Source · Select Committees · Environmental Audit Committee
Sixth Report - Enabling sustainable electrification of the economy
Environmental Audit Committee
HC 278
Published 24 May 2024
Recommendations
3
Accepted
Para 21
Establish multidisciplinary planning cell to develop detailed delivery pathway for decarbonised grid by 2024.
Recommendation
We recommend that the Government, together with Ofgem and the National Energy System Operator, establish a multidisciplinary planning cell tasked with the development of a detailed pathway to the decarbonised grid. This unit ought to be commissioned to produce a …
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Government Response Summary
The government published its decision to introduce a cap and floor scheme for Long Duration Electricity Storage (LDES), with the first application round expected in 2025. They also committed to designing a new business model for hydrogen storage infrastructure by 2025.
7
Deferred
Para 46
Address urgent barriers to long-term energy storage through government investment and policy reforms.
Recommendation
The Government must address as a matter of urgency the barriers to long term energy storage for the UK to ensure it can provide its citizens with clean and reliable energy during periods of limited renewable generation. This can be …
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Government Response Summary
The government's response focuses on Ofgem's work with the ENA to make connections queue data publicly available monthly, which does not directly address the broader policy and investment barriers to long-term energy storage or the suggested regulatory reforms.
8
Deferred
Para 47
Publish comprehensive energy storage strategy by 2025, detailing required capacity for net zero.
Recommendation
By the end of 2025 at the latest, the Government must publish an energy storage strategy, underpinned by robust analysis, that indicates to the market the capacity and type of both short-term and long-term energy storage which will be required …
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Government Response Summary
The government did not commit to publishing an energy storage strategy by 2025; instead, it outlined ongoing work by Ofgem and NESO on connections reform to accelerate connections for renewable generation and storage projects.
10
Deferred
Para 64
Publish rationale and analysis for energy transition policy changes, assessing net zero impact.
Recommendation
We are nevertheless concerned that recent Government adjustments to the incentives for take-up of these technologies by consumers may affect the capacity of the grid to deliver the benefits of flexibility in the short- to-medium-term: this in turn may affect …
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Government Response Summary
The government deflected the recommendation to publish rationales and impact assessments for policy changes by detailing Ofgem's role in setting electricity network price controls and implementing agile investment mechanisms to support strategic grid investment.
12
Acknowledged
Para 66
Support accelerated rollout of flexible energy technologies to homes and businesses by 2025.
Recommendation
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. …
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Government Response 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 enhanced policy support by the end of 2025.
13
Deferred
Expedite Ofgem's programme to deliver market-wide half-hourly settlement and report progress.
Recommendation
We further recommend that Ofgem expedite its programme to deliver market-wide half-hourly settlement. We expect Ofgem to provide a progress report in response to this recommendation, setting out current barriers to delivery of this objective, identifying measures to overcome them, …
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Government Response Summary
The government's response does not address the recommendation for Ofgem to expedite market-wide half-hourly settlement or provide a progress report. Instead, it discusses financial support and incentives for electricity network manufacturing supply chains, promising an update on wider incentives shortly.
18
Deferred
Para 91
Actively monitor grid connection reforms and advance demonstrably ready projects to the front of the queue.
Recommendation
We recommend that the Department for Energy Security and Net Zero and Ofgem actively monitor the progress of connection reform initiatives and the delivery of the transmission capacity required to facilitate new grid connections, and, where appropriate, streamline the measures …
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Government Response Summary
The government's response focuses on accelerating infrastructure delivery through a new Bill and promoting renewable energy via changes to the National Planning Policy Framework, but does not specifically address monitoring existing connection reform initiatives or Ofgem reviewing its milestone queue reforms to advance ready projects.
19
Accepted
Para 92
Monitor and publicly report monthly on grid connection queue status and management progress.
Recommendation
We recommend that, in the interests of transparency, Ofgem monitor and publicly report on the status of the queue and its progress in managing it on a monthly basis.
Government Response Summary
The government states that Ofgem has already worked with the Energy Networks Association to collect and publicly publish data on the connections queue status on a monthly basis via the ENA website.
22
Accepted in Part
Para 95
Ensure developers can access the fullest range of providers for grid connection facilities.
