Orkney Islands Council Leader – ‘Common Sense Prevails’ in Scottish Affairs Committee Response

Orkney Islands Council’s Political Leader James Stockan has today (17 September) welcomed the findings of a UK Government inquiry into the current grid charging system.

The Scottish Affairs Committee has recommended that transmission charges and grid investment should be more equally shared across the UK - rather than the current system which sees renewable projects in England and Wales get paid to connect to the grid, whereas Scottish projects have to pay out substantial sums themselves, with projects in the North of Scotland paying by far, the highest charges despite having the best wind, wave and tidal natural resources in the UK.

The report has highlighted that overhaul of the system is required if net zero targets in the UK are to be met.

Ofgem’s recent consultation on improving the way in which charges for electricity transmission are calculated has been roundly criticized by Orkney Islands Council  - and other key stakeholders.

Councillor Stockan said: “A substantial amount of resources and effort have gone into recent ‘green energy’ development work in Orkney, work that has been undertaken in the knowledge that the use of system charging methodology was under review by Ofgem and in good faith and trust that Ofgem, having espoused a great deal of promising rhetoric regarding a “green, fair future” and “rewiring Britain for a net-zero future” would come with proposals which would enable fragile communities  like ours to benefit from their renewable resources.

“We have waited for over a year for these proposals to be published and are astounded that the proposals achieve the unwelcome dual effect of increasing expected costs, and also whilst increasing uncertainty at the same time.  The proposals which have been presented betray our trust in Ofgem and actively discriminate against renewable energy projects in the North of Scotland even more than the current charging methodology does.

“We - along with others – have made our frustrations clear to Ofgem and await their response.”

“With this report by the Scottish Affairs Committee at last common sense prevails – and we very much hope the findings will be heeded by Ofgem.

Scottish Affairs Committee chair Pete Wishart said: “In our committee’s latest report, we have identified the need to ensure Scotland is not left behind in the renewables race and nowhere is this more apparent than within the current transmission charging regime.

“We therefore strongly recommend that Ofgem must now address the issues around transmission charges in Scotland and help us meet net zero.

“We found this is not justly shared across the UK as it currently stands. Scottish developers must be incentivised, not disadvantaged.

“The bold net zero commitments by both the Scottish and UK governments are welcome, but delivery is essential.

“To meet net zero, the Scottish and UK Government must work together to champion the opportunities Scotland offers, and to work with Ofgem and industry to modernise the grid for our low carbon aspirations and tackle climate change.”

The committee has advised that the UK Government  must specify to Ofgem that they have to take into consideration the financial burden of transmission charges in Scotland and the long-term impacts on net zero targets, ensuring renewable energy projects can flourish over the next 30 years, rather than pushing for a short-term, lowest cost view.