National Grid (Montgomeryshire)

Albert Owen Excerpts

Wednesday 4th February 2015 Westminster Hall

[Albert Owen (Ynys Môn) (Lab)]

The hon. Gentleman is making an important point about National Grid and its status. I am a member of the Select Committee on Energy and Climate Change, and we have raised that very issue. National Grid has a monopoly, and legislation has given it extra powers to be the systems operator. It decides which generation goes ahead, as well as having the grid connections. Does he agree—I hope that the Minister will take this on board, and I hope to make an intervention during her response—that we need to have proper consultation? The regulator, Ofgem, needs the responsibility and the remit to be the champion for communities, to ensure that this—

[Sir Roger Gale (in the Chair)]

Order. That was far too long for an intervention.

--- Later in debate ---

[Amber Rudd]

I am not familiar with the particular example given by the hon. Lady, but I hope that the Planning Inspectorate would review the consultation process as part of its consideration. That is part of the inspectorate’s legal obligation.

I was discussing the need to upgrade infrastructure to accommodate renewables, which in part explains why National Grid is going ahead in Montgomeryshire and why the hon. Lady had her experience. Developers of new generation, however, need the reassurance that the network will be delivered in line with their project time scales, so that they are able to generate electricity once those projects are completed. We should recognise that such generation projects are substantial long-term investments, and timely network delivery is crucial to their viability.

Before I address National Grid’s activity in Montgomeryshire, it might be helpful to explain the wider approach to deciding on new network infrastructure. Under the current regulatory framework, it is for network companies, such as National Grid, to submit proposals for new network infrastructure to the industry regulator, Ofgem, and the relevant planning authorities. My hon. Friend the Member for Montgomeryshire made some interesting points about Ofgem’s potential concerns, and referred specifically to conversations with its chief executive. I assure him that I will follow up on this debate by writing to Mr Nolan to establish whether the formal position has moved, and will come back to my hon. Friend on that. Under the current set-up, proposals are based on a well-justified need case—say, the connection of new generation, or the maintenance of a safe and secure network—but it is important to us that Ofgem feels confident of the proposals.

The network companies also propose routes and types of infrastructure. In doing so they are required to make a balanced assessment of the benefits of reducing any adverse environmental and other impacts of new infrastructure against the costs and technical challenges of doing so, following extensive consultation with stakeholders. The requirements are set out in their licence obligations under the Electricity Act 1989: they must develop economic and efficient networks, and have regard to the preservation of amenity and the mitigation of the effects that their activities could have on the natural beauty of the countryside. The 1989 Act also stipulates that network companies must provide connection offers when requested to do so by developers.

[Albert Owen]

I agree with the wider strategy that the Minister has outlined, but on the specific issue of defined and suggested routes in the consultation, communities are frustrated by the fact that the suggested route always goes ahead with only fine amendments. Will she encourage National Grid and Ofgem to have some sort of community involvement or appeals mechanism? When the preferred route goes ahead, communities fear that their words and deeds are not taken on board.