has the unusual record of two successful private Members’ Bills in two consecutive years.
In the pursuit of greater energy security and meeting the goal of net zero, the UK faces the daunting task of significantly expanding and upgrading its electrical infrastructure across the country. As my right hon. Friend said, as we seek to decarbonise our energy by doing things such as using heat pumps in place of existing gas or oil-powered heating or having electric cars, the demand for electricity will inevitably be far greater in future decades than at present in each and every constituency of this country.
Furthermore, today’s one-year anniversary of Putin’s illegal invasion of Ukraine and its consequential energy crisis brings into sharp focus the importance of ensuring our energy security here in the UK. It is essential that upgrading the power grid is conducted effectively, efficiently and economically for the British people, given how heavily we depend upon it. Regardless of how many innovative forms of energy production we introduce, the grid’s expansion and transformation are critical factors in pursuing the targets of decarbonisation and greater energy security.
It is estimated that as much as 600,000 km of additional distribution network cabling lines could be required by 2050 across the country. That is a staggering figure, and it will inevitably have a serious impact on landowners, as is the case with all large infrastructure projects. I know all too well the way these large infrastructure projects can disrupt local communities from the bitter experience of HS2 in my constituency. Its construction works continue to bring disruption to local residents and businesses, and to wreak devastation on our beautiful Buckinghamshire countryside. The perpetual road closures and the resulting traffic delays caused by HS2’s construction fill my inbox each and every week.
I consistently raise these concerns with HS2 Ltd and its contractors, but rarely do we see progress, because we do not have the support in legislation that the Bill will introduce. Farmers in my constituency have felt powerless against HS2 Ltd when subjected to the invasive requirements of access to their land, resulting in distress and uncertainty. No landowner should feel that they are pitted in the scenario of David and Goliath, and my right hon. Friend’s Bill seeks to address that, at least with respect to electricity transmission.
The Bill sets the stage for encouraging the use of alternative dispute resolution processes between landowners and network operators, such that cases can be resolved out of court. I believe this will establish an effective baseline for network operators to be good neighbours with communities, and may well serve to allay many of the grievances that landowners could have when deprived of their land or having their land used through no fault of their own. While the Bill will not impede the necessary and, indeed, accelerated expansion of infrastructure, landowners and communities will be empowered to have a say and to be included in the process, and that must be right.
In times to come, I am confident that some of my constituents will benefit from the ramifications of the Bill. As my right hon. Friend has said, this issue will affect each and every constituency across the country. Already, Aylesbury has been highlighted as an area in which the existing power grid is constrained, and it is in the process of being upgraded. However, our historic market town is also challenged by the massive expansion of housing, with a total of 16,000 new dwellings scheduled to be built in and around the town between 2013 and 2033. We are already around halfway through that process. Those households create greater demand for electricity already, and they will continue to do so in the next 10 years. This Bill is a reassurance that in the future, my existing constituents who own land that may be required by electricity network operators could have reasonable means to resolve any disputes that arise.
I add in passing that the housing development I referred to will also require considerable investment in my town in other infrastructure, which is at breaking point. Traffic constantly remains the No. 1 concern. Aylesbury has been reported to have the eighth worst traffic congestion in the country. We need better roads around the town, and I urge Homes England to make rapid progress in approving the request from Buckinghamshire Council for funding for link roads, so that we can get shovels in the ground and cars on the move. East West Rail’s Aylesbury spur would also significantly alleviate many of the congestion problems faced by my constituents, but despite that spur being part of the original plans, it is now in peril. I very much hope that Ministers in the Department for Transport will do everything necessary to secure that vital link.
No less important is that the thousands of new homes being built in Aylesbury require schools for all the children moving to the area, and sufficient healthcare provision.
Rob Butler
You are absolutely right, Mr Deputy Speaker. As I am highlighting, electricity is one element of infrastructure; I am very pleased that that infrastructure will be introduced as a result of the Bill tabled by my right hon. Friend the Member for North Somerset, but there are so many other aspects of infrastructure, which you have been kind enough to allow me to refer to in my speech. The plain truth is that we are going to need much more of that support in the years to come, and electricity will be behind it all.
As my right hon. Friend has set out to achieve, the scope of his Bill—even if it has not always been in my speech—is clear and to the point. Its could save landowners and communities in Britain from the potentially prohibitive costs that are involved in litigation, the uncertainty that comes with that litigation, and a great deal of emotional stress that such circumstances can place on them. I applaud my right hon. Friend for his efforts to provide landowners with the means to resolve their disputes with electricity network operators fairly. I thank you for your generosity, Mr Deputy Speaker, and I look forward to the Bill making its way on to the statute book as soon as possible.
Mr Deputy Speaker
I call Mr Greg Smith—mostly on electricity transmission, I assume.
Greg Smith (Buckingham) (Con)
Thank you, Mr Deputy Speaker. It is a pleasure to follow my hon. Friend and constituency neighbour, the hon. Member for Aylesbury (Rob Butler), who so skilfully weaved into his speech many of the issues that we both face across our respective constituencies in relation to all the projects he listed. He has said that Aylesbury has the eighth worst congestion in the country; given that to get from one part of my constituency to another, I often have to go through the middle of Aylesbury, I certainly wish him every success in combating that congestion.
The wider point—I think it is very relevant, and it is why I rise to support my right hon. Friend the Member for North Somerset (Dr Fox) on what is an excellent Bill—is that we in Buckingham are no strangers to the acquisition of land in order to build something, quite often against the wishes and will of those who own that land. I am particularly referring to High Speed 2, but the principle remains the same: people should be fairly compensated when their land is taken or disrupted. Let us be really clear about this: in my constituency, the vast majority of those who see their land disrupted for projects, certainly for electrical upgrades, are farmers. Their ability to farm their land—to get their combine harvester from one side of a field to another, or to move their tractor in the way they wish—is being disrupted. Those farmers absolutely must have a clear, fair dispute resolution mechanism and fair compensation, not just for the loss of the use of that land but for the wider disruptions that that loss causes them.
