New Clause 2 - Adjustment of transmission charges for electricity
Climate Change and Sustainable Energy Bill
2:00 pm
Michael Weir (Spokesperson (Work & Pensions; Trade & Industry); Angus, Scottish National Party)
The Minister will not be surprised to learn that I have talked about this issue on many occasions on the Floor of the House. I start by warmly welcoming the new clause; he has genuinely listened to what has been said by those on the Western Isles and northern isles, and it will make a great difference to generators in those island areas. I will not burden the Committee by going over the evils of the transmission charge regime introduced by Ofgem, which on the whole will do great damage to renewables in the north of Scotland.
I want to ask the Minister one or two questions. Can he be more specific when he talks about the territorial extent of the Western Isles and the north of Scotland? For example, the Pentland firth, which sits between the Orkneys and Caithness, has huge potential for tidal and wave power. It is not clear to me whether the proposal will affect only schemes that are actually in the islands, or whether it will also benefit schemes in the Pentland firth.
The Minister also talks about extending the period for a further 10 years. Am I right in thinking that the scheme is still based on the area and that it will run for a total of 20 years? Will the extension be based on the area rather than on a particular proposal? For example, if someone comes along in 10 years and wants to set up a scheme in the area, will they still have only 10 years rather than 20?
I appreciate that the Minister has listened and has done something for the northern isles, but I draw his attention to The Herald this morning, which has printed comments made by one of his predecessors, Brian Wilson, on Ofgem’s proposals. In fact, the headline is “Ofgem could stem tidal energy flow”, and he talks about the discriminatory charges against power carried from the periphery. I am not sure that we in Scotland like to be called the periphery, but none the less that is a good point that I have raised with the Minister on many occasions: the way in which the charges are structured militates against renewables.
The Minister has now done something about the islands, and I appreciate that, but he has done nothing about the mainland. The same problems affect the mainland and offshore installations such as the Beatrice installation on the Moray firth, promoted by Talisman Energy, which will not get any additional benefits as a result of the provision. If we are serious about renewables we must attack such problems.
I have no great faith in Ofgem from my own meetings and discussions with it during the passage of the Energy Act 2004. I raised many such issues and will not go through the detail again, but I ask the Minister to consider my points.