Planning and Infrastructure Bill

(Limited Text - Ministerial Extracts only)

Committee stage
Monday 1st September 2025 Lords Chamber

Moved by

[Baroness Taylor of Stevenage]

72: Clause 16, page 22, leave out lines 12 and 13
Member’s explanatory statement
This amendment is a drafting correction which would remove the definition of “qualifying distribution agreement” from clause 16. The definition is unnecessary because the term is already defined for the purposes of clause 16 in clause 13(8).

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[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, Amendment 72 in my name seeks to leave out lines 12 and 13 on page 22 of the Bill, removing the additional definition of “qualifying distribution agreement”. It is a straightforward technical amendment. Its purpose is to tidy up the drafting of the Bill by removing a definition that is no longer required. The term “qualifying distribution agreement” is already defined in Clause 13(8), following other changes made during the passage of the Bill. The amendment will help ensure that the legislation is clear, coherent and free from unnecessary or redundant definitions. It will not alter the substance or effect of the policy but support the overall clarity and workability of the Bill.

I hope that the Committee will support this amendment. I look forward to the debate on the other amendments in this group; I will reserve comment on them until I make my winding-up remarks. I beg to move.

[Lord Lansley (Con)]

My Lords, I am grateful to the Minister for being so brief and to the point and for allowing me the opportunity to explain the purpose of the other amendments in this group in my name, which are Amendments 73 to 76. Like the Minister, I look forward to hearing from the noble Earl, Lord Russell, about grid capacity in his Amendment 79. I remind the Committee of my registered interest as chair of development forums in Cambridgeshire and Oxfordshire.

My amendments relate to Clause 17, which contains a power to give Ministers the opportunity to designate strategic plans for the purposes of the connection reforms that are taking place in relation to the transmission and distribution networks. I suppose it would be helpful—not least because it will connect to what the noble Earl, Lord Russell, will raise—for me to remind the House that this process is under way. In effect, it was commenced by the Connections Action Plan under the previous Administration in November 2023. A simple way of expressing it is by saying that there was a lot of commitment to future substantial increases in generating capacity in a range of technologies, which were increasingly forming a queue to book their potential connection to the transmission or distribution networks. However, there was considerable risk related to whether those projects would be delivered on time or at all.

The volume of such commitments made it very clear that a significant proportion of them would not be viable, because there would be an excess of what was required. The numbers varied, but I think the latest figure was something like 714 gigawatts of grid capacity relative to about 500 gigawatts of demand. Instead of the old regime, which can be characterised as “first ready, first connected”—namely, those who were planning to provide capacity simply booked a place in the queue and then, when they were ready, they were given a right to be connected—the intention now is for there to be strategic planning behind the process leading to the net-zero objectives in 2030, which were published under the Government’s Clean Power 2030 Action Plan last December.

Since then, Ofgem and the National Energy System Operator have been working on this. For the avoidance of doubt, references in Clause 17 to the independent system operator and planner, ISOP, are actually to the National Energy System Operator, or NESO. Ofgem agreed on its methodologies, I think in April, and has now, after consultation, approved the processes. I think that we are in a position—but the Minister can correct me if there is more detail—where we are anticipating, potentially in a matter of weeks, the first allocation of commitments by Ofgem to what is known as Gate 2. As I understand it, Gate 2 means that Ofgem will say that it is committed to these projects and that they will be connected to the transmission or distribution networks when they are ready and because they are needed.

There are two differences with that approach. First, the queue will be straightforward; it will be not just “first ready, first connected” but “first ready, first needed, first connected”. Secondly, the two criteria that Ofgem will apply, in the first instance, will be that there is a clear timetable—with milestones, which, if they are not met, may cause such projects to lose their place in that queue—and that they will be connected when they are needed. There is therefore a direct relationship between the strategic planning for electricity capacity in a range of technologies and the projects that NESO agrees will be brought in to supply the grid at given times in the future.

If I understand it correctly, the present strategic objective is set out in the connections annexe to the Clean Power 2030 Action Plan. It sets out a range of technologies, and capacities that are required in those technologies, and then breaks them down by regions across the country. There is therefore a plan to which the alignment should relate. The Explanatory Notes state that the designated strategic plan according to which the National Energy System Operator should work may be, for example, the Clean Power 2030 Action Plan, so we can see the relationship with that.

The Explanatory Notes do not say this, but the Delegated Powers Committee’s memorandum from the department did: in addition, the designated plans are intended to include the strategic spatial energy plan intended to be published in 2026. That is in addition to what is in the clean power plan, which has 2030 targets and ranges for its potential capacity requirements through to 2035, and will extend that to 2050 so that there is a longer strategic alignment between the people who are making substantial investments and the commitment on the part of the grid to take that supply into the grid.

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[Earl Russell (LD)]

My Lords, I remind the Committee of my recorded register of interests: I am a non-executive director and a board member of the Water Retail Company. I will speak to my Amendment 79 and respond to the amendments on connections reform.

Amendment 79 calls on the Government to insert a new clause into the Planning and Infrastructure Bill under the heading of “increasing grid capacity” and proposes that, within three months of the Bill becoming law, the Secretary of State should publish a plan to achieve two simple yet crucial objectives: to reduce the cost and the time taken for new connections to the electrical transmission or distribution system; and to permit the development of local energy grids. The need for this amendment should be beyond reasonable doubt. I am concerned that, if these reforms are not made, we will not be capable of meeting the Government’s stated objective, which we share, to achieve clean power by 2030—a key step on our overall climate change and energy targets.

To decarbonise, we must electrify. Electricity demand is set to rise by at least 11% before 2030 and at least double by 2050. How we heat our homes, how we travel and how we power our industry must all be by electricity, which demands wiring everything up and ensuring that both low-voltage and high-voltage networks are fit for purpose. I would argue that this is one of the biggest societal energy changes since the Industrial Revolution and is only some five years away, which is merely the blink of an eye in planning terms. At present, the delay in getting grid connections is one of the greatest obstacles to decarbonisation, to developing new housing and industry, and to increasing our economic output as a country. Our businesses and communities are waiting seven to 10 years—even longer in some cases—before they can secure the right to feed clean energy into the system or to make power connections. Developers in grid hotspots—or “not spots”, potentially—are reporting connection waits of several years as being typical.

We need to be prepared and to get this stuff done. My amendment is designed to help do that. If we are going to be a leader in renewable energy and to get all the renewable energy in place, the grid connection system needs to be reformed. I very much recognise the Government’s recent reforms to try to update the grid connection system. In April 2025, working alongside Ofgem and the National Energy System Operator—NESO—the Government announced reforms to prioritise clean energy and infrastructure for grid access, aiming to eliminate so-called zombie or speculative projects and to fast-track the shovel-ready schemes that are set to go. The new target model option, TMO4+, introduces stricter queue management, milestone targets and progressive penalties for lagging projects, as well as prioritising the projects that are crucial for clean power and our overall economic growth.

These reforms are intended to help deliver that 2030 clean power plan, unlocking up to £15 billion in investment and supporting a more responsive and modern grid system. These are all steps in the right direction, and we definitely welcome how the Government have made progress since they came to power, but I feel that more needs to be done, hence the amendment that I put forward here. I worry that, if we do not do more, we will simply not be ready and will not hit these targets.

The second element of my amendment touches on local energy grids. Local energy grids are still in their infancy, but my party very much supports them. They empower our local communities and help them to benefit from the clean power revolution that is coming. Their efforts are quiet, modest and determined, and I want this Government to do more to support them. I believe they are essential in galvanising public support and helping the Government to take communities with them on this journey. Alongside many others across both Houses of Parliament, I fought to get community energy into the Great British Energy Act and I am delighted to have done that.

However, more help is needed to get this stuff over the line. Local energy grids are important and will benefit the country. They help to make the grid more secure and resilient. They reduce the need for transmission and the loss of transmission time, and they reduce the need to invest in the high-voltage grid overall. They take our communities with us and bring support. We all need that: this Government need that and we need that. Our communities should benefit from the revolution that is taking place. My amendment is designed to help and to support the Government. My hope is that the Government can support this amendment, or it would be appreciated if they brought forward an amendment on Report.

I turn briefly to the other amendments in this group. I recognise that the Minister has put forward a drafting amendment and we are fine with that. On Amendments 73 to 76 in the name of the noble Lord, Lord Lansley, we recognise what they are about and welcome the questions that the noble Lord raises. These are important issues, which we should discuss in Committee, about the replication of policy and policy statements, and how those systems are set up and will work in practice.

However, as we go into this rapid period of change, my worry is that, if his amendments are passed, we could end up with a system that is centralised more in Westminster, is less responsive to the changes that need to happen at pace and at scale and is not as well connected to the communities and those on the ground facing change. Those would be my general concerns with those amendments, if agreed, but I look forward to the Minister’s response and I think it is important that those amendments were raised. I look forward to further debate on this group.

[Baroness Neville-Rolfe (Con)]

My Lords, connections reform is very important if we are to give the grid capacity. The noble Earl, Lord Russell, is right in wanting to speed things up and to ensure that these connections are not too costly. That matters whether you want more renewable energy in the mix or would prefer—as I would—to continue with a mixed supply, including better and continued use of North Sea oil and gas.

