Power Struggle: Delivering Great Britain’s Electricity Grid Infrastructure (Industry and Regulators Committee Report)

Baroness Miller of Chilthorne Domer Excerpts

Tuesday 4th November 2025 Grand Committee

[Baroness Miller of Chilthorne Domer (LD)]

My Lords, I am very grateful to have the opportunity to speak in the gap. I declare an interest as a member of Energy Local Totnes. I wanted to speak because of an electricity market regulatory change called P441, currently out for consultation, which would make local energy supply schemes considerably more viable across the UK, with many of the advantages that I believe the committee is seeking.

Currently, setting up local energy schemes involves navigating unclear regulations and exceptions, but P441 would create a standardised process, making it much easier for communities to buy and sell locally generated renewable electricity. It would also give licensed energy suppliers the confidence to support community schemes, knowing that the rules are clear and consistent. This really would be a very welcome change, which would also be much better at attracting investment because of the certainty.

Why are local energy schemes very important? I belong to one, and in the short time available to me I will give your Lordships some of the win-win wins—I counted at least eight of them. They reduce fuel poverty by selling energy affordably, at considerably lower prices than otherwise. They allow locally owned generators more control over pricing. They keep profits in the local economy, reduce reliance on fossil fuels and enhance local reliance by providing protection from fluctuating energy prices—that is particularly important when talking about fuel poverty. They balance local supply with demand, which helps the national grid reduce the need for costly network upgrades, which noble Lords have mentioned this afternoon—and, as was also mentioned this afternoon, less electricity is wasted through transmission losses, as the distance from the supplier to the customer is much shorter. So there are many wins, and I hope that the Government will encourage this change with P441. Can the Minister also say whether the Government are encouraging Ofgem to do all it can to support local energy schemes?