Source · Select Committees · Environmental Audit Committee
Sixth Report - Enabling sustainable electrification of the economy
Environmental Audit Committee
HC 278
Published 24 May 2024
Recommendations
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.
Conclusions (7)
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.
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.
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.