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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 11 August 2025
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Displaying 1524 contributions

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Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

My final question is: what impact will the establishment of the future systems operator have on whole energy systems planning? Will the FSO provide certainty about what, where and when the infrastructure needs to be built? You use the term “we” quite a lot, but it is actually private companies that are going to invest the billions of pounds. What can the establishment of the FSO do to provide certainty to enable businesses to invest?

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

It is in the committee’s interests, convener.

The Energy Bill is important, but there are obviously issues with it, and I am pleased to hear that you have been talking with different stakeholders separately or together with the Scottish Government. The committee has looked at the bill and has produced a report on it and the legislative consent memorandum.

One of our concerns, which we have also reflected here today, was about the importance of investment in infrastructure, especially the speed of decision making and deployment of that investment. In paragraph 71 of our report on the bill and the LCM, we talk about the combination of the Energy Bill and the Levelling-up and Regeneration Bill giving powers to the environment secretary to make decisions. The Secretary of State for Environment, Food and Rural Affairs is a UK minister, but environment itself is devolved. We are therefore concerned that the

“overlapping matrix of rules, obligations and permissions”

could have a “chilling” impact on investment, which none of us would want to happen. I do not know whether this is your direct responsibility or whether it is a subject for today’s discussions, but is that on your radar? After all, it is in everybody’s interests that decisions are made promptly and securely.

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

That is fine. Thank you.

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

We have had hydro for a long time, and, as you will be aware, there are significant proposals for its expansion in Scotland that are being held up. You said that talks are going on, but the proposals are being held up. Is there an understanding of the need for pace—which we heard about from your colleague—and flexibility to ensure that we have access to this fantastic resource?

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

Finally—

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

I have another follow-up question. You said that the UK Government had rejected the proposition in the House of Lords to give Ofgem a statutory responsibility to achieve net zero. Given that decarbonising energy is essential to achieving net zero—and that achieving net zero is essential to tackling climate change—why would you not? It would be quite helpful if you could give us, on the record, your rationale for currently rejecting that amendment.

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

I will not refer to that.

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

You said that electricity market arrangements are not glamorous, but I agree that they are essential. Will you set out what you see as the key risks to infrastructure investment of the current electricity market arrangements?

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

My next question leads on from that. What are the expected timescales for the completion and implementation of that transmission network systems change and for your review of the electricity market arrangements?

Net Zero, Energy and Transport Committee

Electricity Infrastructure Inquiry

Meeting date: 27 April 2023

Fiona Hyslop

You walked into that, minister.

The issue of competitive advantage is key. We have world-leading skills and experience. Scotland has fantastic renewables opportunities in terms of the pwer that can be generated from the wind, although it is not being serviced properly by the grid. However, one thing that will not be competitive is transmission charges for the generators. When we know that we face increasing competition coming at us from elsewhere, we have to take advantage of the window of opportunity, but uncompetitive transmission charges for our generators are a real disincentive to investment. What can be done about that? What has been done more recently? Do you recognise that the generation of renewable energy in Scotland is at a severe disadvantage to that elsewhere in the UK and the rest of Europe?