Roughly this time last year, I was delighted to speak on, I think, Third Reading of my right hon. Friend’s Bill that did so much good for people with Down’s syndrome in this country. It is a pleasure to again support him on a Bill that will fundamentally deliver a fairer outcome for landowners in my constituency, and across every right hon. and hon. Member’s constituency. The absolute need for affordable, accessible and independent alternative dispute resolution is clear and vital when we consider some of the points my right hon. Friend made about the sheer scale of improvements, upgrades and new installations of electrical power distribution systems in this country.
As I said to my right hon. Friend the Member for North Somerset in an intervention—my hon. Friend the Member for Watford (Dean Russell) also made this point—this is an issue that will affect each and every one of our constituencies, not least as we see renewables installed, be it onshore wind or solar on the rooftops of distribution centres, warehouses, factories and commercial premises up and down the country. As it stands, the grid simply cannot cope with the power input coming from many of those solar installations. That is one of the reasons why we are seeing so many applications for huge solar farms on agricultural land up and down the country. That is where, within the existing grid, the substations happen to be that can physically take in the power to distribute to all of our homes and all of the businesses up and down the country. My right hon. Friend is absolutely right to pinpoint the need to prevent a problem before it arises.
Dr Fox
The term “landowner” is being used very widely in this debate, but would my hon. Friend like to amplify the point that this is not simply about big landowners, but about small farmers and those right down to the level of individual households and homeowners that will be affected? There is a key principle—I might say a conservative principle—in this, which is that those who own property and land have rights, and when they are forced in the name of the public good to have some of the natural rights of property overridden, it is only fair in principle that they get compensation and access to law and justice as a result.
Greg Smith
My right hon. Friend is absolutely right in what he says. In some cases, we may be talking about huge estates or big landowners, but in the vast majority of cases we will be talking about people with very modest parcels of land, smallholdings or small farms, such as small livestock farms that are of not more than 100 or 200 acres and small arable farms of 300, 400 or 500 acres. Those people do not necessarily have the means, and certainly not the capability, amid the stresses and strains of just getting on with their daily lives, to take on very expensive dispute resolution, which often involves big legal and tribunal fees, not to mention the time away from working their land in the way they want to and going about their daily business on it.
My right hon. Friend is absolutely spot-on and correct, as he always is, to say that it is a fundamental conservative principle to ensure that if we, in the name of the public good—sometimes that public good can be questionable, as in the case of HS2—need to take land, it needs to be fairly compensated. That is a non-negotiable position as far as I am concerned.
I am grateful that the Government have already indicated their support for the Bill. I urge my right hon. Friend the Minister to be clear with the House when he responds about the timescale in which the Bill will be implemented once it has achieved Royal Assent, as I have no doubt it will, not least the creation of the taskforce. In his speech, my right hon. Friend the Member for North Somerset made the very strong point that the taskforce must be representative. It cannot just be a one-sided body—it cannot look just to the power companies or to particular vested interests—but must be as broad and representative as it possibly can be to ensure that everybody gets a fair deal.
There is also the point with dispute resolution—no matter what sphere we are looking at, but in this case it is land taken for electrical distribution and transmission—that these disputes can often be long, drawn-out and lengthy. It is incredibly important, as the Bill becomes law and is implemented, that such recourse should be quick and straightforward, but that where cases remain complex and very difficult to judge, there is still a land tribunal option as well. Lastly, on the Secretary of State being asked to draw up proposals for alternative dispute resolution processes in relation to an order made under section 114 of the Planning Act 2008 about orders granting development consent, could those proposals equally relate to compulsory purchase orders under the Acquisition of Land Act 1981, which was amended by the Planning and Compulsory Purchase Act 2004? There are some large underground cabling routes being developed by the National Grid that do not fall under a development consent order. I would be grateful if the Minister gave an assurance on that.
To conclude, I again congratulate my right hon. Friend on bringing forward another hugely important Bill that will affect the lives of many of our constituents up and down the land and, as he says, will prevent a problem before it comes to fruition. He is absolutely right to highlight the power that Back Benchers can have to solve the issues that are raised with us by constituents before they become a huge problem.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
I congratulate the right hon. Member for North Somerset (Dr Fox) on his success in the ballot and, indeed, on the Bill’s passage through Second Reading, Committee and its remaining stages. I also congratulate him, as I have not put it officially on the record, on the Down Syndrome Act 2022, which I was proud to see become law in support of the work of the all-party parliamentary group on Down’s syndrome.
I thank the other hon. Members who have contributed to the debate; I will make only a few short remarks. I have listened to the proceedings and reviewed the outcome of the Committee, and I recognise and understand the rationale for the Bill. The right hon. Gentleman has laid out some of the concerns that we have as a nation about recognising the need to look at energy transmission and how demand will go up. That is core to an industrial strategy and how we plan for the future, which are big questions for Parliament and for our nation. It is about having processes that look to engage fairly and empower local residents to have a voice.
I will ask some questions of the Minister and reiterate some of the concerns that were laid out by my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) on Second Reading, particularly about some of the unintended consequences that could arise. I am sure that these questions will be considered by the Minister as the taskforce takes forward its work on how the balance of rights and development is achieved.
In that context, my hon. Friend the Member for Stalybridge and Hyde laid out some of those concerns and the potential negative consequences of the Bill on our national mission, which is essential to revolutionise our electricity infrastructure for the long-term prosperity of all our communities, including those in rural areas. Indeed, rural businesses have raised with me the need to look at infrastructure to support development so that they can operate with the same level of success and opportunity as businesses in towns and cities. There are different sides to the question of renewal and development of our infrastructure that we need to take into account and consider in our proceedings.
