National Grid: Pylons

Pauline Latham Excerpts

Thursday 2nd May 2024 Westminster Hall

[Matt Warman]

I absolutely agree with my hon. Friend that we need more clarity and transparency from National Grid. It is right that too many of my constituents and, by the sounds of it, my hon. Friend’s constituents feel that this is a fait accompli. The consultations are supposed to be meaningful if they are to preserve any kind of democratic consent, and we all need to encourage National Grid to deliver that kind of transparency, in particular on the costings of the different options. I thank my hon. Friend for that intervention.

To conclude, I want simply to reiterate my previous point: we should think about food security, economic impact and what is best for the taxpayer when it comes to a necessary rewiring of the grid. I implore the Minister to take the message back loud and clear to the Secretary of State for Energy Security and Net Zero, the right hon. Member for East Surrey (Claire Coutinho), because that is what is in the interest of the constituents of all hon. Members here today.

[Mrs Pauline Latham (in the Chair)]

Due to the number of speakers, I will have to reduce the limit for speeches to four and a half minutes. If hon. Members wish to be called in the debate, I remind them that they should bob, which they are doing. Also, as my hearing is not brilliant, please can hon. Members face the front and not turn to other hon. Members when they respond?

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[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

I chair a group of Essex, Suffolk and Norfolk MPs, some 15 of us, known as OffSET, the Offshore Electricity-grid Taskforce. We are campaigning for an offshore electricity transmission system in place of what National Grid now calls Norwich to Tilbury, to which my right hon. Friend the Member for Suffolk Coastal (Dr Coffey) referred. I also join in the congratulations to my hon. Friend the Member for Boston and Skegness (Matt Warman) on securing this debate.

We in OffSET share our objective with ESNP—Essex Suffolk Norfolk Pylons, which is the citizens’ campaign against pylons—and we are backed by a petition of 32,000 people and growing, across the three counties. We all want the same: to make the best use of wind power from the North Sea, maximising the use of green electricity in the UK at acceptable cost, by providing new capacity to get offshore wind electricity and onshore solar to consumers in London. The more we have studied the proposals, the clearer it has become that the present Norwich-to-Tilbury plan will not meet those objectives. In fact, they are against the UK national interest and should not be approved by Ofgem.

I say that with no sense of blame for anyone involved. I think that the Minister, his predecessors, DESNZ officials, National Grid Electricity Transmission, National Grid ESO—Electricity System Operator—and Ofgem are all doing their best. The very fact that we now have a concept called “holistic network design”, however, underlines the shortcomings of the piecemeal approach driven by the old regulatory regime, which has given rise to the proposal.

We are delighted that the Government initiated the offshore co-ordination support scheme to fund studies into alternatives to the original National Grid proposal. That resulted in the “ESO East Anglia Network Study”, containing an evaluation of 10 further options for amending or improving Norwich to Tilbury. The shortage of time may preclude going back to the drawing board and starting a new offshore design from scratch, but Norwich to Tilbury is already discredited, and undeliverable without substantial revision.

ESO’s modelling still finds that the majority of proposed network designs, including all plausible options, fail to transmit the power from where it is generated to the high-demand areas and in particular to the constrained area of north London. The Government—I have written to the Minister about this—must insist that National Grid ESO conducts further modelling to resolve the northern boundary constraints into London. Option 5b in ESO study’s mentions a possible link between Tilbury and Isle of Grain, which might resolve the problem, but it is the very option that ESO has not yet modelled. Without that, Norwich to Tilbury cannot possibly be justified, and we have the data to prove it.

Under all plausible scenarios, interconnectors would export that clean electricity to Europe for 80% of the time at a loss to the UK, in order to avoid making constraint payments to the wind farms. That cannot possibly justify the 60 million pylons across our landscapes. That is the main reason why I oppose the new inter- connector with Germany called Tarchon, which would join a new National Grid East Anglian connection node near Ardleigh in my constituency. Ironically, that connection causes so much of the environmental damage. It requires the Norwich-to-Tilbury project to divert to the east of Colchester by crossing the Dedham Vale special landscape area and then to double back to the west, parallel to the line of the A12. Even undergrounding high-voltage AC cables is hugely disruptive to the landscape and its archaeology.

Tarchon would not proceed without an Ofgem-approved cap and floor agreement. Ofgem’s press release stated:

“Interconnectors can make energy supply cleaner, cheaper and more secure”,

but none of those three claims applies to Tarchon. The ESO report found that Tarchon will not increase UK electricity security even in the most extreme case and will not help us to achieve net zero. In fact, our exports reduce Germany’s carbon emissions but put ours up, because we continue to rely on fossil fuels to keep the lights on in London.

