CBI warns on delays to energy schemes

THE CBI today warned that plans to give Ministers powers over major infrastructure projects could lead to delays in building important energy schemes.

It identified 37 schemes, including several in the Midlands, that are already waiting for a Government decision including new power stations, wind farms and tidal projects.

The Government has signalled it intends to replace the independent Infrastructure Planning Commission, created by its predecessor, with a Whitehall-based “Major Infrastructure Unit” where Ministers will take decisions on large controversial projects.

But the CBI pointed to the backlog of power projects, representing around a fifth of the UK’s electricity generating capacity, as evidence of the challenge facing the Government as it reforms the system.

Dr Neil Bentley, the CBI ‘s director of business environment, said: “The Government must get a grip on planning. We need to build new low-carbon energy sources, including wind, biomass, gas, nuclear and clean coal plants. These are essential for securing our energy supplies and meeting emissions targets.

“We already have a log-jam of delayed planning applications for major energy projects inherited from the previous Government, and there is still uncertainty about how the new Major Infrastructure Unit will work in practice.

“In the next six months, the Government must clear the backlog of delayed planning applications. This will send a strong signal to investors that it is serious about fixing the planning system.

“The new planning regime must be streamlined, with Ministers able to make timely decisions on infrastructure projects in the national interest.  We need a planning system that encourages, not deters investment.”

In a report published last week the CBI said investment worth £150bn was at risk because of investors’ concerns about planning decisions on major infrastructure projects.

The plants in the Midlands include: Blythe Park Power at Draycott, Stoke-on-Trent and RWE Npower’s Willington C site in Derbyshire.

• The full list of pending schemes