Like other hon. Members, the right hon. Member for North Somerset also referred to the energy crisis that we are facing. I am sure that he also hears about the cost of energy from local businesses and families. We want to develop our energy security and resilience in this country, and ensure that in the future we do not have the kind of crisis that we have seen in the last year, whereby skyrocketing energy bills have had an impact on our ability to employ people. We need to have a much more sustainable and long-term plan for our energy stability and security, and the price of energy should be a lot lower for all our constituents.
Research released this week by the British Chambers of Commerce shows that almost half of businesses say that paying their energy bills will be very difficult when the current business support package comes to an end in April. That is a matter of concern for all of us, and the Federation of Small Businesses has similarly shown that one in four of its members plans to close, downsize or restructure should energy relief come to an end in April.
We are in a race against time to improve our energy stability and security for the sake of our businesses and the planet. That is why the Opposition have been setting out our plans, and right hon. and hon. Members will have heard the Leader of the Opposition make a speech yesterday. We believe that we need to make Britain a clean energy superpower by 2030. That is relevant to the subject of this Bill, because we should be in no doubt that achieving the urgent mission to have clean power requires us to have a revolution in green energy technologies, to establish storage capacity, to manage peaks in energy demand, to develop new ways of balancing the grid, and to deliver comprehensive improvements to our energy infrastructure in order to expand the grid to new sources of energy.
I am sure the right hon. Member for North Somerset has heard concerns about National Grid having the capacity to expand to new sources of energy, and about seeing the transmission of energy across the country. I have a couple of questions for the Minister, who I am sure will want to ensure that the process does not inadvertently slow down some of the development that we need across all our constituencies, including in rural areas. Will the taskforce look at how improvements can be made to the processes that are currently in place? That was talked about on Second Reading, and we need to make sure that they are delivering in the way that was intended.
Some of the measures in the Bill would require the Secretary of State to draw up proposals for the use of alternative dispute resolution processes, and to look at providing compensation in this respect. Under the Bill, compensation would be paid to landowners. As the Minister has said previously, the small number of cases where there is a dispute over the amount of compensation would be determined by the Upper Tribunal in England and Wales, and by the Lands Tribunal for Scotland. Throughout the passage of the Bill, he has referred to encouraging the use of alternative dispute resolution processes, instead of immediately resorting to the Upper Tribunal.
It is worth considering why the take-up of alternative dispute resolution processes has been lower than we would want to see, and what improvements can be made. Comments that have previously been made, while sympathetic to the arguments, raise questions about the cost and the speed of the processes. We need to look at ways in which we can improve the current system and make sure that it has gone through the process of the taskforce. Perhaps the Minister can outline how he sees the taskforce working, and the engagement of colleagues through that process.
I note, too, that the aforementioned orders—the development consent orders and so on—have the safeguard of being subject to consideration by the Secretary of State. In relation to that, I note that in the energy security strategy released last year, the Government said that to accelerate domestic supplies of low carbon and affordable electricity, the UK will need to expand
“the connecting network infrastructure to support it”.
As a result, we are not fully convinced that this legislation is necessary, or that, if implemented in a particular way, it would not hinder the Government’s own express mission to expand the electricity infrastructure to enable greater use of low-carbon technologies. I would be grateful if the Minister commented on that. At a time of crisis in our energy supply and in tackling climate change, I am sure that balancing all these considerations will be at the top of his mind as well.
In conclusion, while the Bill clearly has positive intentions, I must question whether it is necessary to bring it forward in the way that is currently intended. None the less, the work of the taskforce will be important. It does not need me to say this, but the Government have failed on a multitude of fronts to get to grips with energy security and in tackling the climate crisis. I do hope that there will be ways that we can move forward in the interests of our nation to look at the speed of how we decarbonise our economy, and of how we ensure that we realise the opportunities and ambitions of the nation in going green. I finish by urging the Minister to follow Labour’s lead and to match our ambitions to make Britain a clean energy superpower by 2030 and secure our energy security once and for all.
The Minister of State, Department for Energy Security and Net Zero (Graham Stuart)
Once again, may I thank my right hon. Friend the Member for North Somerset (Dr Fox) for introducing this important legislation? I am afraid that I am not the historian of legislation that I ought to be, so I have no idea whether any Member in history has ever managed to get two private Members’ Bills in a row put into law, but my right hon. Friend is a remarkable man, and he has shown that once again by successfully steering this Bill through. The machine, as ever, always responds by trying to kill it, but such is his dexterity, insight and flexibility that no attempt to kill it is successful, and he finds a way through to deliver something that will be good for everyone. I am pleased that all the amendments were accepted in Committee on 25 January, and I am delighted to offer my support for the Bill as the Minister of State in the Department for Energy Security and Net Zero.
Although the name of my Department may have changed, the position of the Government has not, and I can confirm that the Government are fully supportive of the Bill. One key priority of the new Department is ensuring that the UK is on track to meet its legally binding net zero commitment and support economic growth by significantly speeding up delivery of electricity network infrastructure and domestic electricity generation.
The nation will have been grateful for the speech made by the hon. Member for Feltham and Heston (Seema Malhotra), but it seemed clear from its tone that the Labour party prefers appropriation to the reasonable treatment of people in delivering this. Of course, failing to engage properly with communities will slow down the transformation we need. People thinking they can ride roughshod over communities because they scream, “Climate emergency and urgency” is not the way to do it; we have to go with the grain of communities. We have to explain the narrative. What is our narrative? As my right hon. Friend the Secretary of State has set out, we have a vision of delivering the most competitive, lowest-cost clean energy in Europe by 2035. That will have a transformative effect, not only in terms of our leading the world in reducing emissions, as we have done to date under this Government, but in enabling the re-industrialisation of the north, Scotland and Wales, with all the economic benefits that come with that. It is this Government, not the Labour party, who have delivered. When Labour left power in 2010 only 7% of our electricity came from renewables, but now it is nearly half. We are going further and faster, but making sure we do it in a way that works with the grain of communities, because if we ride roughshod over them, they will come back and will slow us down. To answer the hon. Lady’s point, this Bill will not slow down what we are doing; it will enable us to move at the speed required and make sure that we do so in a way that retains community support.
