National Grid: Regulation prevents us speeding up connections

Writing exclusively for Utility Week, National Grid’s chief strategy officer addresses the “significant frustration” across the sector at the slow pace of grid connections. Ben Wilson argues that the key to speeding up the process is to update the regulatory regime and remove planning blockers.

Jonathan Brearley is right: the UK’s energy sector needs significant 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-proofing.

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 wholeheartedly welcome support for this from the regulator. It’s now imperative that this recognition translates to swift 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 effect 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 affordable clean energy system which will bring bills down in the years ahead.  These days network 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 that there is significant 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 affects connections at all levels as the current system doesn’t differentiate.

This past prevention of anticipatory investment is adding years to the energy transition, slowing down net zero projects, and keeping Britain vulnerable to geopolitical shifts. We all know this must change. The quick approval of the Accelerated Strategic Transmission 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 shift to urgency and will do all we can to play our part in delivering 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, difficult to navigate and very slow. It typically takes more than twice as long to achieve planning consent as it does to build the critical infrastructure we need.  We need to see the energy National Policy Statements designated as soon as possible and, alongside an accelerated DCO process, align planning and regulatory regimes for nationally significant infrastructure projects.

And, importantly, communities must see tangible benefits 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 showed last week 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 affordable, fair and clean future energy system.