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01/08/13 16:16

Ofgem announces plans for new transmission charges

Scottish Government responds to Ofgem announcement.

We welcome the changes in transmission charges which go some way to reducing the long term discrimination against Scottish generators.

This new approach will reduce the scale of charges facing some generators in Scotland. It is a significant success in the long campaign for fairness by the Scottish Government and the Scottish energy sector. It will also substantially reduce the charges faced by renewable generators in the North of Scotland, giving a further impetus to Scotland's renewable revolution.

However there remains significant transmission charge discrimination which is inhibiting electricity generation in central Scotland and we will continue to press for a fair solution.

We welcome that Ofgem have recognised that a new approach to transmission charges is in the best interest of consumers and will deliver a lower impact on consumer bills than the current approach. We are also pleased about the timescale for the implementation of the new transmission charges by April 2014, as there is an increasing recognition that Scottish renewable electricity is now urgently required to help maintain energy security in England, that is keeping the lights on south of the border in a position of an extraordinarily tight margins between generation capacity and peak demand by 2017.

We are still working to deliver solutions for Island communities, which have some of the best renewable energy resources in Europe and the Ofgem paper does not properly address this issue. However we now have agreement in principle with the UK Government that a more equitable position is required and we will hold all parties to that commitment. We will continue that work in order to mobilise all of Scotland’s remarkable energy potential.