Energy Developers Levy

Debate between Jenny Riddell-Carpenter and Ann Davies

Wednesday 25th February 2026 Westminster Hall

[Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)]

I beg to move,

That this House has considered the potential merits of a levy on energy developers.

It is an honour to serve under your chairmanship, Mr Twigg. On the Suffolk coast, communities and nature are facing a stack of separate, fast-moving nationally significant infrastructure projects. Those are new generation, multiple offshore wind grid connecters, major transmission reinforcement, multi-purpose interconnectors and Europe’s largest energy project, Sizewell C. As we speak, we have six NSIPs being built or seeking consent in a small, 10-mile radius of my constituency of Suffolk Coastal. Each has been planned separately, but the impacts are felt cumulatively.

I find it absurd that our planning system still examines proposals project by project, and developers are not required by law to co-ordinate. My community is expected to host multiple billion-pound schemes simultaneously, without any statutory tools or funding to force or enforce co-ordination between developers. I need to say that, since I have been raising the profile of this problem, Ofgem has been leading co-ordination meetings with those NSIPs, but Ofgem’s role is only to chair those meetings. There is no statutory obligation to make them happen, and they have come about only because of increased pressure about the need for better co-ordination.

Some improvements have happened because of those meetings, and that is welcome, but we need to go much further. Co-ordination between NSIPs, when they operate in the same area, should be enshrined in law. That is precisely why I tabled new clause 33 to the Planning and Infrastructure Bill, which would have placed a legal duty on energy developers in the same area to share information, co-ordinate and co-operate on design and construction, and take responsible steps to reduce cumulative impacts.

As I have said before, the failure we are experiencing in Suffolk Coastal is because the previous Conservative Government totally vacated the leadership space when it came to our country’s energy and biodiversity planning. Energy developers filled that void. The Conservative Government sat back and allowed developers to take the lead and introduce proposals for totally unsuitable landscapes, all because it was cheaper than developing on brownfield sites. We have been left with a series of unco-ordinated whack-a-mole projects on the Suffolk coast. There is no brownfield-first strategy, no shared corridor strategy, no binding requirement to co-ordinate construction schedules, no mechanism to prevent the same land being dug up twice and no requirement to look at, or assess, the cumulative impact on nature and the environment.

It is not just me saying this. The Energy Security and Net Zero Committee report, “Gridlock or growth? Avoiding energy planning chaos”, highlighted the need for more strategic co-ordination in environmental impact assessments. It warned of “unnecessary costs and delays” from that “project-by-project approach”. The environmental impacts are assessed separately rather than cumulatively at habitat or seascape scale. In other words, communities in Suffolk Coastal are experiencing a national problem playing out locally, and that is exactly why I am calling for legislation to fix it.

The Chair of the Committee, my hon. Friend the Member for Sefton Central (Bill Esterson), agrees that it is completely crazy when construction is not co-ordinated. He sees the real need to apply that to not just energy companies but utilities digging up roads and pavements for repairs, or maintenance of gas, electricity and water, and construction projects. The Minister for Energy has previously acknowledged, publicly in debates and privately to me in meetings, that he agrees with me. He believes it is a source of deep regret that the previous Government did not do more to properly co-ordinate the huge build-out of new and important infrastructure. He has challenged me before that the statutory co-ordination I am seeking requires investment. That is a fair challenge. My response is a proposal to meet that challenge by setting out my proposed energy infrastructure co-ordination levy.

In simple terms, that is a levy payable by energy NSIP applicants, designed to fund cumulative planning, shared mitigation and co-ordinated delivery in host communities. It would apply to all energy NSIPs across generation, transmission and interconnectors. The payment would be triggered in two stages: a small amount when the application is accepted for examination, and the main payment when the development consent order is granted.

The levy would be calculated using a hybrid model reflecting real impact drivers: a base rate per gigawatt capacity; a base rate per kilometre of onshore cable; a base rate per substation or converter station; and a cap and a floor to ensure proportionality. That aligns cost with scale and disruption, not simply capital expenditure. Crucially, the funds will be ringfenced locally—that is really important.

