Baroness Coffey:

Moved by Baroness Coffey

82C: Clause 26, page 35, line 2, after “transmission” insert “and generation” Member’s explanatory statementThis Amendment and others in the name of Baroness Coffey extend benefits schemes to energy generation infrastructure and requires them to be in place, including for any infrastructure still being under construction at the time of Royal Assent of this Act.

My Lords, I will speak to Amendment 82C; I have also tabled a number of other amendments in this group. In essence, this amendment considers bill discounts and community benefits.

I think it is fair to say that the Government have recognised the need for some benefits, but they have not been generous enough, in my view. That is why I also strongly support Amendment 83, tabled by my noble friends on the front bench, to make sure that we are sufficiently generous. I am convinced that that will go a long way to persuading—or at least giving some comfort to—householders in large parts of our United Kingdom who will suffer some of the consequential impacts of the acceleration of renewable energy involving pylons and similar.

In essence, I am also concerned that we seem to have lost the amount of electricity generation happening around the country. It seemed quite odd to me that people might get compensation for there being a pylon within 500 metres of them, but people living next to the generation of new substations and new nuclear power stations are not, as it stands, intended to receive any community benefit.

One of the successes of the French Government was to try to reduce the electricity Bills of people living close to generation. That has long been considered a sensible way forward for a local community. I am not saying that everybody in those local communities wants to be, to use their words, “bought off” by a reduction on their bill, but it would go a considerable way with some of the frustration in the preparation of those huge construction projects as well as being an ongoing reminder that they are living near a nuclear power station. They may not have realised one was going to be built there—or a substation, or the like—when they moved to that area.

Clause 26 enables the establishment of the energy bill discount scheme. I have tabled a couple of amendments, that it should not be “may” but “must”. I am conscious that the noble Earl, Lord Russell, has also included “must” in Amendment 86. That matters to give absolute certainty to local communities that this will happen and that we will not have to wait for further consultation, commencements and the like, and that it will actually be done.

It is important that we consider not just nuclear, which I have referred to already—I do not think that I would qualify for any of that, by the way; I do not live too far away from Sizewell C, but nevertheless, there are plenty of people who qualify. We should also consider it for other energy projects, including wind farms and the like, especially recognising the Government’s proposals.

The Government’s proposed discount is only 25% of the £1,000 bill discount that the previous Government suggested, which has already been referred to in Amendment 83. However, it is clear that we need to make sure this gets to the households, so there are parts of this clause which are absolutely right to be included by the Government.

On Amendment 86, tabled by the noble Earl, Lord Russell, I recall that I was a Parliamentary Private Secretary to Michael Fallon a long time ago. I think it was back in 2013 that we started discussing what amount of money local communities should get. That reflects quite how long this discussion has been going on for. At one point, it was about business rate revenues: what would be retained, what would be kept by the council and what would be given to bill payers. It is important to make sure that as much of this money goes directly to local people as possible.

In terms of thinking this through, the Ministers may not have the answer today, and I do not expect them to have an answer on every single part of discussions about business rates retentions. However, it would be useful to understand where the Government have ended up on how much of business rates would be retained by local councils for the operation of all these different power plants which are busy being built around the country. I am sure that local government would welcome that clarity. Certainly, if 100% of the business rates of Sizewell C were to be retained in East Suffolk—indeed, by the new unitary authority in due course—they would be very happy indeed. That is not to say that East Suffolk keeps all that money; right now, it participates in pooling. Nevertheless, it is about recognising that this significant infrastructure in a very modest way provides some local community benefit which can be used for a variety of factors. It is for those reasons that generation as well as pylons need to be recognised in any bill discount scheme. I hope that the Government will be generous in that regard.

Forgive me, but there is one other amendment that I have forgotten to speak to. It would make sure that this cost is not borne by other taxpayers or bill payers. This needs to be considered in the cost of the project. We will discuss this more in the Moses Room on Wednesday, but, too often, when it seems that the Government are being very generous about discounts, rebates and similar, it is actually bill payers in other parts of the country who simply pay for that. We need to recognise that we have an electricity system that will of course bring some disruption in certain parts of the country where generation and other aspects of transmission are happening—we all need to pay our energy bills—but, for once, we should see some of the energy companies recognising the significant profits they will be making from those projects and that, for the future, they do not have to rely on bill payers paying for those benefits in the short term. I beg to move.