The Bill is about the building of network infrastructure, and the planning and consenting process. I thought it would be helpful to set out the Government’s commitments in this area and the work that is already under way. It currently takes about 12 to 14 years to build or reinforce new onshore electricity transmission network infrastructure, from the initial planning to the final completion and commissioning. The development of new transmission infrastructure is often on the critical path for the connection of new generation. The wonderful and extraordinary new generation that we have helped bring about, and are going to bring about in the future, is of no use if we do not have the infrastructure to get the electrons to where they need to go. The current position offers an unacceptable timeline when the electricity network is a critical enabler of our domestic energy production targets and our decarbonisation targets. We committed in the British energy security strategy to significantly reduce the timelines by about three years for delivering onshore transmission network infrastructure. We aspire to halve this end-to-end process by the mid-2020s. So we are working with developers and supply chains to increase pipeline visibility and certainty, to help accelerate the procurement.
Work is already under way to improve the strategic planning of network infrastructure, including the holistic network design. We are also improving the planning and consenting process. The Department for Levelling Up, Housing and Communities published its nationally significant infrastructure project reform action plan just yesterday, and our consultation on the revised energy national policy statements is imminent. Additionally, work is ongoing to improve work with communities and to expedite Ofgem’s regulatory approval process, but we recognise that more needs to be done. That is why in July last year my Department appointed Nick Winser CBE to the role of electricity networks commissioner. He is advising Government on how the development process for transmission infrastructure can be accelerated. He has extensive experience in electricity networks and is currently chair of the Energy Systems Catapult, which provides technical, commercial and policy expertise to drive innovation across the whole energy system. The commissioner is tasked with looking at where further improvements can be made beyond what is already in train across Government and will be looking at providing recommendations on crucial issues such as strategic network planning, planning consent and regulatory approvals. His work commenced in September and he continues to work intensively with stakeholders across the development process, within Government and across industry so that his work can deliver a valuable contribution to my Department’s aims. He hopes to submit his final recommendations to the Government for review in June. The commissioner is working in collaboration with the offshore wind champion, Tim Pick, and the offshore wind acceleration taskforce, given the importance of electricity networks to the offshore wind deployment we need. We are also working with Ofgem to speed up its regulatory approvals process. So in December, Ofgem published its decision on accelerating strategic transmission investment, which includes exempting certain strategic projects from being subject to competition. That provided greater clarity and certainty to industry on which projects should be progressed, and by whom.
Communities that host network infrastructure are playing a vital role in ensuring a cheaper, cleaner and self-sufficient energy supply in Britain. It is therefore only right that they benefit from developments in their area. Although benefits to communities are already offered by industry, now is the right time, given the scale and rate of change to which hon. Members have referred, to review how community benefits are delivered. We intend to explore whether there should be a more standardised approach, or whether providing a framework or benchmark offers more flexibility that would be of benefit to the distinct needs of individual communities and projects. We will consult in the coming weeks on options for community benefits regarding onshore network infrastructure.
The Government announced a review of the energy national policy statements to ensure that they reflect the policies set out in the energy White Paper net zero strategy and the British energy security strategy, and that we continue to have a planning policy framework that can deliver the investment required to build the infrastructure needed to ensure an independent, secure energy supply as we transition to net zero. The draft energy national policy statements were subject to parliamentary scrutiny, including by the Business, Energy and Industrial Strategy Committee, which published its report and recommendations on 25 February. When analysing the responses to that consultation, we will take account of those and of any other resolutions as we go forward.
Let me talk now about the Bill. I have set out what we are doing to accelerate the build of network infrastructure, but as I have said, new network infrastructure must be built in a way that protects the rights of local landowners and communities. That is why the Bill has the Government’s support. We believe that it can be a bulwark for the vital transformation that is needed for our electricity network.
Transmission owners need access to private land when installing network infrastructure, and in that situation, the landowner is entitled to compensation. We recognise that in cases in which the landowner and the transmission owner cannot agree on compensation, challenging through the upper tribunal can be expensive for landowners. The Bill presents an opportunity to address that by ensuring access to alternative dispute resolution processes, which can play such a crucial role in offering a quicker and cheaper route to resolving disputes.
We need the right expertise and the right balance of views to develop proposals, as my right hon. Friend the Member for North Somerset said. That is why we will establish an alternative dispute resolution taskforce to take the work forward. I have been asked repeatedly and quite rightly about timelines, and that taskforce will be taken forward this year. Its work will complement the ongoing work within my Department. We are already reviewing the land rights and consents processes for network infrastructure. We published a call for evidence in 2022 and we are reviewing the responses.
To answer my right hon. Friend’s question on whether the scope of the proposals will extend to the distribution network and to the refurbishment of existing infrastructure, the Bill sets out only which cases must be in scope of the proposals. The Secretary of State can decide whether to extend the scope to other electricity network-related cases, including the distribution network and, indeed, refurbishment where a DCO is not in place. We envisage that the taskforce will make a recommendation on scope to the Secretary of State.
Amendments have been made to the Bill since Second Reading. I will now—briefly, I hope—explain the amendments and their purpose. Amendment 1 removed clause 1, which was replaced with new clause 1. The new clause focuses the proposals on electricity-related cases rather than gas-related cases. The new clause also moves away from proposals to establish a new mechanism to proposals to encourage use of alternative dispute resolution processes. That means that we can consider existing practices and whether they can be strengthened to meet the aims of the Bill, as well as whether new mechanisms are required. The new clause retains the key factors that the proposals must consider: that decisions are enforceable and that the process is affordable and accessible, as my right hon. Friend so fluently laid out.
Amendment 2 simply replaced “applies” with “extends” for the subsection dealing with territorial extent in clause 2 —a minor technical amendment to reflect more appropriate terminology. Amendment 3 changed commencement to two months after Royal Assent, bringing the Bill in line with standard commencement procedure for primary legislation. In line with the focus on electricity transmission infrastructure, amendment 4 removed “gas” from the Bill’s short title in clause 2. Finally, amendment 5 edited the Bill’s long title to reflect its contents in clause 1.
