We were very pleased to see a great proactive speech by Baroness Therese Coffey recently in the House of Lords, where she spoke about the planning predetermination problem for the funding of NSIP and large-scale energy projects.
READ the speech in the Hansard report HERE (from 9.15pm)
Baroness Coffey asserted that there is a flawed process for funding large energy projects in the UK, arguing that decisions made by the energy regulator, Ofgem, predetermine the outcome of the planning process, rendering local consultation and planning law almost meaningless.
She expressed immense frustration with how major energy projects, such as new transmission links, are currently being funded and approved. Her central argument was that the regulator, Ofgem, grants substantial early construction funding (ECF) to projects before they have even begun, let alone completed, the formal planning application process.
This, she contended, predetermines the outcome of planning applications, making the entire planning system appear “a complete and utter joke” to local communities. The granting of large sums of money by a powerful regulator effectively signals that the project is a “done deal,” regardless of community concerns, planning law technicalities, or Parliamentary scrutiny.
She cited specific examples like the Norwich to Tilbury and Sea Link projects to illustrate her point. In the Sea Link case, she highlighted that Ofgem plans to grant 48% of the funding through ECF to National Grid (NGET)—significantly more than its usual 20% policy—even though the planning process was delayed due to an error – see Ofgem’s consultation on ECF for Sea Link HERE.
This kind of action, she argued, leads to public scepticism that the planning system “means anything at all.” Baroness Coffey proposed a new clause/amendment to the relevant legislation that would restrain Ofgem from granting such funding until at least the planning document has been officially submitted, and ideally, until consent has been granted. Her motivation was to “restore some credibility” to the planning system and ensure that the country “respects law and respects that there is not a predetermination.” She acknowledged the need for accelerated progress toward energy goals by 2030 but argued that this cannot come at the cost of circumventing due process.