Select committee: Welsh Affairs Committee
Conclusion 10
First Report - Grid Capacity in Wales
Published 21 Oct 2022
Paragraph 73
Addressed to Wales Office
Welsh Affairs Committee Grid capacity in Wales All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
We are encouraged that Ofgem is reviewing connection arrangements and we look forward to hearing more about the progress being made in the run up to 1 April 2023. We consider that due to the tight timeframes set by government net zero targets, urgent work should be done to overcome prohibitive upfront costs and the ‘chicken and egg’ situation by incentivising developers to share grid connection and reinforcement costs.
From: Welsh Affairs Committee, First Report - Grid Capacity in Wales (HC 218), paragraph 73, 21 October 2022
Government response
The government responded to the whole report on 24 January 2023 (deadline 21 December 2022).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government welcomes the Committee's report and says it will continue work on strategic planning, regulatory approval, planning consents and streamlining connections, while declining some recommendations on working groups, legislation and Ofgem's duty.
- On Ofgem's primary duty, the government "does not consider an amendment to Ofgem's primary duty to be necessary", saying the duty to protect consumers' interests already includes reducing emissions in line with net zero.
- On community energy, it will not establish a working group "at this time", citing the existing Community Energy Contact Group, and has "no plans to bring forward legislative proposals, at this time".
- On connection costs, it notes that from April 2023 Ofgem will socialise a further proportion of network reinforcement costs for distribution connection customers, which "will reduce the upfront cost".
- On planning, it intends to publish a full NSIP Reform Action Plan and consultations "in due course", and says revised energy National Policy Statements will be published "soon".