Recommendation
We recommend that Ofgem work with the NESO, the Department for Energy Security and Net Zero and the Energy Networks Association to ensure that developers can call on the fullest possible range of providers when seeking to connect their generation …
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Government Response Summary
Ofgem and DESNZ recognize the value of competition and are working with Ofgem and NESO to begin the first competition for onshore electricity transmission network build. However, for a fuller range of providers at transmission level, they welcome proposals from industry through the code modification process.
24
Deferred
Para 98
Examine electricity network price controls and modify to incentivise immediate network reform.
Recommendation
We recommend that the Government examine the operation of the current ED2 (distribution) and T2 (transmission) price control periods to establish whether the measures are driving the necessary connections and increases in capacity. If not, these price control periods should …
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Government Response Summary
The government's response focuses on Ofgem's role in regulating NESO and developing the Regional Energy Strategic Plan (RESP), which will feed into future price control processes, but it does not commit to examining the operation of the current ED2 and T2 price control periods or to re-opening or modifying them to incentivize immediate network reform.
25
Accepted
Para 99
Encourage anticipatory network investment to meet likely future demands on the electricity system.
Recommendation
A general focus by Ofgem on ‘just in time’ network investment means that limited current network capacity can be a barrier to new connections. We recommend that the Government and Ofgem work together to encourage anticipatory investment where it is …
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Government Response Summary
The Government accepts the recommendation, stating it will work with Ofgem to encourage anticipatory investment through a supportive investment regime and reform of the network price control process. NESO will develop a Strategic Spatial Energy Plan by 2026 and a Centralised Strategic Network Plan by 2027 to guide strategic investment.
27
Deferred
Create and publish an electrification supply chain roadmap to ensure energy sector resilience within three months.
Recommendation
We recommend that, alongside managing investor confidence through market certainty, the Government work with businesses in the sector to create an electrification supply chain roadmap, setting out how the Government will seek to ensure that the energy sector supply chain …
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Government Response Summary
The government states it will be reviewing the need for an electrification roadmap, rather than committing to create and publish one, and plans to set out its full approach to supporting UK supply chains in a forthcoming Industrial Strategy.
29
Deferred
Para 108
Provide financial incentives to establish essential electricity infrastructure supply chain elements in the UK.
Recommendation
We recommend that the Government work with industry to provide incentives, including financial support, to ensure that essential elements of the electricity infrastructure supply chain are based in the UK, so as to counter competitive incentives from other countries racing …
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Government Response Summary
The government states that clean energy industries are a priority growth sector and that it will set out its full approach to supporting UK supply chains in the forthcoming Industrial Strategy, without committing to immediate financial incentives for basing essential supply chain elements in the UK.
31
Accepted in Part
Para 113
Conduct a nationwide electrification skills needs assessment and develop a comprehensive plan addressing gaps.
Recommendation
Ministers must communicate clearly to industry their expectations on the rollout of energy and electrification infrastructure to meet Government policy objectives in a timely fashion. In tandem with this, we recommend that the Government conduct a nationwide electrification skills needs …
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Government Response Summary
The government has established the Clean Energy Workforce Office to coordinate skills activity and improve data on the UK's clean energy workforce, which will include monitoring the labor market, but does not explicitly commit to a specific nationwide electrification skills needs assessment or the full range of suggested training and education programmes.
32
Accepted
Define 'green jobs' and publish methodology for measuring progress towards green jobs targets.
Recommendation
Despite recognising the electrification skills shortage in the UK, the Government has delayed the publication of its green skills plan. We reinforce the recommendation from our 2021 report that the Government sets out how it will measure progress towards its …
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Government Response Summary
The government published a Green Skills Plan and a Green Jobs and Skills Report with an updated estimate of green jobs using ONS statistics. It states the Office will focus on improving data consistency and availability for monitoring and evaluation, drawing from various sources.
34
Accepted in Part
Para 129
Ensure planning authorities have adequate resources and skills to prevent energy infrastructure bottlenecks.