My Lords, Amendment 85 in my name seeks to explore the extent and purpose of the compensation proposed for new energy infrastructure, particularly with regard to electrical infrastructure that already exists. Can the Minister explain how the Clause enhances schemes that currently exist in the form of wayleave arrangements and payments for use of land for pylons, for example? Will the new scheme, for instance, be consistent with current arrangements for compensation?

Clarity about the parameters used to determine those residents who will qualify for compensation for the new infrastructure is important in understanding the scale of the scheme as anticipated by the Government. In a press statement, the Government stated that households within 500 metres of new or upgraded electricity transmission infrastructure will get electricity bill discounts of up to £2,500 over 10 years, and that this will see rural communities receive hundreds of pounds in their pockets for hosting vital infrastructure. It continues:

“Alongside money off Bills, separate new guidance will set out how developers should ensure communities hosting transmission infrastructure can benefit by funding projects like sports clubs, educational programmes or leisure facilities”.

That press release sets out the principles behind what the Government are proposing for new electricity infrastructure. As I am sure the Minister will know, there are already over 20,000 pre-existing pylons, which have been associated largely with coalfields. Hence, many of the clusters of pylons are close to those sites; in Yorkshire, for example. For those communities at that time, there was an expectation by the state that electricity transmission was for the common good. The question I want an answer to today is: where has that sense of common purpose gone? Why are we not still considering the idea that for major infrastructure projects where the whole nation will benefit communities will need to accept that for the benefit of everybody, as was done in the past?

In their press release, the Government state categorically that it is rural communities that will see huge financial benefit from the scheme. Obviously, I do not have any argument with that, but I question the argument for compensating residents in those communities now when communities with infrastructure constructed in a different generation were not. Can the Minister explain, for example, whether the compensation will be extended to the Yorkshire GREEN scheme, which is upgrading existing infrastructure down the spine of Yorkshire to enable more green infrastructure to be linked to the grid? It is an upgrade of older infrastructure. Will those communities benefit from this scheme?

Then there is the more fundamental question of fairness. Those residents who have had proximity to pylons for many years were never given compensation. In my view, the new scheme should be extended to include historic pylons, not in a retrospective way—I will not make that argument—but in the interests of fairness across the country. Those residents and communities with pre-existing pylons should benefit equally from a time-limited compensation scheme like that being proposed for new infrastructure. To deny residents that benefit when they have had years of the degrading of their countryside, not by pylons but by the coal industry, is patently unfair and unjust.

That is my challenge to the Minister. Those folk in the Yorkshire, Nottinghamshire and south Wales coalfields, and others, have had pylons for a long time, so either we have no compensatory scheme or we include those who have them already in a time-limited fashion. Let us have a bit of fairness in all this. I look forward to hearing how the Minister will respond to my challenge.

My Lords, I will speak to my Amendment 86 in this group on bill discount schemes and community benefits. It sets out a scheme for providing financial benefits to communities in areas connected with major infrastructure schemes. The amendment proposes a new Clause that would establish a statutory scheme to provide community benefit from major energy infrastructure projects, ensuring that those who host the infrastructure necessary for our clean energy transition are directly recognised and rewarded.

Let me begin by acknowledging and welcoming what the Government have already done in this space. The provisions now in the Bill for compensation for households living near transmission lines represent, without question, an important step forward. Households living day in, day out under new pylons or beside substations reasonably expect that there should be some benefit for them and their local communities. I welcome the fact that the Government have done that. I also take on board my noble friend’s point that this stuff is also good for all in our communities and our future.

I welcome the position that the Government have taken in the Bill but, as part of this broader group, it is important that we discuss some areas of how the Government have designed their own compensation; for example, as the noble Baroness, Lady Coffey, clearly mentioned, there is the point about generation not being included, as well as the fact that a fixed 500-metre distance was used in the DESNZ consultation. There are strange situations in which you could get compensation and not have visible sight of pylons, and there are other situations where you could have visible sight of pylons and not receive compensation. All of that needs a bit of working through; I welcome the other amendments in this group that are trying to do that. We should circle back to this on Report, but the important thing is that there is a compensation scheme. We on these Benches welcome that.

My amendment wants to go a bit further; it is additional to what the Government are doing. Although individual compensation is welcome, it has more limited scope and is of more limited benefit than pooling money together and using it to provide community benefits. I fundamentally believe that that is a better way of bringing real transition and change to the lives of the people who are impacted by this stuff.