However, the fact is that the grid is not resilient and everything is too slow. We have too many layers of decision-making, too much strategising, too many bureaucratic rules and, therefore, not enough speed and determination. I know that that is behind the Government’s planning reforms. I fear that my noble friend Lord Lansley’s amendments could also slow things down, but he may be able to reassure me on that. I look forward to the Minister’s response on how we can ensure that these changes will speed things up and get us the reforms that we need, if the economy and the energy economy are to work well in the months and years ahead.

[Baroness Coffey (Con)]

My Lords, I agree with my noble friend Lord Lansley’s approach of being specific about what it is that developers and investors should be looking at instead of what the latest designated strategy might be. This approach also makes sure that we do not end up with more reasons for judicial review, when it is left to judges to determine what is the strategy or where there is nuance and so on. My noble friend made points about making that direct link to understanding a moment in time and that the measure has been through the parliamentary aspect of the process, initiated by the Government of course. That simplicity will in fact help the Government in achieving a lot of the aims which they seek.

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[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I will speak briefly to this group of amendments, which relate to the connections reform provisions within the Bill. These are largely technical and drafting amendments, but they are none the less important to ensure clarity and alignment across the legislation. I agree with many of the issues raised by my noble friends Lady Neville-Rolfe and Lady Coffey, particularly anything that slows down the grid connections process or adds more cost to the consumer.

Let me start by welcoming Amendment 72, in the name of the noble Baroness, Lady Taylor of Stevenage, which, as she stated in her admirably brief opening, makes a simple drafting correction. It removes the definition of “qualifying distribution agreement” from Clause 16, as it is already defined in Clause 13(8). This is a helpful tidying up amendment that improves the consistency of the Bill’s language, and I am grateful to the noble Baroness for bringing it forward.

Amendments 73 to 76, tabled by my noble friend Lord Lansley, would also serve to improve the clarity and coherence of the Bill, particularly in relation to NESO and its responsibilities. Amendment 73 would ensure that NESO is required to have regard to the strategy and policy statement under Section 165 of the Energy Act 2023, rather than the designated strategic plan. This helps to bring the language of the Bill in line with existing legislation and policy frameworks.

Amendment 74 makes a similar adjustment to Clause 17, ensuring that NESO must have regard to the strategic priorities set out in the strategy and policy statement under the 2023 Act. Amendment 75 then defines “strategic priorities” as those contained in the most recent strategy and policy statement issued under that Act—again reinforcing consistency and legal precision. Amendment 76 replaces references in Clause 17 to “designated strategic plans” with “strategic priorities”, to align terminology with Section 165 of the Energy Act 2023. My noble friend Lord Lansley has put forward a strong case for these changes to the Bill, and they appear to be sensible and constructive amendments.

Finally, Amendment 79, in the name of the noble Earl, Lord Russell, raises an important issue by highlighting the delays and high costs associated with connecting to the national grid. This amendment addresses a key barrier to energy development and considers the use of local grids as a way of improving efficiency.

This has been a good, thoughtful and short debate. I look forward to hearing the Minister’s response.

[Baroness Taylor of Stevenage (Lab)]

My Lords, it is reassuring to hear such a degree of consensus across the House that we all want to deliver the same thing from this—speeding up the connections process. I have expressed my frustration many times before in this House that it can take longer to get a grid connection than it did to build the whole of the A1(M). That is a just a nonsense and we have to move on from it.

I thank all noble Lords who have spoken in this brief debate, particularly the noble Lord, Lord Lansley, and the noble Earl, Lord Russell, for their amendments, and the noble Baronesses, Lady Neville-Rolfe and Lady Coffey, for their comments.

I am afraid I have to oppose the amendments from the noble Lord, Lord Lansley. I understand how well intentioned they are and I greatly respect his experience in these areas, but they would have significant unintended consequences for the Government’s ability to respond swiftly and effectively to the evolving needs of our energy system.

At the heart of the amendments is a proposal to require that the strategy and policy statement, also known as SPS, designated under Part 5 of the Energy Act 2013 is used for the purpose of prioritising connections to the electricity network. I recognise the helpful attempt by the noble Lord to ensure consistency and clarity with regard to the obligations of Ofgem and the National Energy System Operator, NESO. I also fully recognise the importance of parliamentary scrutiny and do not for a moment suggest that we should seek to avoid that. But we must also be honest about the practical implications of this approach.

The SPS is subject to a rigorous process that is entirely appropriate for a high-level, overarching statement of policy. But it is not designed to accommodate the pace or specificity required to support the complex and fast-moving reforms we are undertaking to unblock and accelerate electricity network connections. We are entering a period of rapid transformation. The grid must decarbonise. New technologies are emerging. Electricity demand is shifting and increasing and the connections process must evolve to keep up.

In that context, the Government must be able to designate timely targeted guidance, potentially in the form of multiple documents, tailored to different parts of the sector, such as generation or demand connections, or technology-specific plans and strategies. Indeed, the Government have already signalled their intention to designate the Clean Power 2030 Action Plan and the Industrial Strategy—both existing documents published recently—when the necessary powers are available. These are concrete, strategic documents that will help the industry to plan and invest with confidence, hopefully meeting some of the concerns of the noble Baroness, Lady Neville-Rolfe. But these amendments would prevent that. They would limit us to a single document—the SPS—and, in doing so, tie our hands at precisely the moment we need the most flexibility, creating potential delays and preventing the granular and specific strategic direction required for the grid connection process.

There is a further and more fundamental issue. Distribution network operators—DNOs—have no legal obligation to have regard to the SPS. These companies are critical to the delivery of connections reform and are responsible for connecting a significant volume of new generation and storage that will connect directly to the distribution network. They are privately owned and operated and the SPS was never intended to bind them. To attempt to do so now would be not only inappropriate but unworkable.

If we are serious about reforming the connections process—as I believe we are; we have heard that this afternoon—we must ensure that our strategic plans can apply to the full range of actors involved. That means having the ability to designate plans that are fit for purpose, timely and applicable to the right parties. The strategy and policy statement is a high-level strategic document intended to provide Ofgem and NESO with clear direction over the Government’s strategic priorities and desired outcomes for the duration of our term to inform decision-making. In contrast, as I have said, designated plans for the purpose of connections reform may include more granular, tactical guidance. These documents are designed to complement, not conflict with, the SPS.

In response to the noble Lord, Lord Lansley, I would also say that plans are in place and being implemented for the connections to the transmission and distribution system. In November 2023, as the noble Lord mentioned, the Connections Action Plan was published, setting out expectations for the scale and pace of reform. This formed the basis for the National Energy System Operator’s connection reform proposals, which Ofgem have just approved. The broad ambition, on which legislative measures have been based, will see faster electricity network connection dates offered, at both transmission and distribution.

The noble Lord asked me a very specific question around the Gate 2 process. The implementation of current connection reforms is under way, as I said. We are working closely with NESO and Ofgem, and we are anticipating the Gate 2 decisions in the coming weeks; “coming weeks” is one of those expressions that I have got used to as I have been a Minister.

The Bill as drafted is intended to ensure that we have the tools to deliver the energy transition effectively. The measure as drafted strikes the right balance. We believe that it provides a clear mechanism for designating strategic plans while preserving the flexibility —which we know we will need—to respond to a rapidly changing sector. I therefore kindly ask the noble Lord not to press his amendments.

I turn now to Amendment 79, tabled by the noble Earl, Lord Russell. He said that he believes this is the biggest change since the Industrial Revolution in terms of power accessibility. I do not disagree with that statement. Let me begin by stating that we are in full agreement that the current delays arising from the first come, first served approach to grid connections are absolutely no longer tenable; I hope I have made that very clear. For this reason, in December 2024, the Government published the Clean Power 2030 Action Plan. This document outlines our plan to work collaboratively with the National Energy System Operator—NESO—and Ofgem to deliver a fundamental overhaul of the connections process.

The objective is to accelerate connection timelines for the most critical projects and to unlock billions of pounds of investment for renewable energy generation. Through the implementation of these reforms, it is estimated that up to £5 billion in unnecessary network reinforcements could be avoided. In turn, this should lead to long-term savings for consumers through lower electricity bills.

The reforms in question have been developed by NESO in close consultation with both industry stakeholders and Ofgem, following all requisite formal procedures, including public consultation. Ofgem has since approved these proposals and implementation is now well under way, as I have already mentioned.

This Bill is intended to support the reforms. Notably, the Bill will confer powers on the Secretary of State to designate strategic plans. These plans must be taken into account by both NESO and distribution network operators when exercising their functions in relation to grid connections.

It is anticipated that the Secretary of State will initially designate the Clean Power 2030 Action Plan and the Industrial Strategy, followed in due course by the proposed strategic spatial energy plan. These strategic documents are designed to reflect the needs of the nation’s energy system, including measures to address the inefficiencies of the current grid queue by prioritising projects of greatest national importance. Introducing a new statutory requirement for a further plan would risk delaying this progress and might introduce unwelcome uncertainty for industry participants.

On the matter of local energy grids, we do not consider that there is any regulatory impediment. The necessary infrastructure, including local networks that integrate both generation and demand, is already permissible. Such networks may be developed and operated by distribution network operators or independent network providers, or under private wire arrangements via statutory licence exemptions.

We are also firmly committed to supporting local and community energy initiatives. These play a vital role in the UK’s broader energy landscape and we are determined to ensure that communities continue to benefit directly from the transition to clean energy. We will be discussing more about that later this afternoon.

To that end, Great British Energy will work in partnership with mayoral combined authorities, community energy organisations and the devolved Administrations. This collaboration will include the provision of funding and strategic support, from planning advice to technical guidance, for local community energy stakeholders. I trust this explanation provides sufficient reassurance to noble Lords.