Recommendation
We urge the Government to ensure that the planning authorities have adequate resources to obtain and develop the skills and capacity necessary to prevent the planning system being a bottleneck to the rollout of energy infrastructure. The increase in planning …
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Government Response Summary
The government acknowledges the need for sufficient resources for local planning authorities and has consulted on increasing planning fees and allowing LAs to set their own fees. It is also reviewing how to deploy additional support from increased stamp duty, but does not explicitly commit to additional government funding or ring-fencing finances as requested.
35
Accepted
Para 130
Develop a plan to ensure planning authorities are resourced for timely energy infrastructure applications.
Recommendation
We recommend that the Government develop a plan to ensure that planning authorities, are sufficiently well resourced, in terms of personnel and expertise, to support the timely determination of planning applications for energy infrastructure and facilities. 48 Enabling sustainable electrification …
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Government Response Summary
The government has established the Innovation and Capacity Fund, appointed the Planning Advisory Service to create an NSIP network for local authorities, and freed up £9.1M for recruitment into planning roles to ensure sufficient resources and expertise for handling energy infrastructure planning applications.
37
Accepted
Para 132
Review planning regulations for electricity infrastructure, aligning provisions and mandating new-build solar
Recommendation
The Government should further review the application of planning regulations to electricity infrastructure so as to bring the relevant provisions of the Nationally Significant Infrastructure Projects regime and the National Planning Policy Framework into full alignment. We recommend that the …
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Government Response Summary
The government agrees and will accelerate infrastructure delivery via the Planning and Infrastructure Bill. They are consulting on measures in the NPPF for onshore wind and solar and revising NSIP thresholds, and future standards next year will set new buildings on a path away from fossil fuels to incorporate solar.
39
Accepted
Para 138
Develop a major public engagement strategy to communicate economic electrification and infrastructure needs
Recommendation
We recommend that the Government develop a major public engagement strategy to communicate the need for further electrification of the economy, its likely benefits and the infrastructure development it will entail.
Government Response Summary
The government commits to launching an overarching national public awareness campaign in early 2025, developed by the Electricity Networks Association and Transmission Owners, to communicate the need and benefits of electricity network infrastructure.
40
Accepted
Para 139
Require meaningful developer-led community engagement and develop best practice guidance for operators
Recommendation
The Government must also require meaningful developer-led community engagement at the outset of major electricity infrastructure projects. We recommend that Ministers also develop guidance for operators and local authorities on best practice in community engagement.
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Government Response Summary
The government notes existing planning routes and the NSIP regime already require developer engagement. They further state that new guidance for the pre-application stage for Nationally Significant Infrastructure Projects was launched in April 2024, addressing the request for best practice guidance.
42
Deferred
Para 145
Expedite implementation of community benefit proposals, develop toolkit, and regularly review effectiveness
Recommendation
We recommend that the Government expedite the implementation of its current proposals for community benefits to be considered as part of community engagement in the delivery of certain transmission projects. A toolkit of illustrative community benefits and potential levels of …
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Government Response Summary
The government is currently reviewing how to effectively deliver community benefits for electricity transmission network infrastructure, considering a combination of direct benefits and community funds, with further details to be set out shortly. It also mentions NESO developing Electricity Transmission Design Principles.
44
Not Addressed
Assess merits of delivering a proportion of community benefit earlier in the planning process
Recommendation
We recommend that Ministers assess the merits of providing that a proportion of community benefit be delivered earlier in the process, for instance from the date of grant of planning consent. (Paragraph 147) Governance, policy and regulatory reform to support …
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Government Response Summary
The government states that community funds are likely to be released around the start of construction, following planning and financing approvals, and highlights the role of early engagement, but does not commit to assessing the merits of delivering benefits earlier.
47
Accepted
Para 162
Establish robust corporate governance and performance review arrangements for the National Energy System Operator
Recommendation
We recommend that Ministers establish appropriate arrangements for review of the role and performance of the NESO against the benefits it is expected to deliver to the GB energy system, including good value for money and high performance. It is …
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Government Response Summary
The government accepts the recommendation and has established robust governance and regulatory arrangements for NESO, including Ofgem's ongoing monitoring and biennial performance reviews, strict board appointment criteria, an independent Chair, and UKGI as Shareholder Representative. These arrangements will be continuously monitored.
