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Select Committee · Environmental Audit Committee

Enabling sustainable electrification of the UK economy

Status: Closed Opened: 4 May 2023 Closed: 24 May 2024 28 recommendations 25 conclusions 1 report

The Environmental Audit Committee (EAC) is to launch a new inquiry examining the challenges and opportunities arising from the increasing use of electricity to power the economy of Net Zero Britain. Read the call for evidence for more information about this inquiry.

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Reports

1 report
Title HC No. Published Items Response
Sixth Report - Enabling sustainable electrification of the … HC 278 24 May 2024 53 Responded

Recommendations & Conclusions

8 items
12 Recommendation Sixth Report - Enabling sustainable ele… Acknowledged

Support accelerated rollout of flexible energy technologies to homes and businesses by 2025.

We recommend that the Government support an accelerated rollout of flexible energy technologies to homes and businesses, at a minimum through the enhanced policy support envisaged under the Clean Heat Market Mechanism, by the end of 2025 at the latest. This rollout must be accompanied by clear and effective communication … Read more

Government response AI summary
The Government agrees on the critical need to accelerate flexible energy technologies and outlines ongoing steps to address heat pump deployment barriers, simplify consumer journeys, and provide advice. However, it defers future funding arrangements to a Spending Review and does not commit to the recommended …
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28 Conclusion Sixth Report - Enabling sustainable ele… Acknowledged

Onshoring essential energy infrastructure elements can strengthen supply chains and boost the UK economy.

Moving essential elements of the energy infrastructure supply chain into the UK is likely to strengthen the supply chain while creating jobs, improving the UK economy and protecting existing skills.

Government response AI summary
The government acknowledges the need for collective effort to address supply chain resilience, stating it will review the need for an electrification roadmap and set out its full approach to supporting UK supply chains in a forthcoming Industrial Strategy.
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33 Conclusion Sixth Report - Enabling sustainable ele… Acknowledged

Local authorities lack resources and expertise for effective clean energy planning applications.

Local authorities generally do not have the resources or in-house knowledge to manage the effective determination of the significant number of planning applications required for the rapid growth of clean energy infrastructure.

Government response AI summary
The government acknowledges the need for sufficient resources in local planning authorities, highlighting past consultations on increasing planning fees and reviewing how to deploy additional support from stamp duty surcharges, in addition to having a dedicated Planning Capacity and Capability.
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41 Conclusion Sixth Report - Enabling sustainable ele… Acknowledged

Poorly executed community engagement and benefits hinder energy infrastructure development and acceptance

Engaging early and fully with local communities to explain why renewable energy infrastructure through their area is necessary and of benefit to them is essential to ensure positive public participation and acceptance. Badly-designed community benefits, or those forced upon communities without adequate consultation, can create tension and objection to new … Read more

Government response AI summary
The government agrees on the importance of community benefits to build support for development and is currently reviewing how to effectively deliver them, considering a combination of direct benefits and community funds, with details to be set out shortly.
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43 Conclusion Sixth Report - Enabling sustainable ele… Acknowledged

Community benefits accrue only after commissioning, delaying impact during planning and construction

Community benefits are only likely to become payable after the commissioning into service of infrastructure: so all the uncertainty of the planning process and disruption during construction will be felt before any benefits accrue.

Government response AI summary
The government clarifies that community funds are likely to be released once a project has secured planning and financing approvals, around the start of construction, and emphasizes the importance of early community engagement.
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45 Conclusion Sixth Report - Enabling sustainable ele… Acknowledged

Optimal governance structure for distributed energy system and local authority engagement remains unclear

The electrification of the economy will lead to a more distributed energy system and will require local government engagement. While some efforts are underway to understand the potential for governance reform between national policy making and local policy making, the optimal governance structure involving national government, regulator, FSO and local … Read more

Government response AI summary
The government agrees on the importance of appropriate governance and regulatory arrangements for NESO, detailing robust systems, Ofgem's oversight, strict board criteria, and a framework document outlining roles. These arrangements will be continually monitored.
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46 Conclusion Sixth Report - Enabling sustainable ele… Acknowledged

National Energy System Operator consolidating significant functions and responsibilities

The National Energy System Operator (NESO), an organisation currently under development, is consolidating a number of existing functions while also taking on a number of new responsibilities, such as giving advice to the Government and working with local authorities through a new regional energy system planning process. The NESO will … Read more