[Lord Lansley (Con)]

I thank the Minister for that. Is it then the Government’s intention to publish a new strategy and policy statement under the Energy Act? At the moment, legislation requires Ofgem to have regard to what is effectively an out-of-date strategy.

[Baroness Taylor of Stevenage (Lab)]

I hope I picked up that question during my response. I will just check back to make sure that I got the wording right. I think that is the case but I will confirm it to the noble Lord in writing. Still, I think he is correct in his assumption.

I trust that explanation provides a sufficient response for the noble Lord, and I ask him not to press his amendment.

Amendment 72 agreed.

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[Lord Cromwell (CB)]

My Lords, with the solar energy that is reaching me at the moment, it is actually quite hard to see whether there is anybody out there, but I will take it for granted that there is and that they are all listening with rapt attention.

I apologise that I was unable to participate in earlier debates on the Bill, but I have been following it closely. I should declare that my family farm has some of what the noble Baroness, Lady Coffey, referred to as “hideous”—or was it “horrendous”?—pylons and poles coming across it. My grandfather actually welcomed these as signs of the inevitable march of progress, but, even then, and certainly now, not everybody is quite as enthusiastic as he was.

While I see and support the logic of Amendment 77, it makes no provision overtly for wayleaves or compensation for those whose homes and businesses are affected by any additional poles et cetera. I hope that any amendment along these lines would accommodate such arrangements, as is the case with current power lines. Will the Minister, or perhaps the noble Earl himself, confirm that that is the intention?

[Baroness Neville-Rolfe (Con)]

My Lords, to pick up the point of the noble Lord, I remember my uncle getting pylons next to his house and how the compensation saved the day for his small business.

My own view is that it is good to have permitted development rights for minor changes, particularly if energy providers are calling for them. It makes sense to use this Bill to allow permitted development. My noble friend Lord Lucas said that it was hugely important, and I think it is hugely important to speed things up. As we have already heard, it is a surprise that some of these things require planning permission, and there is a lot of potluck as to whether you can get planning permission quickly in any particular area.

I just believe that we need to get things moving so I am not sure why the changes need to be in a regulation, as proposed in Amendment 77 from the noble Earl, Lord Russell. Can the Government not work out what can be easily excluded from planning control and put it in the Bill? That is how we used to do things in the Bills I remember presiding over in the 20th century when I was a civil servant. Is there anything that we can do to get rid of these things, rather than wait for further regulations and consultations, if it is straightforward?

I agree with my noble friend Lady Coffey that we should be careful not to allow multiple wind turbines through a back door. Clearly, the detail of this needs to be looked at; it has to be genuinely smallish things. I am less sure about permitted development rights for floating solar simply because I know so little about it; if we were to proceed with that, it should be in regulations. I am always asking the Minister how we can speed this process up. Permitted development rights here, and perhaps elsewhere in the Bill, can play a part.

[Lord Roborough (Con)]

My Lords, Amendment 77 in the name of the noble Earl, Lord Russell, seeks to require the Secretary of State to designate certain electricity network upgrade works as permitted developments within 12 months of the passing of this Act. I refer the Committee to my register of interests, including as a developer of solar and wind energy generation infrastructure.

The amendment is detailed and specific, covering a range of necessary and often routine upgrades to our distribution network. These upgrades are not exceptional; rather, they are part and parcel of the essential modernisation of our grid. As demand for electricity grows, driven by electric vehicles, heat pumps, an increasing shift to electrified systems and the construction of new data centres, so, too, does the need for a distribution network that can meet that demand safely and efficiently.

The concerns raised by the noble Earl in bringing forward this amendment have merit. Local electricity distribution is hampered by regulatory delays, planning burdens and procedural hurdles, which can slow down or increase the cost of what are in many cases necessary infrastructure improvements. We understand the motivation to streamline these processes and provide industry with greater certainty. However, there are important questions around local engagement, visual impact and environmental considerations, which would need to be worked through. Permitted development rights by their very nature bypass certain planning safeguards, and we must take care not to undermine public confidence in the system by extending them too broadly or too quickly. I ask the Minister whether there are other ways of simplifying the decision-making on such upgrades.

Amendment 94E in the name of my noble friend Lady Coffey would require the Secretary of State to make regulations to extend permitted development rights to include the installation of floating solar panels on reservoirs. At a time when we are seeking every opportunity to expand renewable energy without placing additional pressure on land, utilising existing bodies of water in this way may present a pragmatic and low-impact solution. My noble friend makes an important and timely point about the potential of underused spaces to contribute to our energy goals. I hope that the Government will look closely at how permitted development rights can help facilitate the responsible deployment of floating solar technology.

In a similar vein, Amendment 185B in the name of my noble friend Lord Lucas seeks to expand permitted development rights for small-scale onshore wind turbines up to a height of 30 metres. This, too, is a proposal worthy of consideration. Enabling more local generation of renewable energy, particularly where there is community support, can play a valuable role in decarbonising the grid and improving energy security.

I look to the Minister to provide clarity on the Government’s current thinking in this area and to address the important questions raised by the noble Earl, Lord Russell, and my noble friends Lady Coffey and Lord Lucas. Specifically, I hope that he can reassure the Committee that the Government recognise the need for timely electricity network upgrades and are actively considering how the planning framework can support that aim while balancing the interests of local communities and the environment.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Lord Khan of Burnley) (Lab)]

I thank the noble Earl, Lord Russell, for raising this important issue through Amendment 77. The Government fully recognise the need to accelerate electricity network upgrades to support the transition to net zero. We agree with the intent behind this amendment and with many of the specific proposals that it contains. However, we do not believe that it is appropriate to legislate on these matters through this Bill at this time. The amendment proposes exemptions from the consent process under the Electricity Act 1989. These are technical and regulatory matters that are generally best addressed through secondary legislation, following proper consultation.

The Government launched a public consultation on 8 July; it closes tomorrow. It includes proposals that closely reflect those in this amendment and seeks views from a wide range of stakeholders, including network operators, landowners and local authorities. The Government must undertake a thorough evaluation of consultation responses to understand any stakeholder concerns or unintended impacts ahead of implementation. Introducing changes now, whether through primary or secondary legislation, before that work has been done would pre-empt the consultation process and risk undermining the careful balance that we are trying to strike between speeding up delivery and protecting landowners’ rights. We are committed to acting quickly once the consultation process is complete, but we must do so in a way that is informed, proportionate and legally sound. For these reasons, I kindly ask the noble Earl to withdraw his amendment.

I thank the noble Baroness, Lady Coffey, for raising the important issue in Amendment 94E. The Government are committed to achieving clean power by 2030. We will need to see significant increases in the development of all types of solar, whether sited on land, rooftops or water, to achieve this mission. The Government are therefore supportive of floating solar and consider it a technology ripe for development, especially considering the increased efficiency of solar panels on water and the wider benefits of preventing algal blooms and reducing climate-related evaporation. An effective planning system is pivotal to delivering our clean power mission. The system must work in a way that supports both new infrastructures, such as floating solar, and more established technologies.

The noble Baroness may have seen that the Government published their first ever solar road map on 30 June; it commits to more than 72 ambitious actions across several areas, including planning. The road map includes a section on the opportunities of floating solar and identifies the needs both to provide clarity on the planning requirements for what is a relatively new technology in the UK and to ensure that these measures are proportionate. In the solar road map, the Government made a clear commitment to explore how planning levers could further support floating solar projects. This work will be overseen by a new government and industry solar council, which is being set up to assist in driving forward and monitoring progress on solar road map actions. However, we do not believe that it is appropriate to legislate on these matters through this Bill. I believe that it is only right that we conduct further work to ensure a strong evidence base on potential proposals and ensure that we have considered the breadth of benefits and impacts. I hope that the noble Baroness is content with this response; I kindly ask her not to press her amendment.

Amendment 185B, tabled by the noble Lord, Lord Lucas, seeks to classify some small-scale wind turbines as permitted development, provided certain conditions are met. I am grateful to the noble Lord for this amendment. He may have seen that the Government published their first ever dedicated onshore wind strategy on 4 July; it commits to more than 40 ambitious actions across several areas, including planning. One of the opportunities identified in the strategy regards small-scale deployment. The Government recognise the importance that small-scale onshore wind developments could play in achieving our wider decarbonisation goals and want to consider changes to the planning system to better support it—[Interruption.]

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[Lord Khan of Burnley (Lab)]

My Lords, the rules that determine whether a turbine can be classed as permitted development and not require a full planning application have not been updated for over a decade. With advances in technology and increased demand for small-scale generation, there may be opportunities to update these rules. Therefore, I hope the noble Lord will be pleased to hear that the Government committed in the onshore wind strategy to publish a consultation this year on whether existing permitted development rights are fit for purpose and could support other forms of small-scale onshore wind deployment. I believe it is only right that we conduct a full consultation to gather views, insights and evidence on potential proposals, and ensure that we have considered the breadth of the benefits and impacts.

I hope the noble Lord is content with this response. Before I ask him to withdraw his amendment, I will respond to the very important point alluded to by the noble Lord, Lord Teverson. The Government recognise the urgency of reform and have already taken action. We have published the 8 July consultation; we will gather views on proposals and we are committed to bold and effective reform, but it is essential that we understand the full impact of these changes on all those involved. We will move at pace to bring forward any necessary legislation once the consultation analysis is complete. I kindly ask the noble Lord to withdraw his amendment.

