Welsh Liberal Democrat MP David Chadwick has urged the UK Government and Ofgem to strengthen scrutiny of large energy developers operating in Wales, warning that communities risk seeing wealth extracted from their areas while large companies prioritise profit for wealthy investment firms and individuals.

Speaking during a parliamentary debate on energy infrastructure, the Member for Brecon, Radnor and Cwm Tawe raised concerns put to him by local residents that the rules set by Ofgem stipulating that the same company cannot own both energy generation and distribution may be being undermined by flaws in the existing legislation, stating: “In Wales, companies such as Bute Energy and GreenGen Cymru, which are both owned by Windward Energy Limited, are prompting local concerns that rules separating electricity generation and distribution could be undermined by corporate structuring tricks.”

Commenting after the debate, Mr Chadwick said many residents across Mid and West Wales feel that developers are imposing large infrastructure projects, including long runs of pylons, without sufficient regard for local landscapes, communities, or fair economic return.

“These are well-financed corporations backed by investment funds and wealthy individuals,” he said. “They tell us that undergrounding is not viable, but what they really mean is that it’s not as profitable. Once again, outside companies are extracting wealth from Wales, leaving the environmental and social cost to our communities.”

The MP called for Ofgem to review whether existing “unbundling” and ring-fencing rules are robust enough to guarantee independence between generation and distribution businesses, and to ensure that regulatory frameworks cannot be weakened through complex ownership arrangements.

Responding to the intervention, Michael Shanks MP, the Labour Minister of State for Energy, said he remained confident in the independence of Ofgem’s rules but would be happy to meet Mr Chadwick to discuss any specific concerns.

Mr Chadwick welcomed that commitment and said he looked forward to raising the issue directly with the Minister.