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Power grid charges 'not unfair', says UK minister
Monday, January 18, 2010
Charges imposed on Scots power firms for putting electricity into the national grid are fair, UK energy minister Lord Hunt has insisted.
The Scottish government said the current system, linked to the size of power stations and distance from big population areas, was unfair.
But Lord Hunt told BBC Scotland that a call to cut the charges would only increase costs to the customers.
He said there was "no hard evidence" the regime was wrong.
The minister's comments came after the Scottish government approved the replacement Beauly-Denny power line, which will feed renewable energy output into the national grid.
Holyrood ministers have called for a pay-as-you-go charging scheme where all power firms paid the same - a suggestion backed by energy providers Scottish and Southern Energy and Scottish Power.
Lord Hunt told BBC Scotland's Politics Show the current system helped ensure much-needed investment in the national grid.
He went on: "If you look at the transmission costs, 23% of that is met by the generators but 73% is met by the consumer, and, if you were to change that, all you would do is increase the cost to the consumer.
Lord Hunt said: "If you're looking at the market for renewables, we're seeing a huge expansion and I've seen no hard evidence to suggest transmission charges are wrong.
"They're decided through national grid and Ofgem."
The Scottish government has said, under the current system, a power station in central Scotland pays £25m more for transmission than a similar facility in Yorkshire.
The SNP's alternative plan would see charging moved to a standard £1 per megawatt, per hour for using the system.
This story was first featured on the BBC Website.
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