(3 days, 23 hours ago)
Lords ChamberMy Lords, I rise briefly to talk to Amendment 94D, tabled in the name of my noble friend Lady Coffey. This amendment concerns constraints on grants delivered by the Gas and Electricity Markets Authority. I simply ask the Minister whether he can clarify how the Government intend to ensure that such grants are awarded in a way that is both transparent and consistent across different technologies. I look forward to the Minister’s response.
My Lords, Amendment 94D tabled by the noble Baroness, Lady Coffey, seeks to prohibit the Gas and Electricity Markets Authority—GEMA—from granting or considering early construction funding or accelerated strategic transmission investment unless planning consent has already been secured.
While I understand that network companies should not be given excessive funding for projects where procurement or construction costs are not yet incurred, I must urge noble Lords to consider the unintended consequences that this amendment would have for our energy infrastructure and our collective ambition to deliver a net zero-ready grid.
Let us be clear: the mechanisms in question, early construction funding and ASTI, are not blank cheques. They are carefully staged investments, including stages designed precisely to support the preparatory work that enables planning consent to be sought in the first place. This includes environmental assessments, route design, stakeholder engagement and technical feasibility studies. These are not luxuries; they are prerequisites for any responsible and successful planning application.
To deny access to funding before planning consent is granted creates a paradox. Planning consent cannot be obtained without preparatory work, and preparatory work cannot be funded without planning consent. This amendment risks trapping vital transmission projects in a bureaucratic cul-de-sac.
We are not debating theoretical infrastructure; we are talking about the backbone of our future clean energy system—projects that will connect offshore wind, solar and other renewables to homes and businesses across the country. These are the arteries of our economy. Delaying them risks not only our clean energy mission and net-zero commitment but the security and affordability of our energy and wider economic growth as grid capacity is needed to power new investments.
Moreover, GEMA already operates under a rigorous framework of accountability and oversight. Funding decisions are not made lightly; they are subject to scrutiny, cost-benefit analysis and alignment with strategic national priorities. To impose a statutory constraint at this stage would not enhance that process but hinder it. I therefore kindly ask the noble Baroness, Lady Coffey, to withdraw her amendment.