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by Munro Research

Electricity Transmission (Compensation) Act 2023


Official Summary

A Bill to require proposals to be drawn up for the use of alternative dispute resolution processes to determine the compensation payable to landowners in certain cases where land is acquired for the purposes of electricity transmission.

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Overview

This bill mandates the UK government to develop proposals for using alternative dispute resolution (ADR) methods to settle compensation claims from landowners whose land is acquired for electricity transmission projects. The aim is to provide a faster, cheaper, and more accessible process than traditional court proceedings.

Description

The Electricity Transmission (Compensation) Bill requires the Secretary of State to create proposals for using ADR in cases where land is compulsorily purchased for electricity transmission. This applies to situations where land acquisition is authorized under Section 114 of the Planning Act 2008. The definition of "electricity transmission" follows the Electricity Act 1989.

The proposals must address how ADR will ensure:

  • Availability of ADR for determining compensation amounts.
  • Accessibility of ADR for landowners, without excessive cost or difficulty.
  • Independence and impartiality in the operation of ADR and its decisions.
  • Enforceability of ADR determinations.

The Secretary of State must consult relevant parties before submitting a report containing these proposals to Parliament. The bill extends to England, Wales, and Scotland and will come into force two months after it becomes law.

Government Spending

The bill itself does not directly specify any government spending figures. The cost will depend on the resources allocated to developing and implementing the proposed ADR processes, including potential costs associated with supporting landowners in navigating these new procedures.

Groups Affected

  • Landowners: This bill directly impacts landowners whose land is acquired for electricity transmission projects. They will potentially benefit from a potentially quicker and less expensive dispute resolution method.
  • Electricity Transmission Companies: These companies will be affected by the new dispute resolution processes, potentially leading to altered procedures for land acquisition.
  • Government Departments (e.g., Department for Energy Security and Net Zero): Responsible for overseeing the implementation of the new ADR processes, requiring resource allocation and potential policy adjustments.
  • ADR Providers: Organizations offering ADR services may see increased demand for their services.

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