Source · Select Committees · Scottish Affairs Committee
Recommendation 4
4
Paragraph: 20
Locational transmission charges weigh more heavily on developers in Scotland when projects in other areas...
Conclusion
Locational transmission charges weigh more heavily on developers in Scotland when projects in other areas of the UK, like Wales, are paid to connect to the grid. The financial burden of transmission charges and grid investment needs to be justly shared across the UK and not fall heavily, and unjustly, on the developers of renewable energy projects in Scotland. The current review by Ofgem about locational transmission charges is not happening at a fast-enough pace.
Paragraph Reference:
20
Government Response
Acknowledged
HM Government
Acknowledged
The Government shares the Committee’s view on the importance of transmission charging arrangements to the delivery of renewable energy projects and achievement of net zero targets. By law, transmission charging is a matter for Ofgem as the independent regulator. On 1st October 2021, Ofgem published a call for evidence on possible transmission charging reforms. It provides all interested parties with an opportunity to submit views and evidence on the extent to which reforms are needed; priority areas for reform; the correct vehicle for change; and timescales to which any reform programme should work. The call for evidence runs until 12th November 2021, and Ofgem has said it will announce next steps later this quarter. The Government welcomes the open and timely approach being taken by Ofgem with the call for evidence and will continue to engage closely as Ofgem progresses its consideration.