Delays to grid charging reforms will cost Scottish electricity generators £90m, it has been revealed.

It will also risk postponing the benefits to consumers, according to First Minister Alex Salmond.

Last week, Mr Salmond and Energy Minister Fergus Ewing chaired a meeting of industry and academic experts following an announcement by Ofgem that it was to further defer a decision on a proposed charging structure that would benefit Scottish electricity generators.

The Project TransmiT proposals aim to ensure the charging regime promotes greener energy as well as keeping transmission costs under control.

It is understood Ofgem is now to undertake a further round of consultation with various industry and other stakeholders before coming to a decision on whether to implement a new charging regime from April 2016. The proposed date is two years later than the date initially suggested.


Speaking after the meeting, Minister Salmond said: "Today's discussion was very helpful in assessing the impact of this unwarranted delay in crucial decision-making.

"There was broad consensus that the review of transmission charging over the last three and a half years has undoubtedly demonstrated the case for change – and the urgent need for clarity on the way forward.

"Wide agreement exists across industry and political circles in Scotland on the changes needed to facilitate the move to a low carbon energy mix. Following today's meeting, I will look to meet with the Chair and new Chief Executive of Ofgem in the coming weeks to further press Scotland's case."

Minister Ewing added: "The impact of two years delay in implementation of a new system of charges equates to around £90 million of extra transmission charges for Scottish generation. The delay could also put back the long-term benefits to consumers that Ofgem highlighted as part of its proposals in August 2013.

"Scottish generators account for around 12% of capacity connected to Britain's high-voltage electricity network but pay around 35% of the charges. Ofgem's proposals have the potential to lessen this discrimination by reducing Scotland's share to 25%. This would still be double our share of generation capacity installed across Great Britain, but would be a welcome reduction nonetheless."

(JP/MH)