Source · Select Committees · Scottish Affairs Committee
Recommendation 5
5
Paragraph: 21
We recommend that the UK Government specifies that, as part of its internal review, Ofgem...
Recommendation
We recommend that the UK Government specifies that, as part of its internal review, Ofgem must consider the financial burden of transmission charges in Scotland. Ofgem should consider the long-term impacts on net zero targets and aim for a way to ensure renewable energy projects have the chance to flourish over the next 30 years, rather than pushing for a short-term, lowest cost view. Ofgem should publish the result of their internal transmission charges review as soon as practicable, and certainly within six months.
Paragraph Reference:
21
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.