Crucially, my amendment seeks to tie the benefit directly to the scale of the project, amounting to 5% of annual revenue. This is important because it requires not one or two pieces of infrastructure but lots of the stuff that we will have. As I said at the beginning, in energy terms, this is as big as the Industrial Revolution. Our communities will carry this weight; they should be able to be transformed by, and to get benefits from, it. I believe that pooling those benefits is a better way of helping our communities.

For example, I know that, over the summer, the Labour Party had a real concern about what happens to our coastal communities, which are some of our country’s poorest and most deprived communities. In the GB energy Act, we have community energy. It struck me that we could be doing a lot more if we used this type of money to help build local windmills and provide energy to these people living in poverty; that could be a really good scheme. It is important that this is about not the Government doing things to people but them doing things with people—that is, taking people with them on this journey and allowing them to be included in it, to benefit directly from it and to see it. I want people to go down the pub and say not, “Green energy is going to make my bill more expensive”, but, “We’ve got a local windmill or solar farm and we’re benefiting from it. We’re included in it. We participate and we get something back from it”. That is a very different conversation from the conversations that are happening now.

I recognise that my amendment is not fully workable; there are areas that obviously need reform and change. What I am trying to do is make a point. I am asking the Government to go further and go beyond what they have done already. In this country, there is a lot of conversation about and resentment of the Norwegian sovereign fund. When Norway started developing its oil and gas wells, it had the foresight to create that sovereign wealth fund; it has benefited from it. We did not do that in this country, and we have blown through most of the North Sea oil and gas. We do not have those long-term benefits.

As we start this new energy revolution, there is an opportunity here to make a system that compensates our communities and gets benefits flowing to our communities—indeed, to our whole society—from this new form of energy and transition. We can use that to bring people in and take them with us on this journey in order to make sure that this is about not one Government or one party but all of us working together for our communities, our future and the future of our children. I accept that there is a lot more to do but lots of other countries are doing this stuff, including Denmark, Germany and France, which has been mentioned. I encourage the Government to look at some of the schemes that other countries have, to look at what works and what does not, and to look at this again.

Turning briefly to the other amendments, I fully recognise the purpose of the amendment of my noble friend Lady Pinnock. She said that this is time limited, and I also note that there are over 20,000 pylons. I am interested to know whether the Government could do an assessment on what the cost of that would be; I suspect that it would be quite big and could well be prohibitive. I do not know the answer to that, but it is a question that needs asking and it is good that it is being asked.

I am not certain whether the noble Lord, Lord Lilley, is in his place, but we do not support fracking. It is not appropriate and will not solve our energy problems; it will cause pollution to our groundwater systems as well as earthquakes. It was his own party that decided that fracking was not the answer and, as far as I am aware, the Conservatives have not changed their policy on that part of the energy transition. That is certainly one amendment—unless he is working for Reform, which I doubt—that I cannot see the point in adding to the Bill.

My Lords, I will speak to my Amendment 83, which seeks to introduce a bill discount scheme for eligible households living near major energy infrastructure. This amendment seeks to ensure that those most directly impacted by the presence of new energy developments, especially large-scale infrastructure, receive a tangible, meaningful benefit—namely, a £1,000 annual discount on their electricity bill for 10 years. In contrast to Amendment 86, in the name of the noble Earl, Lord Russell, which appears to direct funding to local authorities rather than local consumers, we want to see individuals benefiting directly, not local government.

This proposal stems from a clear and pragmatic principle: if the Government are to meet their national energy and net-zero targets through new infrastructure, they must take the public with them. That includes recognising that hosting such infrastructure in their area has consequences for local communities, whether because of the visual impact or disruption from construction. It is disappointing that the current Government have chosen to step back from the community benefit scheme proposed by our previous Conservative Government. In doing so, they have shown not only a lack of ambition but a fundamental misunderstanding of the impact that these developments can have on communities.

Indeed, in a 2023 paper published by the Department for Energy Security and Net Zero, it was recommended that

“an electricity bill discount for properties located closest to transmission network infrastructure … could offer up to £10,000 per property (£1,000 per year, ~£80 per month, over 10 years)”.

The rationale was simple: communities should be compensated for their proximity to infrastructure that serves the national interest. In achieving this compensation, there is likely to be greater community consent, limiting the length of time for the planning decision to be taken and the cost associated with it. Yet despite this recommendation, the Government have failed to follow through with a credible or generous offer. Amendment 83 seeks to correct that failure.