[Ann Davies (Caerfyrddin) (PC)]

I really appreciate the hon. Member’s having secured this important debate, as we have issues very similar to Suffolk Coastal’s in Caerfyrddin and west Wales in general. A levy is really important for cumulative planning and mitigation. I would also add that there are tangible benefits for our communities, such as public transport and affordable homes. Those are things that we do not have in rural communities, but which a levy could support. Does the hon. Member agree that that is the way forward—not the piecemeal dribs and drabs that companies are offering us?

[Jenny Riddell-Carpenter]

I am looking forward to the Minister’s response, but I agree that the whack-a-mole strategy, which I have talked about, needs far better strategic oversight.

A dedicated energy co-ordination fund for affected host areas would be established and delivered through a locally accountable team. That is important, because all too often developers are headquartered elsewhere; they do not live in the areas with the repeated traffic disruption and the cumulative land take. Local institutions— the local council, for instance—must have the capacity to co-ordinate what developers currently are not required to.

The fund would support four priorities: shared modelling and evidence; design co-ordination, such as corridor planning and joint construction scheduling; strategic mitigation for nature, such as landscape-scale habitat restoration and long-term management funding; and the community impact reduction—stronger traffic enforcement and transparent liaison, for example.

Alongside that, there should be a statutory co-ordination board, independently chaired, that could set binding co-ordination objectives that applicants would have to respond to in their DCO documentation. Some may argue that the existing DCO obligations already address that issue; I tell Members explicitly that they do not. There is no statutory requirement for co-ordination between NSIPs.

Planning and Infrastructure Bill

Debate between Jenny Riddell-Carpenter and Ann Davies

Report stage
Monday 9th June 2025 Commons Chamber

[Ann Davies (Caerfyrddin) (PC)]

I rise to speak to new clause 61, on the issue of cable ploughing—specifically, on the plans put forward by Green GEN Cymru. It proposes a 90-km power line, much of which would be suspended on pylons, across the breathtaking Twyi valley, and an additional 65 kilometres of power line across the equally beautiful Teifi valley. This is not just any landscape; it is the heart of rural Wales. These are not just two valleys across rural Wales; they are treasured by communities that have lived and worked there for generations.

From the beginning, residents and farmers made one thing clear: we support green energy, but it does not have to come at the cost of our countryside. We have called persistently for cables to be placed underground so that we can embrace a sustainable future while preserving Wales’s natural beauty and agricultural land. Unfortunately, our voices have gone unheard. Surveyors have come on to the land without proper respect, disregarding the rights of landowners, and in some cases people have felt intimidated and pressured into signing away land that has been in their families for centuries.

[Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)]

I welcome the hon. Member’s contribution, as she is speaking to my new clause 61. This is a huge issue in Suffolk Coastal, where we have National Grid and ScottishPower Renewables making landfall, and farmers in my constituency have a similar experience to farmers in her constituency. After this debate, perhaps we can request a meeting with the Minister and share these examples in person.

[Ann Davies]

I would love to have that opportunity. I thank the hon. Lady for putting forward her new clause—it was a pleasure to sign up to it.

We should not expect the behaviour that I mentioned from those who claim to be building a greener future. Let us be honest: if Green GEN Cymru had chosen to place the cables underground from the start, as the new clause proposes, it would have saved itself significant trouble. It argues that that is too expensive, but what about the cost of delay and the legal cost of taking landowners to court, which is what has been happening?

There is another cost: the cost of resilience. Just look at what happened over the last winter during Storm Darragh and Storm Éowyn: overhead lines failed, power was lost in my area for up to seven days and compensation from the National Grid had to be paid. If those cables had been placed underground, the impact would have been minimal. Long-term thinking is not just the right thing, but the practical thing to do.

I remind the Chamber that Wales has the Well-being of Future Generations (Wales) Act 2015, which is a commitment to development that is truly sustainable and does not compromise the ability of our children and grandchildren to thrive just to cut costs today. Let us ensure that the transition to clean energy serves the needs of both the present and the generations yet to come. Let us ensure that it is not done to our communities, but done with them. Let us deliver a future that is both green and grounded.