[Baroness Neville-Rolfe (Con)]

Coming back to Amendment 77, I mention one word: growth. We are trying, with cross-party effort, to reform the planning system and speed it up. I hear some good ideas from the noble Earl, Lord Russell, my noble friend Lord Lucas and others, yet we are having another consultation and another quango—doing something “in due course”, at some time, somewhere else. This is the flagship planning Bill, and I want the Minister to consider whether there is more we can do in it to set a better tone on speed and growth, and to get local authorities to move forward on the things which, as many agree, are bureaucratic and unnecessary.

[Lord Teverson (LD)]

Following on from the noble Baroness, Lady Neville-Rolfe, can the Minister give us some idea of a timetable for this, given that there is total unanimity that we are not in a sensible position and we need growth and to move this whole proposition forward? The consultation is about to end. Will we get this fixed by the end of the year, for instance? Could we be revolutionary and have something ready for Report? I am interested to hear from the Minister.

[Lord Khan of Burnley (Lab)]

We all share the opinion that we need to get this Bill on to the statute book speedily and to ensure that we have the growth to which the noble Baroness alludes. However, we need to do this by reflecting on and responding to the consultation, and for that to happen, we have to wait for it to finish—which is tomorrow, by the way. We will look diligently and carefully at the responses and ensure that we have a system that is fit for purpose, growth and development, so that this country grows. This Bill will play its part, but there will be secondary legislation following consultation. We hear noble Lords’ desire, which is also the Government’s; we are all on the same page, and we want to move robustly and diligently in considering the consultation that we launched.

[Earl Russell (LD)]

My Lords, I thank noble Lords who have taken part in the debate on this group of amendments. It has been a very useful group, and I note the unanimity around the House on these issues.

I thank the Minister for his response. I note that there is a consultation, which is closing tomorrow, on some of these matters. I would be interested to know which bits of my amendment are not in the consultation and how the Government plan to take those forward. I also press the Minister to take them forward as quickly as possible. If there is any scope for having conversations between now and Report, I would welcome that. If we can collectively take action on these matters where we agree, and make progress, that would be welcomed across the House. A government amendment on Report would also be greatly appreciated.

I thank the noble Baroness, Lady Coffey, for her important amendment. It is important that floating solar is not excluded. As she said, it is a nascent technology, subject only to the issues of not taking up water and leisure space, and perhaps that of drought. I absolutely welcome her amendment and hope that it can progress as well.

I also thank the noble Lord, Lord Lucas, for his amendment. I am not certain I can promise him a bonfire of regulations from my party hierarchy, but I support the amendment he has put forward, subject only to that one drafting issue. It is in exactly the same spirit as my amendment but comes from a different place, looking at what we can do to provide permitted development for such things.

Across these amendments, there is some interesting uniformity and common purpose on getting these things done, and I thank the Minister for his response. I beg leave to withdraw Amendment 77.

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[Lord Teverson (LD)]

My Lords, I just want to welcome that speech from the noble Baroness, Lady Bloomfield. It was excellent in its tone and entirely different from that of her colleague, the noble Lord, Lord Offord, when he spoke from the Front Bench. I congratulate the noble Baroness.

[Lord Khan of Burnley (Lab)]

My Lords, let me take this opportunity to welcome the noble Baroness, Lady Bloomfield, to her place on the Front Bench. I look forward to the exchanges ahead.

I turn to Amendments 78 and 79A, tabled by the noble Earl, Lord Russell, the noble Lord, Lord Swire, and the noble Baroness, Lady Coffey. I thank them both for tabling these amendments and for their interest in and commitment to improving grid capacity and electricity distribution infrastructure.

Amendment 78 seeks to require the Secretary of State to consult on and implement measures to grant distribution network operator powers in relation to the acquisition of and access to land, with the aim of accelerating electricity distribution network infrastructure build and maintenance. The Government are fully committed to achieving clean power by 2030. It is clear that a rapid expansion of the electricity network is essential to delivering that mission. Although we agree with the intent behind this amendment, we do not believe that it is appropriate to legislate on these matters through this Bill.

As previously outlined, the Government launched a public consultation on 8 July; it closes tomorrow, on 2 September. That consultation includes proposals on land access and rights and seeks views from a wide range of stakeholders, including network operators, landowners and local authorities. Once the consultation closes, the Government will undertake a thorough evaluation of the responses to understand stakeholder concerns and to assess any potential unintended impacts ahead of implementation. Introducing changes now, before that work has been done, would pre-empt that process and risk undermining the careful balance that we are trying to strike between speeding up delivery and protecting landowner rights.

We are committed to acting quickly once the consultation process is complete but we must do so in a way that is informed, proportionate and legally sound. I hope that the noble Earl, Lord Russell, is reassured by this response; I kindly ask him to withdraw his amendment. I will take his offer forward with my officials and look forward to meeting the noble Earl, alongside my noble friend Lady Taylor, on the issues raised in this area.

I move on to Amendment 79A in the name of the noble Lord, Lord Swire. This amendment would introduce a statutory presumption in favour of undergrounding power lines. It would require developers to demonstrate that undergrounding was their preferred and initial option, and that it was infeasible on cost or engineering grounds, before overhead lines could be approved. We understand that some communities hold strong views in favour of undergrounding, particularly due to concerns about the visual impact of overhead lines. We are aware that the support is partly driven by examples seen internationally, where undergrounding is used in certain contexts.

The Government’s position is that overhead transmission lines should be the starting presumption for electricity network developments except in nationally designated landscapes, where undergrounding is the starting presumption. That is because overhead lines are significantly cheaper, as undergrounding can cost up to four and a half times more, with costs ultimately passed on to bill payers. Overhead lines are also quicker to build, cause less environmental disruption and are easier to maintain and connect to existing networks.

That said, we totally understand the point made by the noble Lord, Lord Cromwell. I reassure him that neither I nor my noble friend Lady Taylor answered the Question that he asked in relation to pylons, but we look forward to speaking to and working with officials to get more detailed examples of costs and how they work in different ways in different combinations. The noble Lord asked a question that I did not previously answer on whether the network permitted development rights proposals in the current consultation cover compulsory purchase. I can confirm they do not, but there will be a huge debate—well, hopefully not a debate, but a huge discussion—on compulsory purchases in due course.

Strategic network planning is critical to ensuring that transmission infrastructure is designed and delivered in a way that meets system-wide needs. The National Energy System Operator, NESO, through the forthcoming centralised strategic network plan, will assess technology options against key criteria—including cost, deliverability, operability and community and environmental impact—and recommend optimal solutions. Developers will then apply those recommendations at a project level, refining routes and designs within existing planning and regulatory frameworks.

Accepting the amendment would move us away from a strategic, co-ordinated, system-wide approach to grid development and towards a more fragmented process. While undergrounding is already used on a case-by-case basis where justified, the amendment could lead to more frequent project-level decisions, undermining strategic system-wide planning. That risks creating inconsistency, reducing efficiency and ultimately slowing down the delivery of the infrastructure. We need to meet our clean power 2030 and net-zero targets. Further, the amendment would shift the burden of proof onto the developer, which would add complexity, legal risk and delay to an already lengthy consenting process. Given the significantly higher costs and technical complexity of underground lines compared with overhead, the amendment is unlikely to increase the use of undergrounding but would add additional time to the planning and delivery process.

Amendment 94, tabled by the noble Baroness, Lady Coffey, would require that electrical or communications cables under land in active agricultural use must be buried to a minimum depth of two metres from the surface level, and deeper if required. Existing legislation for electrical cabling is contained in the Electricity Safety, Quality and Continuity Regulations 2022. They require that:

“Every underground cable shall be kept at such depth or be otherwise protected so as to avoid, so far as is reasonably practicable, any damage or danger by reason of such uses of the land which can be reasonably expected”.


This legislation is supported by industry codes that provide the specific standards for the relevant minimum burial depth, considering different factors and use cases. These industry codes must comply with the legislation that forms the quality standards that network operators must legally operate within.

For agricultural land, the minimum recommended depth for electricity cables, set out in the Energy Networks Association’s engineering recommendation G57 for cable laying on agricultural land, is 910 millimetres. This is intended

“to provide sufficient depth to safeguard against damage from deep ploughing and cultivation, and from the mechanical installation of drainage systems”.

Recommendation G57 says:

“This depth requirement takes account of the wishes of the National Farmers’ Union”.


Agricultural activities including deep cultivations, subsoiling and mole draining rarely extend deeper than 700 millimetres below the soil surface. Installing cables at depths greater than 910 millimetres can introduce engineering and environmental constraints, such as increased heat generation from the cables, which may require additional mitigation measures such as increased pole spacing. Deeper installation would necessitate a wider and deeper trench, raising the risk of potential detrimental impacts on the soil resource due to soil handling and storage. The existing legislation is supported by detailed industry standards, ensuring an agile framework whereby the relevant standards can be flexibly updated and refined in line with evolving circumstances such as innovation while minimising potential impacts on agricultural land.

To conclude, similarly for communication cables, the Electronic Communications Code (Conditions and Restrictions) Regulations 2003 include a requirement that code operators must install apparatus such as cabling at a depth that does not interfere with the use of the land. This ensures that the land can continue to be used for the purpose that the landowner wishes, even where there is electronic equipment buried in the ground. Introducing a new requirement for the depth of communications cables could increase digital infrastructure deployment costs substantially, slowing network build and potentially preventing the Government’s ambition of a nationwide coverage of stand-alone 5G and gigabit-capable broadband.