Amendment 84, in the name of my noble friend Lord Lilley, would provide for the creation of community benefit schemes linked to onshore wind turbines. The amendment again recognises that, while additional energy infrastructure is essential, it is not always welcome, and that community consent is far more likely to be secured when there is tangible benefit for those living nearby. My noble friend’s amendment acknowledges that local communities must be partners in our energy transition, not passive recipients of top-down decisions. It would be helpful to understand the Government’s position on why onshore wind projects—and other energy infrastructure projects, for that matter—are not currently in scope of formalised benefit schemes and whether that could or should be changed.

Similarly, Amendment 94, also from my noble friend Lord Lilley, proposes that individuals should be entitled to financial benefits from shale gas companies. While shale gas remains a contentious issue, as the noble Earl, Lord Russell, mentioned, the underlying concern remains valid: communities affected by energy extraction and production should not be left behind. I also point out that fracking was pretty much invented in, and is commonly used throughout, the North Sea; it is simply the shale gas issue that we are addressing here.

I also support the sentiment of the amendments in this group in the name of my noble friend Lady Coffey. These important amendments seek to extend benefit schemes to energy generation infrastructure and network transmission infrastructure and ensure that such schemes are not merely optional but required. They mirror the spirit of the amendment in my name by embedding fairness into our energy transition and making community benefit a standard, not an exception.

What links all speakers and amendments in this group is a shared concern for the people and places that bear the burden of our national energy ambitions. From onshore wind to transmission lines, from shale gas to solar farms, these projects do not exist in a vacuum; they are local and in real communities. These amendments attempt, in different ways, to ensure that the impact is matched by investment and that no community feels exploited in the name of national progress.

Finally, I turn to Amendment 85, tabled by the noble Baroness, Lady Pinnock. It is uncosted, as the noble Earl, Lord Russell, mentioned, and concerns a retrospective scheme. The noble Baroness used the word “fairness”, and I ask: fair to whom? This provision, if implemented, would fall on bill payers and the infrastructure providers that had not anticipated these costs when they developed the infrastructure. I very much remain to be persuaded on the necessity for this amendment.

I look forward to the Minister’s response and urge her to provide clarity and assurance on the Government’s approach to community benefits. The concerns raised by this group of amendments go to the heart of fairness, consent and the long-term credibility of our energy strategy.

My Lords, I thank all noble Lords who have spoken on this group: the noble Lord, Lord Roborough, the noble Earl, Lord Russell, and the noble Baronesses, Lady Pinnock and Lady Coffey. Their amendments relate primarily to the bill discount scheme for communities near new and certain significantly upgraded transmission infrastructure, and other community benefit schemes; these are Amendments 82C to 82E, 83, 83A to 83C, 84, 84A to 84C, 85, 86 and 94.

Before I turn to the specific amendments, I say to the noble Baroness, Lady Coffey, that I will not cover business rates retention in my response. That is a bit above my pay grade, and I am afraid that she will have to wait, as we all will, for the Chancellor’s Autumn Statement to see whether she intends to make any changes to that. That is the responsibility of the Treasury. As the noble Baroness is very well aware, there is a redistribution mechanism in the business rates retention, which enables those areas that are less able to raise business rates to benefit as much as some of those that are more able to raise business rates. I am afraid that any adjustments to that are not in my remit, so I will not cover that.

I turn first to Amendments 82C, 82E and 83A to 83C, which aim to extend the scope of the financial benefit scheme for people living near new and significantly upgraded transmission network infrastructure to those living near energy generation infrastructure. While I believe that the spirit of these amendments from the noble Baroness, Lady Coffey, is certainly well intended—and the Government are committed to ensuring that communities that host clean energy infrastructure benefit from it, including clean energy generation infrastructure—I must resist these amendments for reasons that I will set out for her.

Clause 26 specifically allows for the creation of a bill discount scheme for those living near new or significantly upgraded transmission network infrastructure, with a minded-to position of offering eligible customers a bill discount of £250 per year over 10 years. This ensures that communities living near this infrastructure are recognised for the service they provide the country in hosting the infrastructure and helping to achieve our clean power goals. The clause has been specifically designed to address transmission which, due to its long, linear nature, impacts communities without necessarily providing further benefits, such as local jobs or investment, that other infrastructure probably will bring. If this clause is amended as suggested, it would require further complex and detailed amendments to ensure that it operates effectively for each type of generation infrastructure, delaying the time that it would take for the scheme to be implemented.