I thank all hon. Members who have participated at the various stages of this Bill’s progress through this place. Supporting this Bill is in line with our ongoing objective of ensuring that landowners have access to a clear, fair, affordable and enforceable system for dispute resolution. I am so grateful to my right hon. Friend the Member for North Somerset for introducing the Bill and for working so constructively with the Government to ensure that were able to deliver on this important issue. I hope all Members will agree that the |Bill should now move to the other place, where I hope it will gain the support of peers as it has gained the cross-party support of Members here.
My hon. Friend the Member for Aylesbury (Rob Butler) talked about David and Goliath and about the need to ensure that we have a system of infrastructure that works fairly and equally for people, and reflected on his experience in his own constituency. My hon. Friend the Member for Buckingham (Greg Smith)—there is something of a Buckinghamshire massive here today— talked about solar farms and the need for infrastructure reinforcement, and pressed me on the timeline. I hope I gave a suitable answer.
I am grateful to my officials, those in the Box and those outside: Daniel Boorman, Charles Grant, Alex Chittenden, Louise Sun and Susanna Isola from my private office. I look forward to working with my right hon. Friend the Member for North Somerset to support the passage of the Bill, which I am confident will not only introduce a fairer system but aid rather than break the fast change that we need to deliver in order to have the most competitive energy system in Europe in the 2030s, which I think will underpin the return of the UK—quite properly—to its position as the premier economic power in Europe. I believe that energy is often the foundation and the secret of economic success.
Dr Fox
With the leave of the House, Mr Deputy Speaker.
Let me first thank those who have spoken today: my hon. Friends the Members for Aylesbury (Rob Butler) and for Buckingham (Greg Smith), and—briefly—my hon. Friend the Member for Watford (Dean Russell), as well as the hon. Member for Feltham and Heston (Seema Malhotra), who not only spoke for the Opposition but was, indeed, the entire Opposition throughout the debate. I thank the Government for their support; I particularly thank my right hon. Friend the Minister, who has been hugely helpful at every stage of the Bill’s progress in ensuring that its aims were improved in Committee, and the officials who helped us to get the appropriate draft into the appropriate place. I thank those who served on the Committee: as always, they were volunteers rather than pressed MPs, and I am grateful to them for their support.
I also thank the outside groups who have written to me about the Bill. One communication, which I think sums up the support I have received, is from Suffolk County Council, which said:
“As I am sure you are aware, Suffolk and the wider eastern region are subject to multiple electricity transmission projects, both overhead pylons and buried cables. Given the significant imbalance of power between National Grid and individual landowners, the proposals outlined in the Bill, to provide an effective, accessible, independent, and low-cost mechanism, for the arbitration of disputes between individuals and National Grid, is essential.”
It could not have been summed up better.
Most of all, however, I want to thank my constituents in North Somerset for their tenacity in dealing with the problems thrown up by the current system. It is their resistance and determination to secure a better resolution for themselves that has led to the Bill, and that will be extended throughout the country.
In another debate earlier today, the hon. Member for Bolton South East (Yasmin Qureshi) said that she had to wait 11 years for a private Member’s Bill. What a beginner! It took me 29 years to get my first private Member’s Bill, and I am extremely honoured to have had two Bills in consecutive parliamentary Sessions. I think that that is something worth waiting for, and something that might weigh on the minds of others.
Let me finally mention my hon. Friend the Member for Castle Point (Rebecca Harris), for whom I have great respect and not a little affection. As the House will know, when the ballot for private Members’ Bills is being held not far from here, the Whips have a habit of calling us up and reminding us to put our names forward for the next ballot. May I say very gently to my hon. Friend that this time she might want to save herself a phone call?
Question put and agreed to.
Bill accordingly read the Third time and passed.
Mr Deputy Speaker (Mr Nigel Evans)
Congratulations, Dr Fox. We look forward to next year’s entry for the private Members’ legislation.
Electricity Transmission (Compensation) Bill
Monday 27th February 2023
(1 year, 8 months ago)
Lords ChamberRead Full debate Electricity Transmission (Compensation) Act 2023 Read Hansard Text Amendment Paper: Public Bill Committee Amendments as at 25 January 2023 - (25 Jan 2023)
Electricity Transmission (Compensation) Bill
Friday 21st April 2023
(1 year, 7 months ago)
Lords ChamberRead Full debate Electricity Transmission (Compensation) Act 2023 Read Hansard Text Watch Debate Amendment Paper: Public Bill Committee Amendments as at 25 January 2023 - (25 Jan 2023)
Lord McLoughlin (Con)
My Lords, this Bill comes to your Lordships’ House having completed its stages in the House of Commons. It was taken through the House of Commons by Dr Liam Fox and is based on his experience in his own constituency of what I think is a flaw in the regulations, which I will come on to say a little more about later. It has to be said that this is the second Private Member’s Bill in two years that Dr Fox has managed to steer through the Commons; the other one, the Down Syndrome Act 2022, was also successfully steered through your Lordships’ House. He seems to be having more success in taking legislation through from the Back Benches than he managed when we were both in the Cabinet together; I congratulate him on that.
The purpose of the Bill is to require the Secretary of State to lay before Parliament proposals for the use of the alternative dispute resolution—ADR—process to determine compensation in electric-related land acquisition cases. The intention is that the proposal will encourage and facilitate the use of the ADR process, thereby helping parties in dispute to avoid having to take their case to the Upper Tribunal (Lands Chamber). The Bill provides that there should be proposals for ensuring that any determinations are enforceable so that the outcome is binding on an electricity network operator.