It gets worse: ESO’s analysis of the system constraints concludes that power will be exported even when overall UK prices are high. The constrained northern boundary into London means that Tarchon is expected to export power 80% of the time, regardless of domestic prices.

What about the cost to UK electricity bill payers? Tarchon will cost £5 billion, underwritten by electricity bill payers, and at least £7 billion in returns to the largely foreign investors will be protected. We cannot allow it to proceed. The fact that high-voltage direct current undergrounding has emerged as a viable option means that the Government should pause the great national grid upgrade. In Germany, HVDC is the default option—

[Mrs Pauline Latham (in the Chair)]

Order. I call Ben Lake.

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[Dave Doogan (Angus) (SNP)]

It is nice to see you in the Chair, Mrs Latham. I offer a great many thanks to the hon. Member for Boston and Skegness (Matt Warman) for securing this important debate. It is clear that elected Members are consistent in their approach to the situation, no matter the colour of their rosette. I will seek as far as possible not to be too political in my observations, and I hope that I succeed in that ambition.

My constituents, like many others, are frustrated with the opacity of the dynamic The network owner and operators in the north of Scotland is Scottish and Southern Electricity Networks—the corresponding body in England and Wales is National Grid—and the process of holding it to account is extremely frustrating. With some legitimacy, SSEN will say, “We have been tasked by the ESO to deliver this much energy down this corridor with this price envelope and by this time,” and when we crunch those numbers, we end up with pylons. If we speak to the ESO about that frustration, it says, “Oh, no, we are technology agnostic. We do not care how SSEN deliver that system—that is up to them—as long as it is consistent with our delivery schedules.” That is a clear disconnect from the outset.

The ESO has been guilty of gross complacency in anticipating that when delivering this level of civil engineering across sensitive parts of this island—we are talking purely about GB, rather than UK—people locally will say, “That’s okay. I don’t mind pylons. Just throw them up wherever you like and we will all get on with it.” That is not acceptable or legitimate, and that is distinct from the ambition to decarbonise our electricity system and the ambitions of net zero.

There is no debate about the need to transmit the electricity from where it is generated to where it is required, but it is about how we do that. We have heard a whole range of compelling arguments this afternoon about why we should look at alternative solutions, and I will touch on some of the difficulty that my constituents in Angus face around that dynamic. These are very exercised, intelligent and experienced people saying no to the prospect of pylons going through the northern opening of the big Strath—Strathmore. I am not sure if hon. Members are familiar with Angus. We have heard about the garden of Wales, and I can assure everyone that Angus is the garden of Scotland. Strathmore is not designated to be an area of outstanding natural beauty, but I assure everyone that it is beautiful, outstanding and natural.

We already have a 275 kV line coming down the Strath. We have a prospect under the ESO’s holistic network design of an additional 400 kV pylon line coming down the Strath. We now learn that under the TCSNP, which is nothing to do with my party—apparently it is a strategic network plan, but it is not very strategic, if you ask me—there is an additional 400 kV line to come down the Strath. It is not realistic or fair to think that people will say, “Oh well, that’s okay. We accept that three towering lines of pylons must come down one of the most beautiful parts of Scotland.” It is not fair to constituents across GB who are similarly affected, and it is not fair to our collective ambition to decarbonise our energy system. Undoubtedly, because of the complacency of the ESO—goodness knows what Ofgem was doing throughout all this—there will be planning appeals, delays and public inquiries. Where does that leave our ambitions for net zero?

For context, Scotland generates 11.4 GW from wind—we are probably delivering against that today. We are connected to England, where the market largely is, by a 6 GW interconnector, so we can see the scale of the gap we are talking about. The wind generation capacity that has been developed in Scotland by both the Scottish and the UK Governments did not happen overnight; it has happened over two decades. It is therefore a fairly ignominious position for the UK Government to find themselves in, where there is such a chronic mismatch between transmission capacity and generating capacity. That is important, because the roll-out of the network is a firefight. It has not been done in a planned and strategic manner, with proper stakeholder engagement and management. It is being rushed through, in relative terms, overnight because the situation is critical.

We heard from the right hon. Member for Suffolk Coastal (Dr Coffey) about the need to pay generators curtailment fees because we cannot get their energy on to the network, but that is only half the story. We are not factoring in the cost of switching on gas to replace the energy we need from wind but that we cannot get to the market because of constraints on the network. Then, when we start to look at the gross effect of that cost build-up, we open the door to looking at more expensive infrastructure other than pylons and still having a sound business case. That is the ambition of constituents in Angus and in many other places as well.

