THE chief executive of Ofgem has denied the UK's electricity transmission charging regime is hampering the development of renewables in Scotland.
Jim Mather, the Scottish Government's energy minister, yesterday called for Ofgem and National Grid to change the "unfair" regime.
The current system is based on location, meaning a power station in Scotland pays about £25 million more per year t
o transmit electricity than one in Yorkshire.
Mr Mather thinks this is putting the development of renewables at risk, because locations suitable for green energy production are often in peripheral regions away from demand centres.
However, Alistair Buchanan, chief executive of Ofgem, said he does not think transmission charging has put off the development of renewables.
"We are yet to get a project where people have said that is the reason," he said. "I don't think the charging system per se is the problem."
Instead, he thinks the planning system and the queue to connect to the national grid have a far greater impact on the renewable industry.
Mr Mather told an energy seminar in Edinburgh yesterday that a letter had been sent to Ofgem and National Grid asking for a flat rate for transmission charging.
He said: "It is only common sense to have a fair, simple charging regime to promote renewable energy, ending the current discrimination and giving developers certainty for investment decisions."
Jason Ormiston, the chief executive of Scottish Renewables, said: "It's a test of their support for renewables."
He said he knows of renewable projects that have not got off the drawing board because the charging system is too high.
Mr Buchanan said Ofgem would look at the proposals from the Scottish Government on their merit.
A spokeswoman for National Grid said: "While we believe the biggest barrier to new generation, renewable or otherwise, is the current planning regime and not transmission charges, we welcome a debate and we'll be looking with interest at the proposals."
The full article contains 329 words and appears in The Scotsman newspaper.