However, I can inform noble Lords that the Government have already presented proposals to expand the delivery of community benefits to other forms of clean energy infrastructure. On 21 May, we published a working paper on community benefits and shared ownership of low-carbon energy infrastructure, the responses to which are currently under review. Our proposals would require developers of low-carbon energy generation and energy storage infrastructure to contribute to community benefit funds to support families, businesses and local community groups living near these projects. As the noble Earl, Lord Russell, suggested, the scheme could help regenerate our coastal and rural communities—for example, via new community facilities, apprenticeships and education schemes—boosting local economies and growth as part of the plan for change.

The paper also sets out how communities could own a stake in renewable energy infrastructure through shared ownership, resulting in profits being reinvested in the community. Through these proposals, we aim to provide communities with consistency and certainty that they will benefit from hosting new generation infrastructure. I hope that the noble Baroness accepts these reasons why these amendments would not be appropriate, is reassured that we are looking into ways to ensure that communities hosting new clean energy-generation infrastructure are properly recognised for the service they are providing to the country, and will agree to withdraw Amendment 82C.

Turning now to Amendment 83, tabled by the noble Lords, Lord Roborough and Lord Offord, which seeks to set the discount amount for the bill discount scheme at £1,000 a year for 10 years for households living within 500 metres of eligible infrastructure, I really sympathise with the noble Lords’ intention to ensure that households closest to the new transmission infrastructure benefit, but I am going to have to resist the amendment, for reasons which I will set out. The Government’s minded-to position is to provide electricity bill discounts of up to £2,500 over a maximum of 10 years for households living within 500 metres of new and significantly upgraded electricity transmission network infrastructure. This proposal provides a balance between ensuring that communities are recognised for the role they play in hosting the infrastructure and limiting the additional cost to electricity bill payers in Great Britain from the scheme.

We are still conducting final analysis on the overall cost of the scheme. On 8 August, we published a consultation on our current proposals for scheme design, and that consultation is open until 26 September. Final analysis will be published in our impact assessment, alongside secondary legislation. The Government consider that the overall level of benefit ought to be set out at that stage, which will still allow for sufficient parliamentary scrutiny once secondary legislation is laid. I hope noble Lords understand our position on this matter. I look forward to working closely with them at the appropriate time on this important detail of the scheme.

I turn to Amendment 84, which seeks to extend the scope of the financial benefit scheme for people living near new and significantly upgraded transmission network infrastructure to those living near onshore wind turbines. I welcome the intent of the noble Lord’s amendment. The Government are committed to ensuring that communities which host clean energy infrastructure benefit from it. Clause 26 allows for the creation of a bill discount scheme for those living near new or significantly upgraded transmission network infrastructure, with a minded-to position of offering eligible customers a bill discount of £250 a year over 10 years. This ensures that communities living near this infrastructure are recognised for the service they provide to the country. While it may seem logical to extend this scheme to other infrastructure, such as onshore wind, the clause has been designed specifically to address transmission, which, as I said, due to its long linear nature, impacts communities without providing further benefits, such as local jobs or investment, that other infrastructure can bring. If this clause is amended to include onshore wind, it would require further complex and detailed amendments to make sure that it operates effectively, delaying the time it would take for the scheme to be implemented.

However, I am pleased to inform noble Lords that the Government have already presented proposals to expand the delivery of community benefits to other forms of energy infrastructure, including onshore wind. I spoke already about the paper that was produced on 21 May on the community benefits, and we are reviewing the responses to that. The proposals would require developers of low-carbon energy generation and energy storage infrastructure to contribute to community benefit funds—again, to support families, businesses and local community groups who live near these projects. The scheme could definitely help to regenerate those coastal communities. The paper also set out how communities can own a stake in those. Through these proposals, we aim to provide communities with consistency and certainty. I hope that the noble Lord is reassured that we are already looking into ways to ensure that communities living near new onshore wind generation are recognised for their service to the country.

Amendments 82D, 84A and 84B, tabled by the noble Baroness, Lady Coffey, would remove the Secretary of State’s discretion to establish the financial benefit schemes as detailed in Clause 26. They would also ensure that eligible infrastructure projects constructed prior to Royal Assent to this Bill are included within the scope of the scheme. I acknowledge the intention of the amendments: to ensure that the scheme is not confined to those who live near eligible infrastructure built after the Bill is enacted. I must resist this amendment, for the reasons I will set out.

