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ScottishPower Welcomes Government Plans for Reforming Grid Charging Regime

Posted on: Thursday, 18 September 2008, 12:00 CDT

ScottishPower has welcomed the Scottish government's plans for a fairer, simpler and more transparent transmission charging regime for power companies.

ScottishPower has said that the current regime works against the sustainable development of the vast renewable and clean energy potential in Scotland. The new model proposes a uniform charge for each unit of energy that enters the system, regardless of location or capacity of the generating facility and the amount paid is directly related to the amount produced, the utility said.

Jim Mather, the Scottish energy minister, presented the case for reform to the UK's energy sector regulator Ofgem and power grid operator National Grid to stop the current system of charging generators in Scotland millions of pound more than generators in the south of England to transmit electricity.

The new model proposes that the method of charging generators should be changed from paying for the maximum entry capacity (MW) to paying for the use of the system (MWh). Currently, the charge would be around GBP1 per MWh.

John Campbell, director of energy wholesale at ScottishPower, said: "The current system of high and volatile transmission costs unfairly penalizes northern generators and hinders the development of renewable energy resources. In addition, the cost also makes it very difficult to justify badly needed investment in thermal generation, particularly in areas remote from the UK's population centers."

Source: Datamonitor

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