Planning and Infrastructure Bill

Baroness Scott of Bybrook Excerpts

Report stage
Monday 20th October 2025 Lords Chamber

[Lord Ravensdale (CB)]

My Lords, I have just a few brief points to add to what the noble Earl, Lord Russell, stated. For me, this goes back to the governance system. Of course we have made progress in recent years; we have the strategic spatial energy plan, which is being managed by NESO, but we are hearing some feedback on that plan. In effect, it tries to map out what energy projects should be located where, in minute detail across the country. The industry has highlighted a number of problems with trying to do this at that scale; we need local knowledge flowing up into these plans. As well as the top down, we need the bottom up. We need to capture all the great knowledge that local areas and local authorities have.

I will just take heat as an example. One area may be better suited to heat pumps and another to heat networks. One area may have relatively well-insulated housing stock; another, poorly insulated housing stock. We need to capture all that and bring it into the energy transition. It is an important piece of the puzzle to making this energy transition work and making it cost effective. A recent study by UKRI highlighted tens of billions of pounds of savings if a place-based approach is taken over a place-agnostic approach, so it is important that the Government make some progress on this. We have not seen the progress needed.

We have had some good pilots using this approach in various areas across the country, but we now need the Government to get behind this approach to feed all the benefits of that local knowledge into the energy transition. I would welcome some reassurance from the Minister at least on timescales, on how they see this programme developing and on it reaching a decision on the role that local area energy plans will play in the energy transition.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 24 in the name of the noble Baroness, Lady Bennett of Manor Castle, seeks to ensure that small-scale renewable energy products are prioritised by the independent system operator and planner. As the noble Baroness knows, we on these Benches are very concerned about energy prices and want to see Ministers taking a pragmatic approach to delivering the energy infrastructure that we need.

I know that there is a particular interest in renewables, but we need to take a whole-system approach, tackling policy costs as well as the marginal costs of electricity. I would be interested to hear from the Minister what assessment the Government have made of the current support for renewables at a smaller scale, and it would be helpful for the House to know what plans the Government have on smaller renewables.

Although we feel that Amendment 46 in the name of the noble Earl, Lord Russell, is too prescriptive, it raises an important question about planning our energy supply for the future. Clearly, local needs should be taken into account. I look forward to the Minister’s response.

[Lord Wilson of Sedgefield (Lab)]

Amendment 24 tabled by the noble Baroness, Lady Bennett, though well intentioned, is not necessary to achieve the desired outcome of greater support with the grid connection process for smaller renewable energy projects. The amendment seeks to require the independent system operator and planner to prioritise support for smaller renewable energy projects when they apply for a grid connection. I recognise the noble Baroness’s helpful attempt to support smaller renewable energy projects. The Government appreciate the important role that smaller renewable energy projects, such as rooftop solar and community energy, can play in meeting our clean power mission, reducing energy costs and engaging communities in renewable energy.

Along with the independent energy regulator, Ofgem, the Government also recognise that more needs to be done to support smaller electricity network connection customers, including renewable energy projects, but this is achievable within the regulatory framework without the need for primary legislation. Indeed, Ofgem has already proposed stronger incentives and obligations on network companies to provide better connection customer service. Following a consultation earlier this year, it expects to publish further details and next steps in the coming weeks.

The amendment’s wording would also not meet the desired outcome. Section 16 of the Electricity Act 1989 requires electricity distribution network operators to connect customers. The amendment would place an obligation on the independent system operator and planner only in terms of the way in which the duties under Section 16 are complied with. However, the independent system operator and planner has no duties under Section 16. Given the legislative unworkability of the amendment, and given work already under way to support smaller renewable energy connection customers, I ask the noble Baroness, Lady Bennett, to withdraw it.

Amendment 46 in the names of the noble Earl, Lord Russell, and the noble Lord, Lord Ravensdale, seeks to require the Government to commence a programme of research and analysis on the imposition of a statutory duty on local authorities to produce local area energy plans, and publish a report on their findings; and to require the Secretary of State for Energy Security and Net Zero to make a formal policy decision on a statutory duty within two years. We recognise that the amendment moves the debate on from Committee so that an immediate burden is not placed on local authorities to produce a local area energy plan, and nor are the Government required to immediately produce national guidance for local authorities on local area energy plans. The amendment places this work in the context of planning for electricity infrastructure, but the approach set out in the amendment risks constraining and duplicating work already under way, and it may constrain the way the Government continue to work in partnership with local government.

The overall approach to this work is being undertaken jointly with local government through the ministerial Local Net Zero Delivery Group, which meets quarterly. This is co-chaired with the Local Government Association. The group has discussed the development of a framework for local government to provide more clarity on the roles and responsibilities for net zero and energy. This group will need to reflect on the role of local government on energy planning and net zero in the context of the warm homes plan and Great British Energy’s local power plan, both due shortly.

The kind of research envisaged by the amendment is already under way. This has been commissioned by DESNZ from local government officials working in local net zero hubs. This includes preparing guidance for local authorities on what they need to do on energy planning to prepare for the regional energy strategic plans that Ofgem and the National Energy System Operator—NESO—are producing. Ofgem and NESO are looking to consult on the approach and methodology later this year. They are also developing guidance and tools for local government to help it specify and procure high-quality data to support energy planning, with outputs due by January 2026.

In conclusion, we do not believe that primary legislation is the right place to set out in such detail a programme of work to review local energy planning. We are sympathetic to the points raised and agree with the point made in Committee about the importance of including local understanding in delivering the bigger picture on energy planning. I hope I have been able to give some assurances that the Government agree that local involvement in energy planning is important and that the kind of work the amendment envisages is already under way.

I must stress the need to review local area energy planning in the context of ongoing work and other policies and strategies as and when they are published, rather than to the timetable and in the way set out in the amendment. Preferably, this should be in partnership with local government, reflecting needs and approaches. I hope that the noble Baroness, Lady Bennett, is satisfied with our response and will consider withdrawing her amendment.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

My Lords, group 14 concerns a matter of principle that cuts across the Bill: the appropriate level of parliamentary oversight for far-reaching executive powers. New Section 38A introduces a consumer benefit scheme to provide financial compensation to those living near new or upgraded electricity transmission infrastructure. The principle behind this is entirely sound. It is right that communities that host nationally significant infrastructure should share in its benefits.

We support Amendments 26 and 27 in the name of the Minister. Amendment 26 would ensure that all regulations made under this section are subject to the affirmative procedure, not just those relating to offences or enforcement. These regulations will define who qualifies for support, how benefits are delivered and the responsibilities of electricity suppliers. These are substantive decisions that should not be made without oversight of Parliament.

Amendment 27 is a necessary consequential amendment to reflect this change. Given the wide scope of delegated powers in the new section inserted by the clause, it is entirely appropriate that Parliament has a say in how much a significant scheme is developed and applied. The affirmative procedure does not prevent progress. It simply ensures that when Ministers exercise broad powers, they do so transparently and with accountability.

We believe these amendments strike the right balance between enabling the Government to deliver the scheme and ensuring that Parliament plays its proper role. We are pleased to support them.

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Baronesses for speaking, and I apologise to the noble Baroness, Lady Pinnock, for getting Halifax and Huddersfield mixed up. But neither Halifax nor Huddersfield will be getting their own clause in the Bill. I commend the amendments to the House.