48
Accepted in Part
Para 163
Seek regular independent appraisal of NESO’s role in regional energy system planning
Recommendation
The incipient role of the NESO in local energy planning ought to be subject to periodic review to ensure that its engagement is appropriate. We recommend that the NESO seek regular independent appraisal of its role in regional energy system …
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Government Response Summary
The government states that Ofgem will provide oversight of NESO's delivery and that regional Strategic Boards and the price control process will serve as appraisal mechanisms, but explicitly notes that Ofgem has not set out plans for additional independent assessment of NESO’s role.
50
Accepted
Maintain clear indicators of progress on decarbonisation and energy security for public tracking
Recommendation
We recommend that Government and Ofgem should maintain clear indicators of progress on decarbonisation and energy security to allow simple public progress tracking of the proportion of renewable electricity on the system compared to expected needs, the security of supply …
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Government Response Summary
The government states its mission to make Britain a clean energy superpower and expects to set out more detail on its approach to delivering Clean Power by 2030 by the end of the year, explicitly mentioning how progress will be tracked.
51
Accepted
Para 174
Actively support renewable energy generation paired with sufficient storage for UK energy self-reliance
Recommendation
Renewable energy generation paired with sufficient energy storage will allow the UK to become more self-reliant, secure national energy supplies and provide a buffer against energy price hikes. This is a future that the UK should embrace, and that the …
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Government Response Summary
The government agrees on the importance of long-duration energy storage, has decided to introduce a cap and floor scheme for LDES with a first application round expected in 2025, and is committed to designing a new business model for hydrogen storage by 2025.
52
Accepted
Para 175
Establish decarbonisation as a strategic Government priority informing clear industry direction
Recommendation
We recommend that the Government take steps to ensure that decarbonisation, alongside energy security, is at the forefront of all energy discussions. Decarbonisation of the energy system must be established as strategic Government priority, informing clear and unambiguous direction to …
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Government Response Summary
The government states its mission to make Britain a clean energy superpower with a goal of Clean Power by 2030, and is working with industry to produce a plan outlining bold, tangible actions for delivery.
53
Deferred
Provide a clear definition of 'subject to security of supply' condition in 2035 target
Recommendation
We support recommendation 2 of the April 2023 report of the Business, Energy and Industrial Strategy Committee, on Decarbonising the power sector, proposing that the Government define the proviso ‘subject to security of supply’ condition in its 2035 target. Since …
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Government Response Summary
The government defers providing a clear definition for "subject to security of supply", stating it expects to set out more detail on its approach to delivering Clean Power by 2030, including how security of supply will be ensured, by the end of the year.
Conclusions (25)
1
Conclusion
Accepted
Para 19
The Government has set stretching overall ambitions for the generating capacity required to supply the GB electricity grid with decarbonised energy by 2035. To meet these, current capacity will have to increase by 250% in a little over a decade. Planning for this wholesale electrification of the economy ought to …
Government Response Summary
The government has established the 2030 Clean Power Unit and commissioned NESO for independent advice on the pathway to clean power. They will review this advice and publish a Clean Power 2030 Action Plan by year-end, with further strategic plans from NESO in 2026 and 2027.
2
Conclusion
Accepted
Para 20
While we welcome the commissioning of a Centralised Strategic Network Plan and a Strategic Spatial Energy Plan, the relationship between the two is unclear: unless they are developed in tandem, in an environment where the relationship between the two is actively nurtured, there is an evident risk that the two …
Government Response Summary
The government agrees and is establishing a 2030 Clean Power Unit, reviewing NESO's advice, and will publish a Clean Power 2030 Action Plan by year-end. NESO will produce the CSNP in 2027, which will be informed by the Strategic Spatial Energy Plan expected in 2026, addressing the need for a unified approach.
4
Conclusion
Accepted
Para 43
Currently the UK relies on mostly imported gas for electricity system balancing needs. Low carbon long-term energy storage has the potential to reduce the UK’s carbon impact whilst maintaining or improving its levels of energy security.
Government Response Summary
The government agrees on accelerating clean energy technologies and is taking steps to address barriers to heat pump deployment, including improving affordability, simplifying consumer journeys, and building resilient supply chains. They are also creating a single online access point for consumer advice and funding on clean heat and energy efficiency.
