Clause 1 - Independent mechanism to determine claims for compensation

Part of Electricity and Gas Transmission (Compensation) Bill – in a Public Bill Committee at 9:30 am on 25 January 2023.

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Photo of Graham Stuart Graham Stuart Minister of State (Minister for Climate) 9:30, 25 January 2023

It is a pleasure to serve under your chairmanship, Mr Hosie.

I thank my right hon. Friend the Member for North Somerset, and I am sure that Members across the Committee congratulate him. He probably snapped into it pretty easily; not only did he have the great success of the Down Syndrome Act but, as my former boss at the Department for International Trade for some time, seeking to command me was something that came naturally to him. Perhaps I have an overly built-in response, which is of course to try to do whatever he wants.

We have made tremendous progress. I am pleased that the Bill gained the support of Members of the House, passing Second Reading on 25 November last year. On Second Reading, my colleague the Minister for Industry and Investment Security, my hon. Friend Ms Ghani, agreed that the Government would work with my right hon. Friend on the Bill.

The electricity network is fundamental to accelerate our ambitions for net zero and energy security. Since taking on my role and seeing the vast amount of technology we need to deploy, I return again and again to the same point: if we do not get the grid right, whatever we do is affected, whether that is space energy; small modular nuclear reactors; hydrogen and carbon capture, utilisation and storage; or floating offshore wind. Whatever it is, without the grid we will not have a transformation, which we have to do at a most remarkable pace.

The president of the National Grid has said there will be six-and-a-half times more investment in the grid over the next seven years than in the previous 30. That is a massive deployment, supply chain and financing challenge, but it is also a political challenge, because of unprecedented imposition of necessary infrastructure on communities up and down the land. Ensuring that we have a system that is fit for purpose and does not roll communities over—but rolls with communities and their grain—is fundamental. That is why I am so grateful for the Bill. I do not believe it will slow down that tremendously required acceleration of deployment, but it will help to build a system that is better able to listen to the communities we represent and ensure that they feel part of the solution, not just subject to it.

As I said, the network needs to be transformed at an unprecedented scale and pace, and it needs to accommodate an expected doubling in overall electricity demand by 2050, as we electrify sectors including transport, heat and industry. In order to achieve that, we committed in the British energy security strategy to accelerate the timescale for delivering new onshore transmission network infrastructure.

We recognise that in cases where land or land rights have been acquired and a settlement is not agreed between landowners and the transmission owner, challenging that via the upper tribunal can be expensive—a point made strongly by my right hon. Friend the Member for North Somerset. The Bill presents an opportunity to address the issue by ensuring access to alternative dispute resolution processes, which can play such a crucial role in offering a quicker and more affordable route to the resolution of disputes.

We believe that the Bill can support the transformation needed so that we can have clean, secure and resilient energy for the Great British people. Landowners should have access to a clear, fair, affordable and enforceable system for dispute resolution, and I am pleased to say that we have worked closely with my right hon. Friend the Member for North Somerset since Second Reading and support his amendments.

I will now touch on those amendments, which I encourage the Committee to accept. Amendment 1 will remove clause 1, which will be replaced by new clause 1. The new clause focuses the proposals on electricity-related cases rather than gas-related cases. We support that change, as the examples raised by my right hon. Friend have related only to electricity network infrastructure and we are not aware of issues for gas infrastructure. It seems too early to include gas infrastructure definitively. However, the Secretary of State has the option to expand the scope if needed. Hon. Members have raised this issue in previous stages.

The new clause moves from establishing a new mechanism to encouraging the use of alternative dispute resolution processes instead of immediately resorting to the upper tribunal. It means that we can therefore consider existing practices, whether they can be strengthened to meet the aims of the Bill, and whether new processes and mechanisms may be required. The new clause retains the key factors that the proposals must consider, which my right hon. Friend set out: ensuring that decisions are enforceable, and that the process is affordable and accessible. He also mentioned independence, which is another important aspect.

Amendment 2 simply replaces “applies” with “extends” in clause 2(1), which deals with territorial extent. It is a minor technical amendment to reflect more appropriate terminology. Amendment 3 changes commencement to two months after Royal Assent to bring the Bill in line with standard commencement procedure for primary legislation. Amendment 4 removes gas from the Bill’s short title in clause 2, in line with the focus on electricity transmission infrastructure that I have already discussed. Finally, amendment 5 edits the Bill’s long title to reflect its contents in new clause 1. New clause 1 should be added to the Bill, and clause 2, as amended, should stand part of the Bill.

My right hon. Friend raised some questions. He rightly said that retrospective law is typically abhorrent, but asked whether current disputes could be resolved through whatever proposals come forward. We would certainly want current ongoing disputes to be covered once proposals are implemented, but, of course, we do not yet know what those proposals are. Our intention is to establish an alternative dispute resolution taskforce—very grandly named—which will be responsible for putting forward proposals, and we will have to see what ideas are generated by that taskforce. If a dispute is still unresolved by the time that any proposals are implemented, such cases should be able to use any alternative dispute resolution options that result from the Bill, if they are appropriate. If the dispute, of course, is resolved before the proposals are implemented, any options resulting from the Bill will not be required.