Government response AI summary
The government agrees with the importance of appropriate governance for NESO and outlines the robust systems, processes, and regulatory oversight by Ofgem, as well as the independent board appointments, framework document, and shareholder representation in place for the organisation. These arrangements will be continually monitored.
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49 Conclusion Sixth Report - Enabling sustainable ele… Acknowledged

Ultimate responsibility for energy security and decarbonisation remains unclear within Government

Energy security is vital to the UK’s national interest: responsibility within Government for promoting and ensuring energy security ought to be crystal clear. In a rapidly changing governance structure which includes new responsibilities for Ofgem and the new NESO body, it is unclear to us who holds ultimate responsibility for … Read more

Government response AI summary
The government states its mission to make Britain a clean energy superpower and plans to set out more detail on its approach to Clean Power by 2030, including how progress will be tracked, by the end of the year.
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Oral evidence sessions

5 sessions
Date Witnesses
12 Mar 2024 Eleanor Warburton · Ofgem, Emily Bourne · Department for Energy Security and Net Zero, Rt Hon Graham Stuart MP · Department for Energy Security and Net Zero View ↗
7 Feb 2024 Chris Hewett · Solar Energy UK, Ed Porter · Modo Energy, Kate Gilmartin · British Hydropower Association, Olivia Powis · Carbon Capture and Storage Association, Peter McCrory · RenewableUK, Professor Sir Chris Llewellyn Smith · University of Oxford, Susie Elks · E3G View ↗
17 Jan 2024 Barbara Hammond MBE · Low Carbon Hub IPS Ltd, Councillor Bridget Smith · District Councils Network, Craig Dolan · Heat Pump Association, Dan Stone · Centre for Sustainable Energy, Dr Rebecca Windemer · Regen, Rachel Fletcher · Octopus Energy, Tom Glover · RWE Generation View ↗
15 Nov 2023 Akshay Kaul · Ofgem, Claire Dykta · National Grid Electricity System Operator (ESO), Craig Dyke · National Grid Electricity System Operator, Eleanor Warburton · Ofgem, Gareth Hislop · Scottish Power Energy Networks, Roisin Quinn · National Grid Electricity Transmission, Susana Neves e Brookes · Scottish and Southern Electricity Networks (SSEN) Distribution View ↗
19 Jun 2023 Joanna Campbell · National Infrastructure Commission, Nick Winser CBE · Independent Government Advisor View ↗

Who gave evidence

25 witnesses
WitnessOrganisationSessions
Eleanor Warburton · Director of Energy Systems Management and Security Ofgem 2
Akshay Kaul · Director of Infrastructure and Security of Supply Ofgem 1
Barbara Hammond MBE · CEO and Executive Director Low Carbon Hub IPS Ltd 1
Chris Hewett · Chief Executive Solar Energy UK 1
Claire Dykta · Head of Markets National Grid Electricity System Operator (ESO) 1
Councillor Bridget Smith · Vice Chair District Councils Network 1
Craig Dolan · Chair Heat Pump Association 1
Craig Dyke · Head of Strategy and Regulation National Grid Electricity System Operator 1
Dan Stone · Policy and Influencing Officer Centre for Sustainable Energy 1
Dr Rebecca Windemer · Planning and communities lead Regen 1
Ed Porter · Director of Revenue Modo Energy 1
Emily Bourne · Director of Energy Systems and Networks Department for Energy Security and Net Zero 1
Gareth Hislop · Head of Market Development and Commercial Scottish Power Energy Networks 1
Joanna Campbell · Assistant Director National Infrastructure Commission 1
Kate Gilmartin · CEO British Hydropower Association 1
Nick Winser CBE · Electricity Networks Commissioner Independent Government Advisor 1
Olivia Powis · CEO Carbon Capture and Storage Association 1
Peter McCrory · Policy Manager - Networks and Charging RenewableUK 1
Professor Sir Chris Llewellyn Smith · Emeritus Professor of Physics University of Oxford 1
Rachel Fletcher · Director of Regulation and Economics Octopus Energy 1
Roisin Quinn · Director of Asset Operations National Grid Electricity Transmission 1
Rt Hon Graham Stuart MP · Minister of State (Minister for Energy Security a… Department for Energy Security and Net Zero 1
Susana Neves e Brookes · Head of Connections, Policy and Performance Scottish and Southern Electricity Networks (SSEN) Distribution 1
Susie Elks · Senior Policy Advisor E3G 1
Tom Glover · UK Country Chair RWE Generation 1