5
Conclusion
Accepted
Para 44
While short-term energy storage has some market drivers, the development of long-term, inter-seasonal storage at the scale expected to be required faces market, policy and regulatory barriers. The UK economy will require a significant level of low carbon energy storage of this type in order to achieve the Government’s net …
Government Response Summary
The government notes the importance of Market-wide Half-Hourly Settlement (MHHS) for demand-side response and provides a detailed update on its implementation. Ofgem has approved a delay to MHHS completion until July-December 2027, outlining actions to mitigate further risks.
6
Conclusion
Accepted
The form that this energy storage should take has not been made clear by the Government. It is by no means clear to us that Ministers have grasped the scale of the storage facilities likely to be required, nor the Government action likely to be necessary either in providing long-term …
Government Response Summary
The government and Ofgem are working to accelerate grid connections by granting urgency status to code modification proposals and intending to legislate for connections reform. NESO will submit proposals by end of 2024, with a decision expected in early 2025.
9
Conclusion
Accepted
Para 63
The benefits to the energy sector of developing grid flexibility are substantial. These benefits are underpinned and sustained by increased usage of decarbonised consumer technologies such as smart meters, heat pumps and electric vehicles in ways which make best use of the energy supply.
Government Response Summary
The government is working with DESNZ and ENA to ensure developers can access a full range of connection providers, welcoming industry proposals for transmission level competition. They are also working with Ofgem and NESO to initiate the first competition for onshore electricity transmission network build.
11
Conclusion
Accepted
Para 65
The flexibility in the GB energy system provided by the development of demand- side response and energy storage capacity can provide significant cost savings to consumers. But the current slow rate of rollout and take-up of flexible technologies which can benefit from demand-side response is delaying the realisation of these …
Government Response Summary
The government outlined plans to ensure strategic investment ahead of need in GB's electricity networks, with Ofgem working to make the RIIO-ET3 price control agile and forward-facing. NESO will also develop Strategic Spatial Energy Plans (2026) and a Centralised Strategic Network Plan (2027) to guide major network investment.
14
Conclusion
Deferred
Para 87
Ofgem and the Energy System Operator have sought to improve grid connection timeframes through reforming grid queue procedures and introducing milestones. Early evidence suggests that the reforms introduced to date appear not to have yet had the immediate and radical effect on reducing grid connection times which they were designed …
Government Response Summary
The government's response focuses on the creation of the Office for Clean Energy Jobs to address workforce skills and training in the energy sector, rather than directly addressing the committee's observation that grid connection reforms have not yet reduced connection times.
15
Conclusion
Deferred
Para 88
Overall visibility of the grid connections queue is limited, and it is possible that the immediate effect of the reforms introduced has been to lengthen the connections queue as developers react to the new regime. While we welcome the Ofgem project milestone reforms which took effect in November 2023, the …
Government Response Summary
The government's response discusses the definition of green jobs and the role of the Office for Clean Energy Jobs in developing skills and monitoring the clean energy workforce, without addressing the committee's observations on grid connections queue visibility or the impact of recent reforms.
16
Conclusion
Deferred
Para 89
Delivery of renewable energy projects at pace, and securing their connection to the transmission network, is essential to achieving the generation capacity required under the Government’s strategy for energy security. The connection of generation capacity to the grid is being held up by delays to the ‘critical path’ of grid …
Government Response Summary
The government's response addresses proposals to increase planning fees and support for local planning authorities, funded by the stamp duty surcharge, rather than directly detailing further work to reduce grid connection delays for renewable energy projects.
17
Conclusion
Deferred
Para 90
Sustained and consistent action by Government and the regulator will be required to manage the grid connections queue down so that commissioned renewable generation projects are able to deliver outputs to the grid without unreasonable delays.
Government Response Summary
The government response focuses on initiatives to improve planning capacity for Nationally Significant Infrastructure Projects through the Planning Advisory Service, recruitment funding, and cost-recovery, rather than directly addressing how it will manage down the existing grid connections queue for commissioned renewable generation projects.
