RenewableUK Welcomes Ofgem’s Transmission Charges Announcement

RenewableUK has welcomed the publication of Ofgem’s “minded to” position today on future transmission charges. The proposal recognises the important point that renewable generation shares the grid with other generation, and for the first time Ofgem is proposing a method of charging for transmission which mirrors current practice of the transmission companies. The result will be a more equitable and proportionate transmission system.

Although stopping short of more material changes that RenewableUK was seeking, thry welcome Ofgem’s proposal. It will benefit consumers in the long-term by reducing electricity bills – £8.30pa lower in the 2020s compared to retaining current charging It will also make the deployment of various forms of renewable generation easier by recognising that the grid network is shared by different generators.

RenewableUK welcomes the proposal for an implementation date of 1st April 2014. It has taken some three years to get to this point, and further delay would have led to new frustration. RenewableUK is disappointed that Ofgem does not propose to recognise the wider benefits of sub-sea cables and their role of helping to connect up the country. Although marginally helpful for the deployment of renewable energy in the Scottish islands, RenewableUK continue to look forward to the deployment of an islands-specific renewables support scheme.

RenewableUK’s Deputy Chief Executive, Maf Smith, said: “We welcome Ofgem’s positive proposals. This is a good step forwards which will see earlier connection of renewables, and a reduction in prices for consumers.

 “However, Ofgem’s decision to not replicate this new approach in charging for sub-sea cables will hold back connection of Scottish islands and a new generation of wind, wave and tidal generation there. Ofgem is clearly leaving the UK and Scottish Governments to do the heavy lifting in removing this barrier for island generation.”

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Press release, August 2, 2013; Image: ukti