The aim of Clause 26 is to ensure that households that will live close to new electricity transmission infrastructure are appropriately recognised for their service. The Government understand that many of these projects are planned over the next few years. It is our intention that the scheme will run for a set period of time, and the Government require the flexibility to review the effectiveness of the scheme and determine whether it ought to continue for a longer period or come to an end after a certain date. Amendment 82D would remove that flexibility and result in greater time and monetary costs to bring the scheme to a close. Additionally, Amendments 84A and 84B would expand the financial benefit scheme by including works which have already been completed.

Around twice as much new transmission network infrastructure will be required by 2030 as has been constructed over the past decade. We believe it is only right that this unprecedented increase in the pace of construction is appreciated and that communities are recognised for the service to the country. Extending the scheme to historical infrastructure would be moving away from this purpose. We must also consider the substantial additional cost in extending the scheme in this manner. The increased complexity in identifying many more eligible households, as well as the increase in the number of discounts being paid out, would vastly inflate the cost of the scheme, as well as delay current rollout plans, due to the increased administrative challenges. However, although it would not be appropriate to modify the scheme in the manner that these amendments propose, I am happy to inform noble Lords that the Government are currently finalising details on eligibility for infrastructure where construction has recently commenced, as we recognise that there are projects vital to clean power 2030 that will have begun before the commencement of the scheme outlined in Clause 26.

Amendment 84C seeks to prevent the costs of community benefit schemes being borne by energy bill payers. I understand and appreciate the intention of the amendment from the noble Baroness, Lady Coffey, to protect consumers from rising energy Bills. However, I will again set out the reasons why I have to resist this amendment. One of the Government’s five missions is to make Great Britain a clean energy superpower. This will boost our energy independence and reduce electricity bills. Our electricity network is key to achieving this. As we increase low-carbon and renewable energy generation, we will need to increase the scale of the transmission network at pace to keep up with demand. It will not be possible to deliver secure electricity supply vital to growth and prosperity without a transmission network that can transport it. This financial benefit scheme aims to increase community acceptability of electricity infrastructure and, in doing so, has the potential to reduce Opposition and associated planning delays.

The Government’s current intention for the scheme, as outlined in Clause 26, is for the cost to be borne by an obligation on electricity suppliers. However, although they are not mandated to do so, it is expected that suppliers will recoup these costs by passing them on to their customers. For example, the warm home discount scheme is funded via an obligation on energy suppliers that is recouped via energy bills. Using alternatives, such as funding the scheme through Exchequer funding, would not be appropriate, as the bill discount scheme forms part of a broader package which has been developed to improve acceptability of transmission infrastructure, which in turn could help reduce constraint costs, if successful in supporting the accelerated delivery of critical transmission infrastructure. Because of this, the Government believe that it is most appropriate that the scheme should be funded through bills.

Preliminary estimates for the cost of both the bill discount scheme and the community funds guidance are around 80p to £1.50 per year per average household electricity bill, although this estimate is subject to change in our future impact assessment, set to be published alongside secondary legislation. Should this community benefit package, alongside our wider package of reforms, succeed in supporting the accelerated delivery of critical transmission network infrastructure, we could avoid up to £4 billion in constraint payments in 2030, compared with the scenario where delays persist. Those costs will be met by the consumers. This is as outlined in analysis from the National Energy System Operator.

I turn to Amendment 85, tabled by the noble Baroness, Lady Pinnock. We always enjoy hearing the Yorkshire dimension on our Bills in the House. The amendment seeks to expand the financial benefits scheme from households living near new and significantly upgraded transmission network infrastructure to those living near existing transmission network infrastructure. I acknowledge the good intent behind the amendment in recognising communities that have hosted infrastructure for years. However, for reasons that I will set out, I must resist this amendment.

The purpose of Clause 26 is to recognise households that will live close to the new electricity transmission infrastructure that we need to achieve the clean power by 2030 mission. Around twice as much of the new transmission infrastructure network will be required by 2030 as has been constructed over the past decade. That significant increase in the pace requires recognition of households that will live close to that new infrastructure. Extending the scheme to all households that are next to infrastructure would be moving away from that purpose. There would also be substantial additional cost in extending the scheme to existing infrastructure. There are many thousands of miles of transmission infrastructure across Great Britain. Granting an electricity bill discount to every nearby household would vastly inflate the cost of the scheme and delay the current rollout plans due to the increased administration challenges in identifying the additional households.

