Reform UK Threatens Legal Challenges to National Grid Projects

Richard Tice Photographer: Jeff J Mitchell/Getty Images Photo by Jeff J Mitchell /Photographer: Jeff J Mitchell/Ge

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(Bloomberg) — Reform UK threatened to use the nation’s courts to delay major electricity grid projects, opening a new political front against Britain’s plans to rapidly expand offshore wind power and modernize the energy system.

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After gaining ground in the local elections earlier this month, the party could seek judicial reviews to delay new transmission projects, including along a key route in eastern England, Richard Tice, energy spokesman and deputy leader, said in an interview in Birmingham. If the party was elected nationally, it could force National Grid Plc to bury cables underground instead of using overhead pylons, with shareholders footing the bill, he said. 

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The comments mark an escalation in the party’s opposition to new pylons, which have become increasingly controversial in rural communities along routes planned for new power lines.

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The UK is expanding offshore wind farms and other renewable energy projects as part of its Clean Power 2030 strategy, which aims to generate almost all electricity from low-carbon sources by the end of the decade. But building enough new grids to carry that electricity around the country is becoming a major challenge, slowing projects and adding costs that are increasingly being passed on to consumers through energy bills.

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Reform won control of councils including in Essex, Suffolk — areas along National Grid’s proposed Norwich-to-Tilbury transmission route. The project is designed to carry electricity from offshore wind farms in eastern England to London and southeast England.

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Investors and analysts are closely watching for potential delays to these projects, which are central to the company’s long-term investment plans. National Grid plans to spend as much as £70 billion ($94 billion) by 2031 at home and in the US. 

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Asked last week about the risk of political opposition following Reform’s local election gains, National Grid Chief Executive Officer Zoe Yujnovich said many of the company’s biggest transmission projects fall under the UK’s national planning system, which limits the influence of local councils. She added that the company continues to work with local communities.

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While local authorities have limited power to block nationally significant infrastructure, legal challenges can still delay projects by questioning whether the approval process was properly followed.

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