Energy Market Reforms

Lord Hunt of Kings Heath Excerpts

Tuesday 4th November 2025 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

There are two aspects to this. There is the National Grid, and in Scotland there is ScottishPower. We also have the district network operators, so we have different levels of pylons. It is not quite as straightforward as having a simple pot. The important thing is that we build the renewable energy that we need. We also need to look at battery storage. Not all electricity generation needs to be connected up through power lines. The last figures I saw on burying power lines showed it to be about 11 times more expensive. It depends where they are—through a national park, for example—and what the current situation is. It is important that we have the renewable energy connection, and we want to bring down prices, but we must build the connections in the right place. Connections are not just built in a straight line. Electricity companies spend a long time ensuring that the route chosen is the best one: they talk to people. This is part of creating the renewable energy future that we need.

[Lord Hunt of Kings Heath (Lab)]

My Lords, does my noble friend the Minister agree that, alongside decarbonisation, one way to reduce prices for many people would be to encourage them to use flexible electricity? In other words, through battery storage and other modern techniques, consumers can be encouraged to use electricity at a time of abundance and thereby reduce their bills. The Government set up a task force this summer. Does my noble friend the Minister believe that it can spearhead reform in this area?

[Baroness Hayman of Ullock (Lab)]

I just mentioned battery storage, so that is a very appropriate question from my noble friend. As I said, over the summer we announced our decision not to introduce zonal pricing and, instead, to implement this ambitious package of reforms to improve the effectiveness of our current national pricing model. We will publish more detail later this year—including on the role of flexible assets such as storage and consumer-led flexibility in addressing constraints, because flexibility will be a critical part of lowering costs and achieving our clean power ambitions. We recently published the Clean Flexibility Roadmap, which contains a comprehensive, actionable plan for unlocking the kind of greater flexibility to which my noble friend refers.