I realise that one concern is that this Bill may somehow lead to delays in certain cases. I do not think that it will. Having to take a case up to the Upper Tribunal is a lengthy and expensive process; it therefore operates against an individual who feels that they have a complaint. Nobody is keener than me to see national infrastructure projects make progress and not be delayed but, when big national infrastructure proposals are coming forward, one must recognise the blight of them and the impact that they may have on individuals. This is a correcting Bill: it will bring in a system that is there for other availabilities. The Bill also requires that there should be proposals for ensuring that the ADR process operates independently and that
“the processes are accessible to landowners without undue difficulty or expense”.
Anybody who reads through the Second Reading debate held in the House of Commons in November will see there some of the cases that have caused Dr Fox and other Members of the Commons great difficulty as far as their constituents are concerned. As I say, this Bill does not seek in any way to delay infrastructure projects, but it puts a duty on the company that is involved to treat the people whom it affects in a fair way. The Bill has vocal support from the NFU because it has seen what it will do for some of its members.
I have some questions. I hope that, in her response to me, my noble friend the Minister will be able to give some indication of what the timescale will be for the creation of a task force; I know that her officials have been looking at what the consequences of the Bill will be. Also, can the Government provide further detail on how and when the composition of that task force will be decided? I realise that those questions possibly anticipate the Bill’s passage into an Act of Parliament. It is right, however, that reassurance on big issues of national infrastructure is given to those people who are directly affected that they will be treated fairly. That is really the main aim of this Bill.
Where electricity transmission takes place, this Bill will provide the same sort of rights that are available in other big national infrastructure projects. For some reason, electricity has been left out because of its national significance. Nobody doubts that— nobody questions the necessity of this infrastructure being taken forward—but people should be treated fairly by operators when they are seeking these acquisitions. I beg to move.
Baroness Walmsley (LD)
My Lords, this Bill addresses a perfect example of where individual rights come up against the duties and responsibilities of another organisation and an aspect of the public good. On the one hand, we have the Government seeking to achieve the transition to a net-zero energy system and the duty of National Grid to carry out its role on, over and under the ground to achieve that; that is a common good. On the other hand, we have the rights of the owners of land to enjoy whatever that land provides: an income, a home, food, enjoyment of the environment, a contribution to biodiversity, et cetera. All these things have a monetary value—and, indeed, other values too, which should not be ignored. So how do we reconcile these two demands on land?
We already have a lot of work going on to develop a national land strategy. That is important, given that we would need two sets of these islands to provide all the food, homes, infrastructure, industrial land, renewable energy, public spaces, protected biodiversity and leisure facilities that we all want. Difficult choices and balances have to be made. Add to that the need to expand and strengthen the national grid, in order to produce more renewable energy and transmit it to where it is needed so that we can exchange fossil fuels for net-zero electricity, and you have a problem.
What are the shortcomings of the existing system? As I see it, it does not provide equality of arms between small landowners and large public bodies. It also takes too long and costs too much. It currently operates at a time when the courts are overrun with a major backlog of cases. It needs to be replaced, as Dr Liam Fox said in another place, by something that is accessible, affordable, independent and enforceable. This Bill is an attempt to do that. I would also add “flexible” to take account of the changing value of land and land of different quality.
The questions that arise for me are fourfold: whether the new alternative dispute resolution system can be fairer to landowners and give them a fair crack of the whip, rebalancing the current imbalance between them and National Grid; whether the outcomes of the new system will give them justice while allowing the common good of a stronger electricity distribution system to be achieved; whether the new system can achieve that speedily and at smaller cost; and, finally, whether the system can take account of national priorities on land use. For example, we have recently been focusing—for very good reason—on the need for greater food security and energy security. Do the Government plan to start all over again with the new ADR task force or to incorporate the existing knowledge and capability? How can we be sure that the new system is designed adequately to take account of the views of the little guy—the landowners? How can we be sure that the outcome is enforceable and that the last resort of going back to the Upper Tribunal is still open to those who are not happy with the results of ADR?
If we get this right, it can contribute to the achievement of net zero. If we get it wrong, we are doomed to face more costly wrangling for years to come. Which is it?
Baroness Blake of Leeds (Lab)
My Lords, I thank the noble Lord, Lord McLoughlin, for sponsoring the Bill which, as he rightly said, was introduced by Liam Fox in the other place. The main purpose of the Bill is to require UK Ministers to lay proposals before Parliament for the use of alternative dispute resolution processes in England and Wales, to determine levels of compensation in electricity-related land acquisition cases.
We completely agree with the need to improve the UK’s electricity infrastructure so that the UK can expand the grid to incorporate new energy sources and therefore achieve the ambitions around our net-zero objectives. From talking to all the different bodies connected with this area, particularly around infrastructure, I think that this issue is recognised as one of the major infrastructure challenges that the country is facing—how we scale up the grid to achieve our ambitions.
As outlined very clearly by the noble Baroness, Lady Walmsley, achieving the correct balance is paramount, and we need to find that balance between landowner rights and infrastructure development. As the noble Lord, Lord McLoughlin, acknowledged, there are serious concerns that the Bill could have unintended consequences, particularly around delaying infrastructure development and subsequently providing businesses with uncertainty. We all know how damaging uncertainty is in this sphere. The noble Lord, Lord McLoughlin, is laughing, because we have had very close engagement on other major infrastructure projects, which we will not name in this debate. Building investor confidence will be key to encouraging investment in this critical area.
I seek clarification from the Minister and will pose some questions for consideration at this stage. It is worth considering why the take-up of alternative dispute resolution has been slower than we would want to see, and how we can make the improvements necessary, perhaps without waiting for the consequences of this Bill passing. There must be measures we could take now to improve the uptake. Surely the preferred route is to go through mediation rather than into the courts, but what assessment has been made of this?
Last year’s energy security strategy set out the need to expand the connecting infrastructure to support the acceleration of electrification. Again, the central question that we have is whether the Government feel that this legislation could risk slowing down the process and therefore hindering the Government’s core mission in this area. We know that the proposals on ADR will not be drawn up until a later date, but the intention is still to encourage its use. But if that fails to enforce any determination, could there not be a risk that knowing that enforced outcomes will be binding, even if one party is not happy, discourages the use of ADR?