Undergrounding and, in particular, offshoring need to be looked at, for interconnectors going from Scotland to England, where the population centres are towards the south. Offshoring should be the default position until we can make a robust argument against such an ambition, for which the challenges are manifold. In Angus, we have the very start of where seed potatoes can be grown. It is a tremendously important cash crop for Scotland, which cannot really be grown elsewhere in GB. However, crops are literally blighted by potato cyst nematode, which goes from farm to farm. What, therefore, happens when all the construction vehicles are going from farm to farm in my part of the world and in other places in the north of Scotland? It is not acceptable.

I listened with care to the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) and I accept as an actual matter of fact the role of the Scottish Government in planning and their ability to make a decision. Let us not, however, try and saddle the Scottish Government with the burden of the impact on communities. They are just as keen as the UK Government to see network capacity developed, but, unlike the UK Government and their agencies, they are not mandating how it should be developed. They will take a role under planning law—I am sure I do not need to explain that planning is quasi-judicial and a decision is not made on the basis of how someone is feeling one day—and transact that consistent with policy in Scotland. However, this is not a challenge of the Scottish Government’s creation. Energy is a reserved matter for the UK Government and the UK Parliament, so the genesis of the challenge remains here at Westminster.

I want to underline that my constituents, and I am sure the constituents of everyone in this room, are talking about their need and their ambitions to see something more innovative and more realistic, consistent with their ambitions and the natural environment. A discussion is needed about cost-benefit analysis where the cost is not simply financial; it is about the cost to society, the cost to communities and the cost to the environment. That all needs to be factored in as well. It must also be understood that the infrastructure is disaggregated across 40 million billpayers and then, again, across many decades of return on capital invested by the infrastructure. It will last for many decades. When we are therefore initially confronted with a figure that is £1 billion, £2 billion, £3 billion or possibly £4 billion more expensive than option A, we have to look at what that means in terms of an actual cost to an actual billpayer per year. I am not satisfied that that type of analysis has been done.

My constituents, along with right hon. and hon. Members in this debate, are frustrated that they have neither the cost of the pylon route to come through their part of this island, nor a comparative analysis of what the undergrounding or subsea solution would be, other than that it would be expensive. That kind of nebulous nonsense does not wash with people. They will have to have some further detail on that.

Mrs Latham, I have no shortage of respect and admiration for the hon. Member for Bolsover (Mark Fletcher), but I am very disappointed that there is no Minister from the Department present to hear this debate. I trust—in fact, I am sure—that we will get a sturdy and robust response from the Minister here today, but it is a pity it was not one from the Department for Energy Security and Net Zero.

[Mrs Pauline Latham (in the Chair)]

For future reference, my name is pronounced “Layth-am”, not “Lath-am”.

[Dave Doogan]

Understood.

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[Mark Fletcher]

I thank the hon. Gentleman for that contribution. I have to be incredibly careful when it comes to the specifics of individual projects. He will appreciate, as he mentioned in his own speech, that there is a quasi-judicial role for the Department and for the Secretary of State, so he will forgive me if I do not comment on a specific case.

I recognise the concerns that communities have about energy infrastructure projects proposed in their areas, and hon. Members are right to raise that issue today. That is why, in last year’s autumn statement, the Chancellor announced proposals for a community benefits scheme for communities living near new transmission network infrastructure. That will see communities receive funding of £200,000 per kilometre of overhead lines in their area, £40,000 per kilometre of underground cables, and £200,000 per substation—and communities can decide how that funding is best spent locally. In addition to those generous community benefits, the Chancellor also announced that properties closest to the new transmission network infrastructure will receive electricity discounts of up to £1,000 per year for 10 years.

Of course, the electricity system needs to be expanded at a scale and a pace not seen for decades, but that must be done—and is being done—with community views at the forefront. That transformation will not only reduce household energy bills but foster skilled jobs and high-quality investment across Great Britain. Once again, I congratulate my hon. Friend the Member for Boston and Skegness, and I am incredibly conscious that he should have some time to finish up at the end. I will return to the Whips Office, where I will be silent forever more.

[Mrs Pauline Latham (in the Chair)]

Unfortunately, there is not time for the hon. Member to wind up.

Question put and agreed to.

Resolved,

That this House has considered pylons and upgrades to the national grid.