Committee publication · Correspondence · 16 July 2026
Correspondence from Wales&West Utilities on the energy transition, dated 7 July
From: Welsh Affairs Committee
Summary
Wales and West Utilities urges the Welsh Affairs Committee to investigate unequal distribution of energy transition funding and policy support between Wales and England. The company argues Wales faces structural disadvantage in accessing decarbonisation infrastructure despite hosting major industrial clusters and clean energy projects, with funding decisions consistently favouring English schemes and conventional cost-benefit methodologies disadvantaging lower-density Welsh regions.
Key findings
- HyLine Cymru hydrogen pipeline (Pembroke to Port Talbot) received no Ofgem funding despite being identified in the South Wales Industrial Cluster Plan as essential infrastructure, whilst £96m was approved for the equivalent HyNet East Coast project in England.
- Wales's South Wales Industrial Cluster emits 16 million tonnes of CO₂ annually and employs over 100,000 people, yet infrastructure to decarbonise these industries is progressing slower than in other UK regions.
- Standard funding methodologies disproportionately disadvantage Welsh projects due to lower industrial density and smaller urban populations, making them appear less favourable on conventional cost-benefit metrics used by Ofgem.
- Government's published Clean Energy Jobs Plan for Wales lacks transparency on net job creation figures, job quality definitions, and proportion of roles that will be long-term versus short-term construction posts.
- Integrated planning of electricity and hydrogen infrastructure could save the UK £38bn by 2050, support 64,000 skilled jobs, and unlock £11bn private investment by 2030—benefits at risk of accruing elsewhere if Wales excluded from early delivery.
Tone
CriticalTopics
Key actors
Ruth Jones MP, Wales and West Utilities, Matthew Hindle, Secretary of State for Wales, First Minister, Ofgem, UK Government
Notable line
“Wales faces the same net-zero imperative as other nations but lacks equivalent access to the tools and early funding needed to realise it.”
Key Quotes
“Wales faces the same net-zero imperative as other nations but lacks equivalent access to the tools and early funding needed to realise it.”
“Prioritisation to date has clearly favoured English schemes, while Welsh projects remain at feasibility”
“… without this information, the Committee — and the public — cannot judge whether Welsh jobs and communities will truly benefit from the opportunities of the transition.”
“Decisions taken now will determine where investment flows, where jobs are created and which regions are positioned to lead in the future Welsh economy.”
Source · parliament.uk record ↗