For the reasons outlined, I do not think that these amendments are necessary and I therefore kindly ask the noble Earl to withdraw his amendment.

[Earl Russell (LD)]

My Lords, this has been an interesting group of amendments, and I thank everyone who has tabled an amendment or taken part in the debate. I thank the Minister for responding so thoroughly and welcome his commitment to work with me between now and Report in relation to Amendment 78.

My only real concern is that I am aware that renewable energy operators are not included in the Government’s consultation. Equally, they were not included in my amendment, but they are an important part of the picture. If we could work together to try to find a solution so that they could be included in the process, preferably prior to Report, it would be appreciated.

I welcome the noble Baroness, Lady Bloomfield, to her place and recognise the point that she made on parliamentary scrutiny in relation to my amendment. I will take that on board. It was not my intention to exclude it.

On the amendment in the name of the noble Lord, Lord Swire, it is important that these issues are raised. I welcome the fact that this was put forward as a probing amendment. These are difficult issues that need to be balanced. I do not think that anybody knows the true cost of burying cables, because it depends on what you are burying them in, so I do not think there is an absolute answer. It seems clear that some of these costs are coming down. That may be something that the Government want to look at again.

There is an important need in this debate to balance the cost, which ultimately goes to consumers, with the need for the Government to be open, able to listen, to vary plans in response to communities’ concerns and to be able to persuade and hold the energy companies to account to take more expensive options where there are particular impacts. To that end, I also welcome that the amendment from the noble Lord, Lord Swire, would be against the EN-1, the overriding energy policy statement. I ask the Government to be open to the idea. I know that there are legislative conditions around areas of outstanding natural beauty, but the Government should be open and mindful of community concerns and make sure that budgets are available for burying cables where communities raise particular concerns or there are particular types of landscapes. I welcome the news that we had yesterday of the cable from Norfolk going south. In response to the consultation that took place with communities, bits of that have been buried. I think that is the right approach. With that, I beg leave to withdraw my amendment.

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[Lord Goodman of Wycombe (Con)]

My Lords, I rise, as my noble friend on the Front Bench said a moment ago, to speak to my Amendments 85A, 88B and 88C, which seek to effect the recommendations of the Delegated Powers and Regulatory Reform Committee, of which I am a member, on this Bill. I shall speak to them briefly.

The amendments fall into two parts. The first part refers to benefits that shall arise for people who live in homes near electricity transmission projects—a very good principle and one which I am sure that we all agree. The question then follows: who should be eligible for this scheme and who should be eligible to receive these benefits? The Government say that that should be decided by regulation—and, again, that seems perfectly reasonable.

The question is about the level of parliamentary procedure that the regulations in question should receive. The Government propose that only three aspects of these wide-ranging new sections, Sections 38A to 38D of the Electricity Act 1989, which this Bill amends, require the affirmative procedure, and that all other aspects of the scheme will be made by negative procedure resolutions, on the grounds that those regulations are merely of an “administrative or technical nature”. However, the committee’s view, many aspects of the regulation-making powers proposed by the Government are

“important matters of substance rather than mere ‘administrative or technical’ matters”.

I shall cite just three of them as quoted in our report. There is:

“making provision determining whether premises or works are qualifying … conferring and delegating functions in connection with the scheme”

and

“providing for payments by electricity suppliers to meet costs incurred in the carrying out of functions in connection with the scheme”.

The argument of the committee is that those matters are not merely administrative or technical but rather more substantial, and it concluded:

“The affirmative procedure should apply to all regulations made pursuant to the provisions inserted by clause 26 of the Bill, not just those matters mentioned in new section 38A(6) of the Electricity Act 1989”.


That is the first matter. The second matter is the use of forestry estate for renewable electricity, which is again a perfectly sensible aim and one with which I am sure noble Lords will agree. Clause 28 inserts new Section 3A into the Forestry Act 1967 to give forestry commissioners powers to use land in England for this purpose, and it gives the same powers to the Natural Resources Body for Wales. The Government say, in effect, that the two bodies should not worry because they will not interfere if those bodies wish to engage in small-scale projects of this kind—they will do so only if they believe that the projects that those bodies wish to undertake are significant. That is fine, but the committee noted that

“this requirement of significance does not appear on the face of the Bill”.

It went on to say:

“We do not judge delegated powers on how the Government say that they will use them but on how any Government might use them … Clause 28 should state explicitly that Ministerial consent to Forestry Commissioners’ and the National Resources Body for Wales’ renewable electricity projects should only apply to significant projects”.


In conclusion, my understanding is that the Attorney-General is of the view that delegated powers have been used by previous Governments, especially the last one, in a somewhat slipshod manner, and that this new Government will do better. If the Minister on the Front Bench is to follow in the footsteps that the Attorney-General has laid out, I look forward to him being able to give a positive response to what I have said and to the committee’s report, and I look forward to hearing from him in due course.

[Lord Khan of Burnley (Lab)]

My Lords, I turn to Amendments 80, 81, 82, 85A, 88B and 88C, which relate to Clause 18 and consents for electricity infrastructure in Scotland and delegated powers in the Bill. I thank the noble Lord, Lord Roborough, for tabling the amendments on consenting in Scotland and the noble Lords, Lord Offord and Lord Blencathra, for supporting him. I also thank the noble Lord, Lord Goodman, for the amendments relating to the Bill’s delegated powers.

I turn to Amendment 80, which seeks to prescribe that any fees paid to Scottish Ministers for processing electricity infrastructure applications and for any pre-application services provided may be used only for consumer benefits or local planning authorities. Clause 18 creates a power to make regulations relating to fees to be paid to Scottish Ministers on the application for consent or anything done by them in relation to a proposed application under Sections 36 or 37 of the Electricity Act 1989.

Scottish Ministers already have the power to make regulations for determining the fees to be paid on applications, with the Bill creating a power to make regulations for fees for pre-application services. This aims to allow the Scottish Government to resource their own efficient processing of electricity infrastructure applications and pre-application services. The UK Government recognise the importance that local planning authorities have in the consenting process, and that they therefore need to be appropriately resourced.

While I welcome the spirit of the amendment, the resourcing of local planning authorities in Scotland is a devolved competence. Scottish Ministers will consider the resourcing of statutory consultees and local planning authorities to ensure that they are adequately resourced and have the skilled workforce to carry out any additional responsibilities created by these reforms. It would therefore not be appropriate for the UK Government to be prescribing in statute how Scottish Ministers direct their resources.

The amendment would also provide for the directing of fees to community benefits packages. Over the past 12 months, renewable energy developers in Scotland have offered more than £30 million in community benefits. The UK Government are committed to the provision of community benefits for energy infrastructure. On 21 May 2025, the UK Government issued a working paper for public comment on proposals to mandate community benefits for low-carbon infrastructure and next steps for shared ownership. The deadline for comment has now passed and responses are being analysed which will inform next steps.

In Scotland, the provision of community benefits is already a well-established element of renewable energy developments. The Scottish Government have had good-practice principles for community benefits from renewable energy in place since 2014, and these are currently under review following the response to a public consultation that closed in April 2025. Similarly to the position on local planning authorities, it would not be appropriate for the UK Government to prescribe in statute that Scottish Ministers should direct fees received for processing consenting applications to community benefits packages.

Amendment 81 would require Scottish Ministers to hold a public hearing whenever an objection from the relevant local planning authority is received regarding an application for consent. Additionally, Scottish Ministers would not be able to make a decision on an application until at least one month after a public hearing session has taken place. The Scottish consenting reforms are intended to make the electricity consenting process in Scotland more efficient, while retaining opportunities for local communities and planning authorities to participate meaningfully in the process. A key aspect of the reform package developed with the Scottish Government is to move away from the current prescriptive methods of handling objections by local planning authorities to consent applications, which has resulted in a slower system, with decisions that can be delayed for years.

To deliver efficiencies, the proposed provisions allow for various procedures to be used in such circumstances, at the discretion of a reporter appointed by the Scottish Government. These may include holding one or more hearing sessions, or a public inquiry. Reporters are experienced specialists. In addition to considering written representations on the application, they may conduct site visits, request further written submissions from specific parties, and/or conduct hearings or inquiries. The amendment would introduce an additional requirement to the consenting process, mandating a public hearing regardless of other procedures a reporter may determine necessary, which could already include a hearing session or written representations. These reforms will bring in a more efficient consenting process that brings certainty to both applicants and communities. To achieve this, it is vital that the Scottish Government are able to examine objections by local planning authorities through the most appropriate and proportionate method.

Amendment 82 would remove Clause 18(4), which changes the way in which local authority objections to applications for consent for electricity infrastructure are managed. At present, public inquiries are required to be held in Scotland when the relevant local planning authority objects to an application under Sections 36 or 37 of the Electricity Act 1989, no matter the nature of the objection. Public inquiries tie up many electricity infrastructure consenting applications in Scotland for months and even years. This adds both time and uncertainty to the consenting process, leaving communities and applicants in limbo. It is a major barrier to the timely deployment of low-carbon electricity infrastructure when we need it most. While public inquiries have a key role to play in ensuring that there is a transparent and thorough assessment of significant objections to electricity infrastructure projects, it is not proportionate or sensible that all such objections should be referred to this process.

