Ofgem says customers in Scotland will benefit

SNP leader Alex Salmond claims energy transmission prices put forward by the National Grid Company and Ofgem would penalise Scottish generators.

He claims the charges would subsidise firms in England disadvantaging their Scottish counterparts.

The watchdog, Ofgem, said it had not yet decided on the charges.

Mr Salmond, MP for Banff and Buchan, claimed the levy could also threaten renewable energy projects in Scotland.

Unfair transmission prices are one of the biggest threats to the Scottish energy industry Alex Salmond SNP

Mr Salmond pointed to plans by oil company Talisman for an offshore wind farm in its Beatrice field in the Moray Firth.

He said Talisman would have to pay nearly �6m more than a company located in central London to put the energy created onto the grid.

"Unfair transmission prices are one of the biggest threats to the Scottish energy industry," he stated.

'Lack of coherence'

"Remote areas are among the most efficient locations for renewable energy generation, yet the government and Ofgem are penalising them for this, undermining their potential.

"This is yet another example of a complete lack of coherence from the Labour government - on the one hand they set targets for the renewable energy generation, while on the other they make it almost impossible to achieve by charging projects unfairly high prices simply to put their energy onto the grid."

Charges in England and Wales are based upon how far energy has to travel from its generation to the customer and the same system is due to be introduced in Scotland.

The National Grid Company is currently putting together its proposals on pricing and will give them to Ofgem soon.

'Benefits to customers'

An Ofgem spokeswoman said a decision on the charges was expected to be made in February.

She said: "Future transmission charges are one element of a much wider package of measures, due to be implemented in April.

"This package will have the effect of creating a wider and more competitive market for Scottish generation, which is key to realising Scotland's renewable potential, and will also bring benefits to Scottish energy customers."