As I have said, it should be a positive that, under ADR, disputes will be settled out of court, but what are the Minister’s views on the extent of this benefit? Can she quantify the benefits of ADR processes, whether in terms of speed, cost or satisfaction of outcome? We have heard it eloquently expressed that this is a complex area. We need to be very sensitive to the needs of all parties involved. One of the criteria for what ADR procedures should address is that they are accessible to landowners without undue difficulty or expense. Does the Minister have any insight as to how they envisage guaranteeing this?
What is the status of the ADR task force? Is a serious attempt being made at this moment in time to look at the existing ADR system and to see how immediate improvements and therefore benefits can be made?
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, I thank my noble friend Lord McLoughlin for bringing forward this Bill, which has already had a successful passage through the other place. I also thank noble Lords from across the House for their valuable contributions to today’s debate.
The Government are pleased to support this important Bill, which helps to ensure that landowners will have access to a clear, fair, affordable and enforceable system for dispute resolution. The measures in the Bill will support the vital transformation needed for our electricity network. We need to expand the grid at an unprecedented scale and pace to deliver more clean, affordable power and to increase our energy security, with electricity demand potentially more than doubling by 2050. In March the Government published our Powering Up Britain: Energy Security Plan, building on our commitment, made in the British Energy Security Strategy, to accelerate the delivery of transmission network infrastructure by at least three years, with an ambition to cut delivery times in half.
However, we still firmly believe that new network infrastructure must be built in a way that protects the rights of local landowners and communities. That is why, alongside our energy security plan, the Government have published a consultation on providing benefits to communities hosting transmission network infrastructure, to recognise the vital role that these communities play in supporting the delivery of cheaper, secure and low-carbon energy. Separately from the focus of the community benefits consultation, we are aware of the issues that may arise between landowners and transmission network owners, such as national grid electricity transmission, when installing network infrastructure.
Where transmission owners need access to private land, landowners are entitled to compensation, and in a small proportion of cases where compensation cannot be agreed on, this may cause disputes and raise challenges via the Upper Tribunal, which can be expensive and time-consuming for landowners. The Bill presents an opportunity to address this issue by ensuring access to alternative dispute resolution processes, which can play such a crucial role in offering a quicker and cheaper route to resolving disputes. It is very encouraging to hear the support across this House from the two noble Baronesses on the Front Benches; I will address some of the specific points shortly.
First, I shall cover the key reasons why the Government are supporting this legislation. The Bill was first introduced in the other place by my right honourable friend Dr Liam Fox. It was a response to his constituents raising concerns about disagreements with the transmission operator over land in the path of overhead transmission lines that were built to connect Hinkley Point C nuclear power station to the grid. The cost and risk of taking the case to the Upper Tribunal meant that some landowners would be reluctant to challenge compensation offered by the transmission operator. Dr Liam Fox acknowledged the importance of energy infrastructure development but said that more should be done to protect landowners involved in compensation disputes with network operators.
The Bill requires that government bring forward proposals on alternative dispute resolution processes in cases where land or land rights have been acquired for the building of electricity transmission network infrastructure and there is a dispute about compensation. The intention is that proposals would encourage and facilitate the use of alternative dispute resolution, thereby helping disputing parties to avoid having to take a case to the Upper Tribunal.
Clause 1 requires the Secretary of State to lay before Parliament proposals to improve access to alternative dispute resolution processes in electricity-related land acquisition cases. Proposals must ensure that alternative dispute resolution processes are available that could determine the amount of compensation paid to landowners and that these processes are enforceable, accessible and affordable for landowners. The processes must be managed in a way independent of the landowner and the transmission owner. Proposals must be set out in a report that will be laid before Parliament by the Secretary of State, who must consult any party they feel is appropriate.
The second clause clarifies the extent and the commencement date. The Bill extends to England, Wales and Scotland, and comes into force at the end of the period of two months, beginning with the day on which it is passed. However, in practice, the Bill will affect Scotland only in limited circumstances, as it applies to cases where a development consent order has been granted for electricity transmission infrastructure under the Planning Act 2008. However, the development consent order process does not apply in Scotland, except under limited circumstances that do not relate to electricity transmission.
As for the ongoing work to establish an alternative dispute resolution task force, the Government committed to establish a task force to bring forward proposals for alternative dispute resolution related to the Bill. My noble friend Lord McLoughlin asked for more detail on the timing and composition of the task force, as did the noble Baroness, Lady Blake. I confirm that the task force will be established this year; the department is engaging with network operators, representatives of landowners and experts in acquisition of land and alternative dispute resolution to ensure that it has the appropriate membership. The work of this task force will complement work already going on to reform land rights and consent processes for network infrastructure. The Government published a call for evidence in summer 2022 to establish how the land rights and consent processes affect stakeholders and to inform whether reform is required. The Government are considering all responses and plan to publish a response to the call for evidence this year.
Turning to other points made by noble Lords, the noble Baroness, Lady Walmsley, rightly pointed to the competing interests in land use and the inequality of arms between landowners and the developers of infrastructure. The Bill seeks to address this and will be a speedier and less costly recourse for landowners, but they will still be able to seek redress through the Upper Tribunal, should they choose.
Strategic planning plays an important role in delivering vital network infrastructure, initially through the holistic network design, which sets out the key strategic transmission infrastructure required to connect up to 50 gigawatts of offshore wind by 2030. I reassure the noble Baroness, Lady Blake, that the Government are still committed to accelerating the rollout of grid infrastructure and associated economic growth, levelling up and net-zero opportunities. We are also committed to ensuring the rights of local landowners and that communities’ rights are protected. This has been made clear, for example, through our recent publication of the energy security plan.
