Electricity and Gas Transmission (Compensation) Bill

Peter Gibson Excerpts

Friday 25th November 2022 Commons Chamber

[Peter Gibson (Darlington) (Con)]

I congratulate my right hon. Friend the Member for North Somerset (Dr Fox) on bringing forward this Bill, and for his incredible luck in the private Members’ ballot in two consecutive parliamentary sessions. I know only too well what a privilege it is to guide a Bill through its legislative journey to the statute book. As has been mentioned, my right hon. Friend’s Down Syndrome Act was a hugely important piece of legislation. I am pleased to see that in his Bill for this Session, he is taking the opportunity to raise another important issue that impacts his constituents.

Following the declaration of interest by my hon. Friend the Member for North Herefordshire (Sir Bill Wiggin) in respect of his wayleave agreement, I will mention that I was once lucky enough to receive a one-off payment from National Grid for a cable that crossed the end of my garden.

An unprecedented level of new power generation is planned over the next decade to meet the demand for electricity, and to meet our CO2 reduction targets. The national grid must therefore have sufficient capacity. As the cost of transmitting electricity ultimately passes to customers, it is important for National Grid to find the best way of connecting new sources of power generation consistent with its duty to maintain an efficient, co-ordinated and economical system of electricity transmission.

The national grid is a nationally significant piece of infrastructure, and as such, I know National Grid will seek to obtain from the outset, by negotiation, permanent land rights for all new electricity transmission assets. That is consistent with National Grid’s approach for new underground electricity cables and gas transmission pipelines, where permanent land rights are also sought and obtained. Once National Grid has identified a final route alignment for proposed new electricity transmission assets, it will seek to enter into an agreement to grant an easement with owners and tenants of the land across and within which the new electricity transmission assets may be constructed.

The agreement enables National Grid to take entry on to the land, with notice and following the grant of the development consent order, to construct the new electricity transmission assets. The agreements also provide for changes in the final route alignment within a specified corridor as a consequence of public consultation, and during construction as a consequence of engineering requirements, surveys, and other routing factors. One construction is completed, the agreements permit National Grid to call for an easement in respect of the new, as-built electricity transmission assets.

The payment schedule for new electricity transmission assets sets out the amounts that will be paid for an easement. In return for a signed agreement to grant an easement, National Grid will pay 50% of the easement consideration to the landowner. On entry for construction, a further 25% of the easement consideration is paid, and the final 25% will be paid if and when the easement is completed by National Grid. National Grid also offers incentive payments for the early return of signed agreements. Those incentives are set out in the payment schedule for new electricity transmission assets. They are available only during an 18-week period after a notified date, once agreements are issued by National Grid to landowners for their approval and signature.

After the agreement has been signed, up to either completion of the easement or expiry of the agreement itself, landowners, tenants and occupiers are restricted from doing anything that would adversely affect National Grid’s ability to take and benefit from the easement should it need to do so. If landowners transfer their interest in the affected land, they must oblige the incoming owners to enter into a new agreement with National Grid on exactly the same terms.

Where National Grid is unable to obtain a voluntary agreement from a third party following the grant of a development consent order for new electricity transmission assets, it will seek to acquire the relevant land, or land rights over the land, through the compulsory acquisition powers granted to it through the development consent order. A copy of the order and a compulsory acquisition notice will be served by National Grid on the relevant third party and the notice will be posted on, or near to, the relevant land. Compensation will then be calculated and, if due, payable to the relevant third party in accordance with the relevant provisions of the land compensation legislation.

[Dr Fox]

There is a dispute system in place, but where cases go to the Upper Tribunal, high legal costs are paid by not only our constituents but National Grid—costs that, as my hon. Friend has said, are ultimately passed on to electricity payers. Would it not therefore be in the interests of all parties to have a clear, efficient and affordable dispute resolution system, rather than cases going to the Upper Tribunal and ultimately costing those of us who pay our electricity bills, as with this system?

[Peter Gibson]

I am grateful for that intervention. My right hon. Friend makes an important point. My right hon. Friend’s Bill is born out of issues that his constituents have faced whereby they have been unable to get fair compensation for distributions to their property or business in cases where land will be, or has been, subject to the acquisition of rights or land, through compulsion or by agreement, for the purposes of electricity and gas transmission.

This is an important issue and I completely agree with my right hon. Friend that we need to see improvement in this area. The Bill seeks to establish an independent mechanism to determine claims for compensation in cases such as the ones that have been outlined, where people or businesses feel that they have been unfairly treated.

I know that the Minister will have listened closely to all of the contributions from Members across the House, and I look forward to hearing her response on the various points raised. I know, too, that my right hon. Friend the Member for North Somerset will be seeking members for his Bill Committee in due course, and I happily put my name forward.