Electricity Network Grid Charges

Opened the debate

MP Alan Brown raised concerns about the current grid charging regime in Scotland, highlighting that it makes offshore wind farms there 20% more expensive than those in England. He cited statistics showing a significant disparity in connection charges for projects off the Scottish coast versus southern England, arguing this hinders investment and job creation in Scotland and risks UK net zero targets. Brown emphasised the need for reform of Ofgem's remit to better align with renewable energy development needs. He called on the government to address issues like price volatility, interconnector incentives, and nuclear subsidies, while also supporting wave and tidal technologies. The MP urged immediate action to ensure Scotland can compete effectively in offshore wind auctions.

Government Response

Minister Anne-Marie Trevelyan acknowledged the importance of network charging arrangements for delivering a secure and affordable net zero energy system. She noted that Ofgem is responsible by law for setting these charges, which currently reflect costs accurately. The Minister highlighted ongoing consultations by Ofgem to review and potentially reform transmission charging arrangements. She committed to consulting on Ofgem’s strategy and policy statement in 2021, outlining the Government's energy priorities. Additionally, she reaffirmed support for renewable projects through contracts for difference schemes, noting significant Scottish benefit since 2015. The Minister also mentioned an ongoing offshore transmission network review aimed at improving connection delivery for offshore wind generation. She promised to reply in writing to the detailed questions raised by MP Alan Brown.