It is the role of the task force to develop proposals, including consideration of how to ensure the process does not delay the implementation of new infrastructure. Furthermore, in response to the noble Baroness, Lady Blake, access to enforceable alternative dispute resolution will provide an alternative route to the Upper Tribunal. This should save time and money for parties involved. The task force will develop proposals and the Government will consider how we assess their impact, including their timing and cost. Proposals that standardise access to alternative dispute resolution will increase awareness of existing routes, encourage uptake and avoid cases having to go to the Upper Tribunal.
To conclude, the Bill is vital to ensure that landowners have access to a clear, fair, affordable and enforceable system for dispute resolution. The Government continue to support the Bill and we are glad to see the level of support across this House throughout today’s debate. Again, I thank my noble friend Lord McLoughlin for taking this important legislation through the House. The Government wish it a speedy passage.
Lord McLoughlin (Con)
I am very grateful to my noble friend for her response on behalf of the Government on the Government’s attitude to the Bill. It is very encouraging. This area was left out as far as the ADR procedure is concerned and it will be very welcome.
I well understand the position that the noble Baroness, Lady Blake, took on not wanting to see delay. We worked very closely, when she was leader of Leeds City Council, on a number of infrastructure issues, and were often frustrated by the amount of time taken to get decisions and see them implemented. I fear that timetable has moved even further from when we were directly involved with some of the big infrastructure issues that affected her city of Leeds. I thank the noble Baroness, Lady Walmsley, as well for saying that, if anything, this could help speed up and not delay, because going to the upper lands tribunal is incredibly complicated and expensive. Big landowners could do it but smaller landowners did not feel that that opportunity was available to them.
I think this is moving in the right direction. It is in nobody’s interest to slow it down. I very much welcome today’s debate and look forward to seeing the Bill get further along the legislative framework.
Electricity Transmission (Compensation) Bill
Tuesday 9th May 2023
(1 year, 6 months ago)
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Lord McLoughlin (Con)
My Lords, I understand that no amendments have been set down to this Bill and that no noble Lord has indicated a wish to move a manuscript amendment or to speak in Committee. Unless, therefore, any noble Lord objects, I beg to move that the order of commitment be discharged.
Electricity Transmission (Compensation) Bill
Friday 19th May 2023
(1 year, 6 months ago)
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Lord McLoughlin (Con)
My Lords, it has been a privilege to sponsor this particular piece of legislation through your Lordships’ House. It started life in the House of Commons, led by Dr Liam Fox, Member of Parliament for North Somerset. In fact, it is the second Private Member’s Bill that Dr Fox has piloted through the House, the previous one being last year’s Down Syndrome Bill, now Act.
This Electricity Transmission (Compensation) Bill comes on the back of very personal experience that he has had within his own constituency with major infrastructure projects—in particular, Hinkley Point—and the problems caused to landowners when transmission cables are necessarily laid over their land. The Bill sets out an alternative dispute resolution—ADR—procedure. ADR is currently available but is not a legal requirement, and it should become a legal requirement. This is a small piece of legislation that rights a wrong. I thank Members of your Lordships’ House for their support and also thank the National Farmers’ Union.
Baroness Blake of Leeds (Lab)
My Lords, I will speak briefly to thank the noble Lord, Lord McLoughlin, for his explanation of the Bill. We completely agree with the need to improve the UK’s electricity infrastructure; we need to be able to expand the grid to enable new energy sources to come online. However, we emphasise the need for the correct balance to be found between the rights of landowners and infrastructure development.
As I laid out at Second Reading, we remain to be convinced that the Bill is necessary. Our concern here, if we have one, is that the Bill may hinder the Government’s plans to expand electricity network infrastructure. We do not want to see unintended consequences that could generate uncertainty among the business community.
However, with those comments, I commend the noble Lord, Lord McLoughlin, and Dr Liam Fox, the Bill’s sponsor in the other place, for raising this very important issue so that we can consider and debate it.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, I thank my noble friend Lord McLoughlin for taking the Electricity Transmission (Compensation) Bill through this House. I also thank noble Lords from across the House, including the noble Baronesses, Lady Blake and Lady Walmsley, for their valuable contributions on this Bill through its passage.
The Government are pleased to support this important Bill. The measures in it will help ensure that landowners have access to alternative dispute resolution in cases where their land, or rights to access their land, have been acquired for the build of network infrastructure. This will help landowners avoid having to take a case to the Upper Tribunal, which can be an expensive and lengthy process. While I acknowledge the concerns that the noble Baroness, Lady Blake, just raised in terms of unintended consequences, the intention of the Bill is to help speed up resolution where there is dispute. It will help to ensure that we strike the right balance between protecting the rights of landowners and the urgent need for network infrastructure build in this country.
To implement the measures in this Bill, the Government have committed to establishing an alternative dispute resolution task force in 2023. The task force will be responsible for developing proposals and making recommendations to government. The Government will continue to engage with a broad set of stakeholders, including network operators, representatives of landowners and experts in acquisition of land and alternative dispute resolution to ensure that the task force has the appropriate membership.
To conclude, bringing forward this new Bill will ensure that landowners have access to a clear, fair, affordable and enforceable system for dispute resolution. The Government are pleased to support these new measures and we have been glad to see the level of support for them across both Houses through the passage of this Bill. I again thank my noble friend Lord McLoughlin for his sponsorship of the Bill as it has moved through this House. I also thank my right honourable friend Dr Liam Fox for his sponsorship of the Bill in the other place and his hard work on the matter.
Lord McLoughlin (Con)
My Lords, I thank my noble friend for her remarks and for a better and more forceful summary of the Bill than mine. I completely understand the point that was made by the noble Baroness, Lady Blake. I am one of the last people in the House who would ever want to see major infrastructure projects held up, but I do think it is essential and right that people have a fair opportunity to make their case and have a simpler way of seeing a resolution to a dispute, which I believe this could lead to.
I end by thanking my noble friend the Minister for all her help and support and the tremendous work that she has done on the Front Bench for us.
Royal Assent
Wednesday 24th May 2023
(1 year, 6 months ago)
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