As noble Lords will be aware, a primary aim of the Scottish consenting reforms is to streamline the process wherever possible, while retaining the right for local communities to have meaningful opportunities to comment on and influence applications. Clause 18(4) retains the right for relevant planning authorities to object to applications for consent, while bringing in a targeted, effective process fit for a modern consenting system. This is essential to end delays in electricity consenting and put in place the infrastructure we need. The policy intent of this clause is to move away from the current prescriptive methods for handling objections by local planning authorities to consent applications, which has resulted in a slow system, with decisions that can be delayed for years.

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[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, Amendment 82B from my noble friends Lord Offord of Garvel and Lord Roborough would require the Secretary of State to report on the impact of this Bill on the UK’s long-duration electricity storage capacity. It is both reasonable and necessary. The new clause in Clause 25 makes reference to a scheme designed to encourage the development and use of long-duration electricity storage installations, but, as with any major intervention in our energy system, it is essential that we couple ambition with accountability. That is precisely what this amendment seeks to ensure.

The case for energy storage is seemingly clear. All sides of this Committee recognise the need to address the intermittency of renewable sources, particularly wind. Storage is seen as part of that solution, but we must be realistic about the scale of the challenge. We are often told that battery storage will save us; that it will plug the gap when the wind does not blow. But let us look at the numbers. The UK’s average daily electricity demand is 780 gigawatt hours. Our current battery storage capacity is roughly 12 gigawatt hours, which would keep the lights on for approximately 30 minutes. Globally, total battery storage is around 369 gigawatt hours—enough to power the UK for barely a day. This is not to dismiss the importance of innovation nor the promise of new technologies but to say we must deal in facts. We must measure progress and we must understand whether the scheme we are legislating for is delivering results. The requirement to report to Parliament on the impact of this Bill in this crucial area is not bureaucracy; it is oversight and it is responsible governance.

I now turn briefly to Amendment 82A, tabled by my noble friend Lord Fuller, which addresses the important and growing issue of fire safety in relation to long-duration electricity storage systems. However, I should say not all long-duration energy storage systems—and I think I can probably justify squeezing in another Welsh reference here to First Hydro’s schemes at Dinorwig and Ffestiniog power stations and the proposed Dorothea pump storage scheme, none of which will cause safety or fire issues.

As we move towards decarbonising our energy grid and increasing our reliance on renewable sources, long-duration energy storage is set to play an increasingly central role in stabilising supply and ensuring resilience. These technologies, whether battery-based, thermal or otherwise, are argued to be essential to the UK’s clean energy future. But with innovation comes responsibility, and we must be alert to the safety implications that accompany some of these new forms of infrastructure.

Amendment 82A rightly recognises that some forms of long-duration energy storage, particularly those involving large-scale batteries or other flammable components, pose inherent risks, especially in the event of fire. These are not theoretical concerns. We have seen incidents, both here and internationally, where energy-storage sites have suffered fires that require significant emergency service intervention and in some cases posed serious threats to nearby communities. This amendment seeks to introduce a sensible precaution that proposals for such technologies should be developed in consultation with the local fire and rescue authority. This would help ensure that any fire risks are assessed and mitigated early in the planning process and that emergency services are properly informed and prepared should an incident occur. As we roll out more of these systems in urban and rural settings alike, that reassurance will be crucial not just for planning authorities and operators but for the public.

This is a pragmatic and proportionate amendment. It reflects legitimate public concern and supports our wider objectives without compromising safety. I look forward to hearing the Minister’s response and, I hope, his assurance that public safety and fire risk will remain at the forefront of policy and operational planning as we deliver the energy infrastructure of the future.

[Lord Khan of Burnley (Lab)]

My Lords, Amendment 82A, tabled by the noble Lord, Lord Fuller, seeks to require long-duration electricity storage—LDES—operators to consult local fire authorities to assess the project’s fire risk before installation. I want to assure the noble Lord that this Government take fire safety extremely seriously, but we do not feel this amendment is necessary or proportionate, and it risks unintended consequences. I personally want to say to the noble Lord that, since fire has come from the Home Office into MHCLG, I have the ministerial responsibility for fire, and the noble Lord is welcome at any time to drop me a line to discuss anything related to this point or any concerns around fire safety.

The Health and Safety Executive regulates battery-energy storage system—BESS—sites within a robust framework that mandates battery designers, installers, and operators to uphold high safety standards. Our planning practice guidance encourages developers of BESS sites to engage with local fire and rescue services prior to the submission of their planning application and to consider the National Fire Chiefs Council’s guidance, so that matters relating to fire safety can be considered at the outset. However, we are going to go further than this. The Government are considering additional measures to enhance the regulation of the environmental and safety risks of BESS. Defra recently published a consultation on proposed reforms to environmental permitting for industry, including the principle of including BESS in scope of the environmental permitting regulations. This would give further safeguards for both people and the environment.

This amendment would add burdens to local fire and rescue services. Further changes to the long-duration electricity storage cap and floor scheme would add complexity to the system, which would lead to increased cost and time for the applicant. I hope that the noble Lord, Lord Fuller, is satisfied with my response, and I kindly request he withdraws his amendment.

Amendment 82B, tabled by the noble Lords, Lord Offord of Garvel and Lord Roborough, requires the Secretary of State to report to Parliament on the impact of the Planning and Infrastructure Act on the UK’s long-duration electricity storage capacity within five years of it being passed. I want to assure the noble Lords that this Government are committed to monitoring the development of the UK’s long-duration electricity storage capacity, as well as our wider clean power 2030 ambitions. Ofgem is proceeding at pace with the delivery of the first window of the cap and floor regime, and expects to announce final decisions on successful projects, in both the 2030 and 2033 delivery tracks, in the second quarter of next year. Ofgem will remain closely involved in monitoring delivery of those projects, and information on their features and progress will of course be made public at the appropriate stage, as they would be for any other major generation projects.

The Government publish statistics on the UK’s electricity storage capacity annually in the Digest of UK Energy Statistics—DUKES. This currently includes pumped storage hydro and grid-scale batteries. Other types of LDES will be added to the publication when they become operational. The Government also have a statutory duty to report on their carbon budget progress under the Climate Change Act 2008. For instance, the Act requires the Climate Change Committee to provide an annual report to Parliament on the UK Government’s progress in reducing greenhouse gas emissions, and we would expect future reports to include all relevant and significant developments in this regard, including those on delivery of the LDES cap and floor. The Government have a statutory duty to lay their response to the Climate Change Committee’s progress report before Parliament.

Given these existing monitoring and reporting commitments, this amendment to create additional reporting requirements is not necessary. I trust that the noble Lords, Lord Offord and Lord Roborough, are satisfied with our responses and I therefore kindly ask them not to press their amendments.

[Lord Berkeley (Lab)]

My Lords, the news that my noble friend has given us about the further checks and balances and reports on fire safety are very encouraging. However, the noble Lord, Lord Fuller, raised the question of the fire on top of the multi-storey carpark in Luton. There was a similar incident—just as bad, if I may say so—on a ship, somewhere between the Netherlands and the UK, which was carrying several hundred cars with these batteries. Apparently, the ship set itself on fire and the cars set each other on fire, and it was very lucky that nobody was hurt, because there was no way to put out the fires. I think the ship sank in the end.

My concern, to which I am sure my noble friend can respond, is that all these new reports are very useful, but what is missing is some transparency as to what actually happened. What happened on the roof of Luton airport carpark? We do not really know. Everybody denies that it was anything to do with lithium ion, but most people think that it probably was and that the then Government said nothing because they did not want to upset people. I hope my noble friend will agree that transparency is a very important part of the ongoing work.

[Lord Khan of Burnley (Lab)]

Let me reassure my noble friend that transparency is absolutely important in this situation. Both my noble friend and the noble Lord, Lord Fuller, provided examples; of course, it would be remiss of me to comment on them, but I am sure there will be some investigation and learning from them. If the point is to go away and find out what lessons have been learned, and look at them as part of our transparency, it is a good one and I accept it.

[Lord Fuller (Con)]

My Lords, we have had an interesting, brief debate which actually had a few twists and turns. The Minister asked me whether I was satisfied with his response and I regret to say that I am not satisfied at all, for reasons I will give in a moment. Before that, I will deal with the interventions from the noble Earl, Lord Russell. I was not sure whether he was for or against this amendment, but I regret that he fatally undermined the Lithium-ion Battery Safety Bill, brought forward by his noble friend Lord Redesdale, which now must be pointless from the Liberal Democrats’ point of view. I would have thought he would have been standing full square behind my amendment, which highlights the dangers of lithium.

The noble Baroness, Lady Bloomfield, quantified the value of battery storage in terms of amp hourage and capacity. However, the value of battery storage is not necessarily purely in the storage capacity; it is in the smoothing of voltages at an aggregate level, across a whole grid, and maintaining the hertz. It is a difference of only 0.2 hertz in the Iberian catastrophe that caused the contagious knock-on effect that brought down the entire grid in Iberia, in Spain and Portugal. So we must not look at battery storage in terms not only of current but of stability.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank all noble Lords who have spoken on this group: the noble Lord, Lord Roborough, the noble Earl, Lord Russell, and the noble Baronesses, Lady Pinnock and Lady Coffey. Their amendments relate primarily to the bill discount scheme for communities near new and certain significantly upgraded transmission infrastructure, and other community benefit schemes; these are Amendments 82C to 82E, 83, 83A to 83C, 84, 84A to 84C, 85, 86 and 94.

