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.