Heat Networks (Scotland) Bill: Stage 3

Part of the debate – in the Scottish Parliament at on 23 February 2021.

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Photo of Paul Wheelhouse Paul Wheelhouse Scottish National Party

The role of local authorities in the regulatory system for heat networks, particularly in granting consent to the development and operation of networks, has been a major theme during the passage of the bill.

When we first consulted on a heat network consent system, we recognised that local authorities might be well placed to take on the function, given that they already act as planning authorities and because heat networks are local assets, by their nature.

However, as we developed our proposals, it became clear that heat networks would not be developed uniformly across Scotland, meaning that some—potentially many—local authorities would be required to invest in a function that went underutilised. Instead, we sought to maximise use of the capacity and expertise that are already available in the Scottish Government’s energy consents unit, which scrutinises renewables and electricity transmission projects. As such, the bill as introduced placed responsibility for administering heat network consents on the Scottish ministers.

However, following the constructive stage 1 debate, I agreed with the Energy, Economy and Fair Work Committee’s recommendation in its stage 1 report that the bill be amended to include provision such that responsibility for consents could move to local authorities. With the committee’s support, amendments were passed at stage 2 that enable local authorities that wish to be empowered with that responsibility to become consent authorities, while ensuring that the Scottish Government can carry out the function elsewhere in Scotland, where necessary.

Since stage 2, I have kept in touch with committee members on the issue—in particular, with Andy Wightman. We have reached consensus that part 2 of the bill could be refined further, so as to empower local authorities to take on the role of consent authority. Amendment 8 will amend section 18A to provide that, if a local authority makes a written request to the Scottish ministers to become the consent authority for its area, the Scottish ministers will then be required to make necessary regulations within six months.

Amendment 8A, which was lodged by Andy Wightman, rightly recognises that, having made a written request under amendment 8 to become the consent authority for its area, a local authority might change its mind and decide that it does not wish to become the consent authority. Mr Wightman’s amendment provides for that, recognising that where a local authority withdraws its written request, the Scottish ministers will no longer be required to make regulations under section 18A(1) in relation to that local authority. I am happy to support amendment 8A.

Amendment 9 will replace section 18A(3) with an identical obligation to consult the affected local authority and any other appropriate person before making regulations under section 18A(1). The drafting is adjusted in the light of amendment 43, which will alter the parliamentary procedure.

Amendment 10 is a technical amendment that sets out that where the regulations are subject to the affirmative procedure because they will textually amend the legislation, the references in the section to the making of regulations

“are to be read as references to laying ... draft ... regulations ... before the Scottish Parliament.”

Given that amendment 8 would empower local authorities to request to be designated as the consent authority for their area, amendment 43 will remove those designation regulations from the list of powers that are always subject to the affirmative procedure. Therefore, regulations designating a local authority as the consent authority for its area would be subject to the negative procedure, unless the designation regulations add to, omit or remove text from an act. In that case, amendment 46 provides for regulations to be subject to the affirmative procedure.

I move amendment 8.