Before I turn to the specific amendments, I say to the noble Baroness, Lady Coffey, that I will not cover business rates retention in my response. That is a bit above my pay grade, and I am afraid that she will have to wait, as we all will, for the Chancellor’s Autumn Statement to see whether she intends to make any changes to that. That is the responsibility of the Treasury. As the noble Baroness is very well aware, there is a redistribution mechanism in the business rates retention, which enables those areas that are less able to raise business rates to benefit as much as some of those that are more able to raise business rates. I am afraid that any adjustments to that are not in my remit, so I will not cover that.

I turn first to Amendments 82C, 82E and 83A to 83C, which aim to extend the scope of the financial benefit scheme for people living near new and significantly upgraded transmission network infrastructure to those living near energy generation infrastructure. While I believe that the spirit of these amendments from the noble Baroness, Lady Coffey, is certainly well intended—and the Government are committed to ensuring that communities that host clean energy infrastructure benefit from it, including clean energy generation infrastructure—I must resist these amendments for reasons that I will set out for her.

Clause 26 specifically allows for the creation of a bill discount scheme for those living near new or significantly upgraded transmission network infrastructure, with a minded-to position of offering eligible customers a bill discount of £250 per year over 10 years. This ensures that communities living near this infrastructure are recognised for the service they provide the country in hosting the infrastructure and helping to achieve our clean power goals. The clause has been specifically designed to address transmission which, due to its long, linear nature, impacts communities without necessarily providing further benefits, such as local jobs or investment, that other infrastructure probably will bring. If this clause is amended as suggested, it would require further complex and detailed amendments to ensure that it operates effectively for each type of generation infrastructure, delaying the time that it would take for the scheme to be implemented.

However, I can inform noble Lords that the Government have already presented proposals to expand the delivery of community benefits to other forms of clean energy infrastructure. On 21 May, we published a working paper on community benefits and shared ownership of low-carbon energy infrastructure, the responses to which are currently under review. Our proposals would require developers of low-carbon energy generation and energy storage infrastructure to contribute to community benefit funds to support families, businesses and local community groups living near these projects. As the noble Earl, Lord Russell, suggested, the scheme could help regenerate our coastal and rural communities—for example, via new community facilities, apprenticeships and education schemes—boosting local economies and growth as part of the plan for change.

The paper also sets out how communities could own a stake in renewable energy infrastructure through shared ownership, resulting in profits being reinvested in the community. Through these proposals, we aim to provide communities with consistency and certainty that they will benefit from hosting new generation infrastructure. I hope that the noble Baroness accepts these reasons why these amendments would not be appropriate, is reassured that we are looking into ways to ensure that communities hosting new clean energy-generation infrastructure are properly recognised for the service they are providing to the country, and will agree to withdraw Amendment 82C.

Turning now to Amendment 83, tabled by the noble Lords, Lord Roborough and Lord Offord, which seeks to set the discount amount for the bill discount scheme at £1,000 a year for 10 years for households living within 500 metres of eligible infrastructure, I really sympathise with the noble Lords’ intention to ensure that households closest to the new transmission infrastructure benefit, but I am going to have to resist the amendment, for reasons which I will set out. The Government’s minded-to position is to provide electricity bill discounts of up to £2,500 over a maximum of 10 years for households living within 500 metres of new and significantly upgraded electricity transmission network infrastructure. This proposal provides a balance between ensuring that communities are recognised for the role they play in hosting the infrastructure and limiting the additional cost to electricity bill payers in Great Britain from the scheme.

We are still conducting final analysis on the overall cost of the scheme. On 8 August, we published a consultation on our current proposals for scheme design, and that consultation is open until 26 September. Final analysis will be published in our impact assessment, alongside secondary legislation. The Government consider that the overall level of benefit ought to be set out at that stage, which will still allow for sufficient parliamentary scrutiny once secondary legislation is laid. I hope noble Lords understand our position on this matter. I look forward to working closely with them at the appropriate time on this important detail of the scheme.

I turn to Amendment 84, which seeks to extend the scope of the financial benefit scheme for people living near new and significantly upgraded transmission network infrastructure to those living near onshore wind turbines. I welcome the intent of the noble Lord’s amendment. The Government are committed to ensuring that communities which host clean energy infrastructure benefit from it. Clause 26 allows for the creation of a bill discount scheme for those living near new or significantly upgraded transmission network infrastructure, with a minded-to position of offering eligible customers a bill discount of £250 a year over 10 years. This ensures that communities living near this infrastructure are recognised for the service they provide to the country. While it may seem logical to extend this scheme to other infrastructure, such as onshore wind, the clause has been designed specifically to address transmission, which, as I said, due to its long linear nature, impacts communities without providing further benefits, such as local jobs or investment, that other infrastructure can bring. If this clause is amended to include onshore wind, it would require further complex and detailed amendments to make sure that it operates effectively, delaying the time it would take for the scheme to be implemented.

However, I am pleased to inform noble Lords that the Government have already presented proposals to expand the delivery of community benefits to other forms of energy infrastructure, including onshore wind. I spoke already about the paper that was produced on 21 May on the community benefits, and we are reviewing the responses to that. The proposals would require developers of low-carbon energy generation and energy storage infrastructure to contribute to community benefit funds—again, to support families, businesses and local community groups who live near these projects. The scheme could definitely help to regenerate those coastal communities. The paper also set out how communities can own a stake in those. Through these proposals, we aim to provide communities with consistency and certainty. I hope that the noble Lord is reassured that we are already looking into ways to ensure that communities living near new onshore wind generation are recognised for their service to the country.

Amendments 82D, 84A and 84B, tabled by the noble Baroness, Lady Coffey, would remove the Secretary of State’s discretion to establish the financial benefit schemes as detailed in Clause 26. They would also ensure that eligible infrastructure projects constructed prior to Royal Assent to this Bill are included within the scope of the scheme. I acknowledge the intention of the amendments: to ensure that the scheme is not confined to those who live near eligible infrastructure built after the Bill is enacted. I must resist this amendment, for the reasons I will set out.

The aim of Clause 26 is to ensure that households that will live close to new electricity transmission infrastructure are appropriately recognised for their service. The Government understand that many of these projects are planned over the next few years. It is our intention that the scheme will run for a set period of time, and the Government require the flexibility to review the effectiveness of the scheme and determine whether it ought to continue for a longer period or come to an end after a certain date. Amendment 82D would remove that flexibility and result in greater time and monetary costs to bring the scheme to a close. Additionally, Amendments 84A and 84B would expand the financial benefit scheme by including works which have already been completed.

Around twice as much new transmission network infrastructure will be required by 2030 as has been constructed over the past decade. We believe it is only right that this unprecedented increase in the pace of construction is appreciated and that communities are recognised for the service to the country. Extending the scheme to historical infrastructure would be moving away from this purpose. We must also consider the substantial additional cost in extending the scheme in this manner. The increased complexity in identifying many more eligible households, as well as the increase in the number of discounts being paid out, would vastly inflate the cost of the scheme, as well as delay current rollout plans, due to the increased administrative challenges. However, although it would not be appropriate to modify the scheme in the manner that these amendments propose, I am happy to inform noble Lords that the Government are currently finalising details on eligibility for infrastructure where construction has recently commenced, as we recognise that there are projects vital to clean power 2030 that will have begun before the commencement of the scheme outlined in Clause 26.

Amendment 84C seeks to prevent the costs of community benefit schemes being borne by energy bill payers. I understand and appreciate the intention of the amendment from the noble Baroness, Lady Coffey, to protect consumers from rising energy bills. However, I will again set out the reasons why I have to resist this amendment. One of the Government’s five missions is to make Great Britain a clean energy superpower. This will boost our energy independence and reduce electricity bills. Our electricity network is key to achieving this. As we increase low-carbon and renewable energy generation, we will need to increase the scale of the transmission network at pace to keep up with demand. It will not be possible to deliver secure electricity supply vital to growth and prosperity without a transmission network that can transport it. This financial benefit scheme aims to increase community acceptability of electricity infrastructure and, in doing so, has the potential to reduce opposition and associated planning delays.

The Government’s current intention for the scheme, as outlined in Clause 26, is for the cost to be borne by an obligation on electricity suppliers. However, although they are not mandated to do so, it is expected that suppliers will recoup these costs by passing them on to their customers. For example, the warm home discount scheme is funded via an obligation on energy suppliers that is recouped via energy bills. Using alternatives, such as funding the scheme through Exchequer funding, would not be appropriate, as the bill discount scheme forms part of a broader package which has been developed to improve acceptability of transmission infrastructure, which in turn could help reduce constraint costs, if successful in supporting the accelerated delivery of critical transmission infrastructure. Because of this, the Government believe that it is most appropriate that the scheme should be funded through bills.

Preliminary estimates for the cost of both the bill discount scheme and the community funds guidance are around 80p to £1.50 per year per average household electricity bill, although this estimate is subject to change in our future impact assessment, set to be published alongside secondary legislation. Should this community benefit package, alongside our wider package of reforms, succeed in supporting the accelerated delivery of critical transmission network infrastructure, we could avoid up to £4 billion in constraint payments in 2030, compared with the scenario where delays persist. Those costs will be met by the consumers. This is as outlined in analysis from the National Energy System Operator.

I turn to Amendment 85, tabled by the noble Baroness, Lady Pinnock. We always enjoy hearing the Yorkshire dimension on our Bills in the House. The amendment seeks to expand the financial benefits scheme from households living near new and significantly upgraded transmission network infrastructure to those living near existing transmission network infrastructure. I acknowledge the good intent behind the amendment in recognising communities that have hosted infrastructure for years. However, for reasons that I will set out, I must resist this amendment.

