Overview

This bill mandates that the Secretary of State establish a scheme requiring wind farm operators to hold sufficient financial resources to cover potential liabilities stemming from public nuisance claims related to noise, light pollution, inadequate decommissioning, or other specified nuisances. The scheme will involve public consultation and parliamentary oversight.

Description

The Wind Farm (Compulsory Financial Provision for Public Nuisance) Scheme will compel wind farm operators ("eligible entities") to maintain financial resources to address potential public nuisance lawsuits. The scheme will cover:

• Noise pollution
• Light pollution
• Inadequate decommissioning
• Other categories of nuisance (to be determined via consultation)

Before establishing the scheme, the Secretary of State must conduct a public consultation considering factors such as:

• Eligible entities
• Methods for calculating and updating required financial resources
• Factors influencing resource sufficiency (number, proximity, size, and noise profile of turbines)
• Methods for meeting obligations
• Timeframe for compliance
• Potential impacts on electricity costs, public expenditure, and renewable energy targets

The consultation report will be presented to Parliament. The scheme's introduction is scheduled for within 12 months of the report being laid before Parliament. A review of the scheme will be conducted two years post-introduction, with a report submitted to Parliament.

Parliamentary approval is required for the initial regulations and any subsequent amendments that add entities, obligations, or increase financial resource requirements. Conversely, parliamentary approval is also required for regulations that exempt entities, abolish obligations, or reduce financial resource requirements.

Government Spending

The bill doesn't directly specify government spending. However, the consultation will assess the potential impact of the scheme on public expenditure allocated to supporting wind turbine electricity generation.

Groups Affected

The bill will primarily affect:

• Wind farm operators: They will be required to secure and maintain financial resources to cover potential liabilities. This might increase their operational costs and insurance premiums.
• Residents near wind farms: The scheme aims to provide them with greater assurance that wind farm operators will be able to compensate for any proven public nuisance caused by wind farms.
• Electricity consumers: The scheme could potentially affect electricity prices, depending on how the costs are absorbed.
• The UK Government: The scheme could influence public spending on renewable energy and the overall cost of its renewable energy initiatives.

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