Electricity Transmission (Compensation) Bill 2022-23: Progress of the Bill

The Electricity Transmission (Compensation) Bill, Bill 234 of 2022-23, aims to promote the use of alternative dispute resolution (ADR) procedures to resolve disputes that may arise when network operators acquire private land to put up infrastructure to transmit electricity out of court.

This briefing explains the clauses of the Bill, which was introduced in the House of Commons by Dr Liam Fox (Con) as a Private Members' Bill. It also discusses the background to the Bill and the current legislative framework.

The Bill had its first reading on 15 June 2022. It passed second reading on 25 November 2022 and completed its committee stage on 25 January 2023. In both cases, the Government supported the Bill. It is listed for remaining stages on 24 February 2023.

Great Britain’s electricity grid

The electricity grid is a network that connects electricity generators and consumers. The grid in Great Britain is formed of two networks: the transmission network, that connects large power stations to substations, and the distribution network, that connects substations to consumers.

The Government has said that to accelerate domestic supplies of low carbon and affordable electricity, the UK will need to expand the network infrastructure to support it. In the British Energy Security Strategy (April 2022), it announced measures to build new electricity network infrastructure and upgrade existing infrastructure.

In this context, the Government consulted on the rights of electricity network operators to access private land between August and September 2022. It has not yet responded to the consultation.

Access to private land and compensation of landowners

Electricity and gas network operators need access to private land to install network infrastructure, such as overhead lines, towers and underground cables. Network operators also need access to private land to maintain, repair and replace that infrastructure.

The Planning Act 2008 gives network operators powers to acquire land – without the consent of the landowner – to put up electricity transmission infrastructure, if they obtain consent from the relevant Secretary of State.

The landowner is entitled to compensation in return. If the landowner cannot agree on the amount of compensation payable with the electricity network operator, disputes may be decided by the Upper Tribunal (Lands Chamber).

Low take-up of alternative dispute resolution

There are also alternative dispute resolution (ADR) processes to resolve disputes about compulsory purchase compensation outside of court. For example, the Royal Institute of Surveyors (RICS) provides an ADR service that can be used to resolve disputes about compulsory purchase compensation.

There is no requirement to pursue ADR, although it is encouraged by the Upper Tribunal, and the decisions of ADR processes may be binding or not. The Compulsory Purchase Association (CPA) has highlighted that the uptake of ADR processes remains “low”. The organisation has called for “greater support and information” to encourage the uptake of ADR processes.

Motivation for the Bill

The Bill’s sponsor, Dr Liam Fox, has also expressed concern that landowners may have to use complex and expensive court proceedings to resolve disputes about compensation. He highlighted the costs involved in Tribunal proceedings and the imbalance in resources when smaller landowners are in dispute with a larger organisation, such as National Grid. He called for a dispute resolution system that was “clear, affordable, fair and enforceable”.

Changes to the Bill at committee stage

The text of the Bill was altered at committee stage. There was no vote on these changes, and no Members spoke in opposition of the Bill.

The updated Bill requires the Secretary of State to draw up proposals for the use of alternative dispute resolution (ADR) processes. The proposals would need to consider how to make the processes more accessible and affordable and how to ensure their decisions were enforcable. The Government said it would set up a taskforce to come up with proposals for the use of ADR in 2023.

The Bill would apply only to cases where the purchase of land is authorised by a development consent order granted under the Planning Act 2008.

The updated Bill also focuses on electricity- rather than gas-related infrastructure developments, because the problems highlighted by the Bill’s sponsor, Dr Liam Fox, relate to electricity network but not gas infrastructure. The Bill was renamed to reflect these changes.