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Energy Bill

The Government decided to extend to offshore the principles that govern the regulation of onshore electricity transmission. We are doing that because we think that it will bring a number of benefits, including consistency with the arrangements onshore and providing assistance to offshore developers by recovering the costs of building offshore grid connections through the National Grid’s charging methodology, in that way spreading costs that they would pay to connect to the grid over a number of years, as happens onshore. Next, it means that the responsibility for development of the offshore transmission network would not fall to generators alone; instead, the risks and costs of developing offshore grid connections would be shared by the system operator and the offshore transmission owners. Also, it would ensure a co-ordinated approach to the development of the offshore network, providing an additional environmental benefit by reducing the unnecessary duplication of transmission assets. The question has been raised—not in Committee today but generally—of how does the Crown Estate announcement fit with the development of the new offshore transmission regime? The Government have been discussing with Crown Estate the interaction between Crown Estate’s proposal for leasing round 3 and the new offshore transmission regime. We think that the two processes fit pretty well together. It will enable the development of the offshore grid to connect with the new development zones that Crown Estate proposes. I do not know whether that is sufficient for the noble Lord’s purpose. The noble Lord asked whether the Bill will help to ensure that the offshore wind power will actually happen or whether it was just a desire. We think that the new offshore transmission regime, combined with the banding-up of support for offshore wind, will help to enable the offshore renewables sector to grow over the coming years. It is on that basis that we have adopted the new regime that we hope to see offshore.