Minister for Energy (): I wish to inform the
House that the Department for Energy Security and Net Zero
intends to undertake a contingent liability under the statutory
spending authority under section 50 of the United Kingdom
Internal Market Act 2020. It is a bespoke, time‑limited, capped
policy indemnity offered by UK Government to SSEN Transmission
(SSENT) to satisfy Scottish Environmental Protection Agency's
(SEPA) permit requirements for the SSENT's Orkney Transmission
Link project, under the Environmental Authorisations (Scotland)
Regulations 2018. Upgrading and expanding the grid is critical to
the government's clean power mission and growth objectives. The
project was granted initial regulatory approval by Ofgem in 2019,
and final regulatory approval in 2023, and was awarded a marine
license by Scottish Government in 2020, which was extended in
2022 and 2024. This indemnity will enable the project to proceed,
and avoid potential delays, by satisfying a regulatory
requirement, subject to SSENT obtaining the necessary permits,
ensuring long-overdue progress of connecting Orkney to the GB
transmission grid. This critical grid infrastructure will unlock
significant clean power capacity that Orkney possesses -
including community renewable projects - and bolster security of
supply for the islands, helping support a stronger local economy
and delivering a more efficient grid for GB consumers which is
fit-for-the-future.
It is normal practice when a Government Department proposes to
undertake a contingent liability that is novel, contentious or
repercussive to present Parliament with a Minute, in line with
Managing Public Money. In line with this guidance, the liability
will not be entered into until 14 parliamentary sitting days have
elapsed following the laying of the Minute.
The indemnity covers the extremely unlikely scenario where SEPA
determines that an intervention is required, by virtue of SSENT's
construction activity resulting in a statistically significant
increase in irradiated particle washed up onshore from disturbing
irradiated particles on the seabed, and that the required
intervention is beyond the scope of the Nuclear Restoration
Services' (NRS') existing particle monitoring and recovery
programme. The indemnity is time‑limited for 20 years. Due to the
extremely remote probability of this risk materialising, it is
highly unlikely that this full cost would crystalise. HM Treasury
has approved this proposal.
A Departmental Minute has today been laid before Parliament
setting out full details of this contingent liability. In
accordance with Managing Public Money, the liability will not be
entered into until 14 parliamentary sitting days have elapsed
following the laying of the Minute. Subject to satisfaction of
the relevant conditions precedent, the Orkney indemnity will
become live as soon as practicable after 14 parliamentary sitting
days have elapsed following the laying of the minute.
