Utility Week

26 | MARCH 2023 | UTILITY WEEK Electricity Regulation slows down delivery of connections Writing exclusively for Utility Week, National Grid's chief strategy offi cer addresses the "signifi cant frustration" across the sector at the slow pace of grid connections, and he blames outdated regulation and planning restrictions. Opinion J onathan Brearley is right: the UK's energy sector needs signi cant reform. For too long, progress has been prevented by systems that are designed to slow meaningful change; prioritising short-term upgrades instead of long-term innovation and future-proo ng. The key to reaching net zero, to delivering lower prices for customers, to a strengthened security of supply and greater energy autonomy, lies within the transformation of regulatory frameworks. We whole- heartedly welcome support for this from the regulator. It's now imperative that this recognition translates into swi€ action and delivery. Historically, the regulatory regime was based on the need to maintain rather than expand, and designed to ensure there was no unnecessary expenditure by blocking anticipatory investment. But these rules have not kept up with the pace of change and so have the opposite e„ ect of what they were designed to do. They are not protecting consumers from unnecessary cost; they are slowing the vital build out of the transmission system that is critical to delivering a more a„ ordable clean energy system which will bring bills down in the years ahead. These days net- work costs are a small part of the bill, so holding back network investment that facilitates low-cost renewables is "penny-wise and pound-foolish". At National Grid, we know there is signi cant frustration about connection delays to the grid, and we want to deliver connections faster. We're bound by regulatory rules that prevent us from making investment in infrastructure in advance of receiving a connection request – even when we know it's coming. This a„ ects connections at all levels because the current system doesn't di„ erentiate. This past prevention of anticipatory investment is adding years to the energy transition, slowing down net-zero projects, and keeping Britain vulnerable to geopolitical shi€ s. We all know this must change. The quick approval of the Accelerated Strategic Transmis- sion Investment (ASTI) framework is welcome proof that Ofgem is ready to move at speed to ensure infrastructure is built at the pace required. We support this shi€ to urgency and will do all we can to play our part in deliv- ering transmission infrastructure at speed. It's not just the regulatory framework that needs updating, though. Planning policy, too, is hampering progress. The system is clunky, di• cult to navigate and very slow. It typically takes more than twice as long to achieve planning consent as it does to build the criti- cal infrastructure we need. We need to see the energy National Policy Statements designated as soon as possi- ble and, alongside an accelerated Development Consent Order process, align planning and regulatory regimes for nationally signi cant infrastructure projects. And, importantly, communities must see tangible bene ts when hosting critical national infrastructure. We welcome the government's upcoming consultation on this. It is right and fair that those who are hosting infrastructure on behalf of the whole of the UK are recognised. Whether through skills academies, jobs for local people or lower bills, we must, together, ensure that communities are front of mind. Ofgem has shown that it understands what needs to be done. That's a great step forward. Now let's ensure that urgency is translated into transformative change so that we can all play our part in delivering an a„ ordable, fair and clean future energy system. Ben Wilson, chief strategy and external a airs director, National Grid from unnecessary cost; they are slowing the vital build out of the transmission system that is critical to delivering a more a„ ordable clean energy system which will bring bills down in the years ahead. These days net- work costs are a small part of the bill, so holding back network investment that facilitates low-cost renewables is "penny-wise and pound-foolish". At National Grid, we know there is signi cant frustration about connection delays to the grid, and we very slow. It typically takes more than twice as long to achieve planning consent as it does to build the criti- cal infrastructure we need. We need to see the energy National Policy Statements designated as soon as possi- ble and, alongside an accelerated Development Consent Order process, align planning and regulatory regimes for nationally signi cant infrastructure projects. And, importantly, communities must see tangible bene ts when hosting critical national infrastructure. We welcome the government's upcoming consultation on this. It is right and fair that those who are hosting infrastructure on behalf of the whole of the UK are recognised. Whether through skills academies, jobs for local people or lower bills, we must, together, ensure that communities are front of mind. Ofgem has shown that it understands what needs to be done. That's a great step forward. Now let's ensure that urgency is translated into transformative change so that we can all play our part in delivering an a„ ordable, fair and clean future energy system. Ben Wilson, chief strategy and external a airs director, National Grid

• Cover