Source · Select Committees · Welsh Affairs Committee
Recommendation 1
1
Acknowledged
Paragraph: 40
We have heard that there are constraints on both the distribution and transmission grids in...
Conclusion
We have heard that there are constraints on both the distribution and transmission grids in Wales. Julie James MS told us Wales does not have the grid capacity it needs “right now”. However, Rt Hon Greg Hands MP told us that the grid is “fit for purpose today”. We are concerned by the difference in understanding between the UK and Welsh Governments over current grid capacity in Wales.
Government Response Summary
The government recognises the challenges faced in Wales and evidence provided and states that network regulation is a matter for Ofgem.
Paragraph Reference:
40
Government Response
Acknowledged
HM Government
Acknowledged
It is worth noting at the outset that constraints are a normal part of a healthy electricity network system, as expanding the network to remove all constraints would never be cost efficient. However, excessive constraints need to be avoided and the Government recognises the challenges faced in Wales and welcomes the evidence provided to this Committee’s inquiry on this matter. Network regulation, including ensuring sufficient investment in network infrastructure to meet the predicted increase in electricity demands due to electrification of transport, heat and other sectors, is a matter for Ofgem, as the independent regulator. Ofgem uses the