Our intention with the scope and scale of the bill discount scheme is to recognise the service that communities provide. This is the right thing to do. We hope that it will be appreciated by communities and reduce opposition and delays. However, this is balanced against the anticipated extra cost to bill payers. I have already set out what those costs are likely to be. They are important to measure against the likely savings from the constraint costs. Should this community benefit package succeed, alongside our wider package of reforms, we could avoid £4 billion in constraint payments. However, this amendment would add a significant burden to bill payers, including those who are in receipt of the scheme well above that amount. Though it would not be appropriate to extend the scheme in the manner which the noble Baroness proposes, the Government are finalising the details on eligibility for infrastructure where construction has recently commenced. I appreciate the intent behind the amendment but request that the noble Baroness does not move it.

Amendment 86, tabled by the noble Earl, Lord Russell, seeks to mandate that financial benefits must be provided to communities connected with a major energy infrastructure project. The amendment achieves this by adding an additional clause to the Bill which would introduce regulations requiring owners of major infrastructure to provide 5% of annual revenue to local communities that host these projects. The Government support the intent of the amendment. As stated in our manifesto and the Clean Power 2030 Action Plan, we intend to ensure that communities which host clean energy infrastructure benefit from it. I assure noble Lords that the Government are already considering how we would employ that community benefit from energy infrastructure.

The working paper published on 21 May was open for responses until 16 July and sought views on the Government’s proposal to require developers of low-carbon energy infrastructure to contribute to community benefit funds, a similar proposal to that which has been put forward by the noble Earl, Lord Russell. The working paper covered a number of issues regarding how that level of benefit should be calculated and how the benefit should be administered. These are the areas covered by the amendment. The Government are analysing the responses and will publish those in due course.

The Government have recently updated their guidance on providing financial benefits for new onshore wind developments, setting out best practice approaches to ensure that developments have a lasting positive impact on communities. The guidance includes models from different types of community benefits and schemes and sets an expectation that developers should provide community benefits of £5,000 per megawatt per year for the operational lifetime of the project. This means that a community living near a 25-megawatt wind farm could receive up to £125,000 per year to spend on local initiatives. I hope that the noble Earl, Lord Russell, is reassured that the Government support the overall intentions and are developing similar proposals, and that he will not move his amendment.

The noble Lord, Lord Lilley, was not here to move his amendment but, as other noble Lords have commented on it, I should respond. His amendment seeks to mandate the provision of financial benefits from new and historic onshore drilling works for shale gas. In May, the Government published a working paper which outlined proposals for the introduction of a mandatory requirement for developers of low-carbon infrastructure. These responses are being analysed, but the proposals did not include financial benefits from shale gas works, as there is currently no fracking for shale gas anywhere in the UK and the Government intend to ban fracking for good. In addition, our proposal on community benefits will not apply retrospectively. We wish to minimise the risk of the introduction of a mandatory community benefits scheme creating funding issues or delays by imposing new requirements at a late stage of development. We hope that the noble Lord, Lord Lilley, is satisfied with that answer.

My Lords, I thank the Minister for her response. She has mentioned the working paper in relation to several amendments, including mine. I welcome the words that she has given and the direction of travel. However, we have the usual phrase, that “in due course” something will come forward. The Minister may not have the answer to hand, but if there is a possibility of bringing forward those proposals in time for Report in relation to this group of amendments, it would be welcomed across the House.

I accept the noble Earl’s point. I am not fond of “in due course”, as he well knows—he has heard me say that many times. I will endeavour to find out what the timescales are likely to be. It usually depends on the level of responses that have been received and the complexity of dealing with them, but I will respond in due course.

My Lords, I thank the Minister for her comprehensive answer on the variety of schemes and community benefits, bill discounts and similar. I am disappointed that she does not think that it is necessary to talk about generation. Not all projects are like Sizewell. Not all these potential new projects generate local jobs, although I am sure that the community will be very grateful for the ones that will be generated by Sizewell. Nevertheless, conscious of the time, I beg leave to withdraw the Amendment.

Amendment 82C withdrawn.

Amendments 82D to 85A not moved.

Clause 26 agreed.

Amendment 86 not moved.

Clause 27 agreed.

Clause 28: Use of forestry estate for renewable electricity