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[Earl Russell (LD)]

My Lords, I thank the Minister for her response. She has mentioned the working paper in relation to several amendments, including mine. I welcome the words that she has given and the direction of travel. However, we have the usual phrase, that “in due course” something will come forward. The Minister may not have the answer to hand, but if there is a possibility of bringing forward those proposals in time for Report in relation to this group of amendments, it would be welcomed across the House.

[Baroness Taylor of Stevenage (Lab)]

I accept the noble Earl’s point. I am not fond of “in due course”, as he well knows—he has heard me say that many times. I will endeavour to find out what the timescales are likely to be. It usually depends on the level of responses that have been received and the complexity of dealing with them, but I will respond in due course.

[Baroness Coffey (Con)]

My Lords, I thank the Minister for her comprehensive answer on the variety of schemes and community benefits, bill discounts and similar. I am disappointed that she does not think that it is necessary to talk about generation. Not all projects are like Sizewell. Not all these potential new projects generate local jobs, although I am sure that the community will be very grateful for the ones that will be generated by Sizewell. Nevertheless, conscious of the time, I beg leave to withdraw the amendment.

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In conclusion, the amendments reflect a shared desire across this House to ensure that our forests are designed and managed sustainably and responsibly. As the role of forestry continues to evolve, whether in climate policy, nature recovery or renewable energy, it is right that we scrutinise the balance between economic, ecological and social priorities. I very much look forward to the Minister’s response.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank all noble Lords who have taken part in this debate. I do not have the hands-on experience of managing forestry that the noble Lord, Lord Roborough, does. My mother’s family home was in the middle of Savernake Forest, so it is very close to my heart, and the three elderly uncles who lived there when I was growing up worked in the forest in exactly the way described by the noble Lord, Lord Lucas. They did active work for the Forestry Commission: the kind of work that the noble Lord was describing.

Clause 28 sets out to amend the Forestry Act 1967 to grant the forestry authorities powers to pursue electricity generation from renewable sources within the public forest estate. Amendment 87, tabled by the noble Lord, Lord Teverson, and signed by the noble Baroness, Lady Boycott, seeks to restrict forestry authorities to supplying or using only waste materials in the context of renewable electricity generation from biomass. I completely understand that the intention behind the amendment is to prevent large-scale biomass operations on forest estate and inappropriate harvesting practices in the name of renewable energy, but I suggest that the concern is already addressed in statute by the balancing duty laid out in the Forestry Act 1967.

Clause 28 of the Bill applies the balancing duty specifically to renewable electricity, which means that forestry authorities are required to balance their renewable electricity functions with their forestry responsibilities and the conservation of natural beauty and flora and fauna of special interest. If the noble Lord is concerned that, without his amendment, the Forestry Commission would be able to engage in large-scale deforestation for the purpose of biomass, the Government’s categorical view is that that would not be consistent with the commission’s statutory duties.

Furthermore, I believe that the amendment would have unintended consequences that could constrain routine woodland management practices, including existing operations that contribute to the health of existing woodlands and the sustainable supply of biomass. Forestry authorities are committed to delivering the sustainable management of our forests and meeting the requirements set out in the UK forestry standards. These standards are upheld through processes such as thinning, where selected young trees are removed to enhance the quality and health of the broader woodland area—I think the noble Lord, Lord Roborough, referred to this. Through that process, all the material produced could be used for biomass. The proposed amendment could have the unintended effect of producing a narrow interpretation of “waste” that could exclude material most suitable for energy generation, such as material produced through the thinning process. This would limit the uses of forest materials and ultimately would be wasteful in itself.

Finally, it is important to note that sustainably sourced biomass can play an important role in our renewable energy systems, in transitioning away from fossil fuels and in meeting our net zero targets. Existing frameworks and duties provide a high bar for the Forestry Commission’s role as manager of the nation’s forests. These existing statutory duties underpin the commission’s current practices, including the sustainable supply of biomass, already operating at a smaller scale, as part of routine and acceptable day-to-day woodland management practices. The Forestry Commission has no plans to engage in the development of large-scale biomass technologies in the forests that it manages. It is for these reasons that I kindly ask the noble Lord to withdraw his amendment.

I will consider Amendments 97A, 87B and 88A together. I thank the noble Baroness, Lady Coffey, for her amendments, which aim to protect the forest estate from adverse impacts as a result of renewable electricity activities. I reiterate that our public forests are a precious national asset providing vital environmental, social and economic benefits, and this legislation will not change that fact.

The noble Baroness mentioned using wood in construction. Just before Recess, I visited an office building just across the Thames from here that was constructed using timber. It is a fantastic building. It looks out onto a small woodland as well, which makes it even better. So that is an important factor.

The forestry authorities’ key statutory duties remain to promote the interests of forestry, the development of afforestation, the management of forests and the production and supply of timber and other forest products. The additional revenue stream produced from the sale of electricity from renewable energy developments will enhance their ability to deliver their existing objectives.

Amendments 87A and 87B would require the forestry authorities to replace any woodland lost to renewable electricity development by double, with this being planted as near as possible to the original site. I reassure the noble Baroness that the size of the public forest estate will not reduce as a result of renewable energy developments. The estimated footprint of renewable electricity projects will be relatively small and there will be no net loss of woodland area. Renewable energy installations are successfully integrated into woodlands in many areas of Scotland. Scottish officials explained to mine that, generally speaking, where trees might be felled for, say, access purposes during the construction phase, they can be replanted once the access is no longer required.

It is the Government’s view that the amendment is unnecessary as there is already existing statutory provision to ensure that impact is mitigated in both the Forestry Act and the planning and development process. Therefore, permanent deforestation at concerning scale for the purpose of renewable electricity development would not be consistent with the Forestry Commission’s existing statutory duties.

Furthermore, I believe the amendments could have the unintended effect of limiting the ability to utilise new and potentially more suitable land to create new woodland habitats when undertaking compensatory tree planting. Some locations are less suitable for woodland creation, and replanting woodland as close as possible to the installation may not align with ecological and other environmental and timber-supply priorities.

The amendment may also limit the ability to pursue restoration measures beyond compensatory tree planting that could deliver greater environmental value. The Forestry Commission will ensure that compensatory planting takes place where woodland is permanently lost to renewable energy projects, but the planning process can often identify more effective ways of enhancing ecology and biodiversity. We would not want these alternative approaches to be constrained as a result of this legislation.

Amendment 88A specifically requests that Clause 28(6) is removed completely. The intended effect of this is to prevent regulations being made for purposes beyond those explicitly set out in the Bill. Many examples of the provisions set out in subsection (6) can be found in any large Bill. They are technical provisions that do not affect the fundamental purpose for which regulations can be made. In this case, that fundamental purpose is determined by subsection (5). I reassure the noble Baroness that, if regulations were to be made in reliance on the power in subsection (6) to make, for example, incidental or supplementary provisions, the scope of those regulations could not be broadened in the way that her amendment appears to be concerned about.

Further, the reference in subsection (6) to the ability to make different provisions for different purposes does not mean that any of those purposes can go beyond the general purpose set out in subsection (5). They cannot.

I note for completeness that the Government are currently reviewing subsection (5) in response to recommendations made in the Delegated Powers and Regulatory Reform Committee’s report on the Bill. I therefore do not believe that the amendment is necessary for the intended effect. Given the existing provisions and the reasons I have set out, I hope the noble Baroness is reassured and I hope she will agree to withdraw her amendment.

Amendment 88, tabled by the noble Earl, Lord Russell, would place a limit on the amount of the public forest estate that forestry authorities may use for renewable electricity projects. I recognise that our public forests are a national asset and that this amendment has been made in the spirit of protecting them. However, the existing statutory duties and regulatory frameworks will prevent excessive development of the forest estate. The estimated footprint of these renewable electricity projects will be relatively small. There will be no net loss to woodland area or the size of the public forest estate as a result of the renewable electricity projects. Furthermore, any renewable electricity developments will be subject to the relevant planning process and considered against the forestry authorities’ existing statutory balancing duty set out in the Forestry Act 1967.

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[Baroness Young of Old Scone (Lab)]

The Minister gave a very impressive list of different pieces of statute, guidance and legislation from right across the spectrum that guides the Forestry Commission in its work. I just want to plant the idea in her head that perhaps the time has come for some legislation that consolidates all of those requirements. It is now nearly 60 years since we last had a forestry Bill.

[Baroness Taylor of Stevenage (Lab)]

I will pass my noble friend’s comments on to the Defra Minister.

[Lord Teverson (LD)]

My Lords, if this was not the House of Lords, I think I would ask for a round of applause for the Minister. That was very concentrated information over about 15 minutes without even a breath, so my congratulations to her.

Clearly, there is another debate that needs to happen. I am absolutely fascinated by the comments of the noble Baroness, Lady Coffey, that the Forestry Commission is not too strongly into planting trees. That could just explain the fact that we are rather behind on our tree planting targets in this country. I really welcomed the in-depth, practical view of how the Forestry Commission worked from the noble Lord, Lord Roborough.

As far as my amendment is concerned, I can see from what the Minister said in answer to one of the other amendments that the role model here may be what is happening in Scotland. I will look at that further and try to understand further what the Government are trying to achieve in terms of the Forestry Commission and renewable energy. I may or may not come back to this on Report, but at this point I beg leave to withdraw my amendment.