20
Conclusion
Deferred
The Government and Ofgem must implement in full the changes proposed in the Connections Action Plan. This must entail, for example, the prioritisation of short- term grid requirements, so as to incentivise network operators to prioritise renewable energy connections. The connection of grid inputs from solar and wind, generation, and …
Government Response Summary
The government's response outlines a planned national public awareness campaign for early 2025 to promote the importance of new electricity network infrastructure, which does not address the recommendation to implement the Connections Action Plan in full or prioritise renewable energy connections.
21
Conclusion
Deferred
Para 94
We recognise the rationale for the current restrictions on the commissioning and construction of connections to regional substations. The GB electricity network must be constructed to certain minimum standards which ensure coherence, reliability and interoperability, under arrangements which provide long-term certainty over responsibility for maintenance. Nevertheless, we consider that there …
Government Response Summary
The government's response focuses on reviewing mechanisms for delivering community benefits and mitigating visual and community impacts from new electricity transmission infrastructure, rather than directly addressing the committee's suggestion of authorising experienced third parties to build connections to accelerate grid expansion.
23
Conclusion
Accepted
Para 97
We consider that the current model of Ofgem electricity network regulation, based around lengthy multi-year business plans, risks not being responsive enough to an energy system which is in rapid flux. The present regulatory model locks in market controls over many years: in the current climate, this risks slowing down …
Government Response Summary
The government agrees with the underlying concern and outlines robust governance and regulatory arrangements for the National Energy System Operator (NESO), including Ofgem's ongoing performance monitoring, biennial reviews, oversight of remuneration, and strict criteria for board appointments, alongside a clear framework document and new independent Chair.
26
Conclusion
Deferred
Para 105
Energy infrastructure supply chains are often very fragile and are affected by fierce global competition. The shoring up of these supply chains serving the UK’s electrification requirements will require urgent and significant anticipatory investment to ensure that the rollout of infrastructure can take place at reasonable value for money.
Government Response Summary
The government acknowledges challenges in supply chain resilience and states it will review the need for an electrification roadmap and set out its full approach in a forthcoming Industrial Strategy. It also highlights existing initiatives and Ofgem's plan to introduce an advance procurement mechanism from early 2025.
28
Conclusion
Acknowledged
Para 107
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 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.
30
Conclusion
Accepted
Para 112
The UK workforce is currently deficient in many of the skills relevant to several aspects of energy decarbonisation. At present the information available on the scale of the problem is insufficiently detailed to inform good policy making.
Government Response Summary
The government acknowledges skill deficiencies, highlighting existing initiatives like the Green Skills Plan and Green Jobs and Skills Report, and states it is working with ONS to improve green jobs data. It also established the Clean Energy Workforce Office to coordinate skills activity.
33
Conclusion
Acknowledged
Para 128
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 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.
36
Conclusion
Accepted
Para 131
Despite recent reforms to the Nationally Significant Infrastructure Projects regime in respect of energy infrastructure and to the National Planning Policy Framework, we are not convinced that the current design of the planning system is adequate to balance local concerns and interests against the need for rapid rollout of electricity …
Government Response Summary
The government agrees with the importance of supporting renewables infrastructure and states it will accelerate delivery through the Planning and Infrastructure Bill, consult on extra measures in the NPPF, and introduce future standards for new homes to boost clean energy.
38
Conclusion
Accepted
Para 137
Early, well-run community engagement is an essential aspect of successful rollout of energy infrastructure. Communities who are engaged and invested, and who can have input into their local infrastructure, are more likely to accept a greater level of infrastructure and support the energy transition more broadly.
Government Response Summary
The government acknowledges the importance of community engagement, stating that existing planning routes (NPPF, NSIP regime) already encourage and mandate pre-application community engagement. They also recently launched updated guidance for the pre-application stage of Nationally Significant Infrastructure Projects in April 2024.
41
Conclusion
Acknowledged
Para 144
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 …
Government Response 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.
43
Conclusion
Acknowledged
Para 146
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 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.
45
Conclusion
Acknowledged
Para 160
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 …
Government Response 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.
46
Conclusion
Acknowledged
Para 161
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 …
Government Response 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.
49
Conclusion
Acknowledged
Para 171
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 …
Government Response 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.