Chamber
Meeting of the Parliament 18 April 2012
18 Apr 2012 · S4 · Meeting of the Parliament
Item of business
Project Transmit
No. I have taken a long intervention already.
Project transmit ended its consultation in February. The responses have been considered, modelling analysis has been done and a decision may or may not be made at the Ofgem meeting this week. Any decision will not be made known until 4 May due to the political purdah for the elections. If improved ICRP is the chosen option, as appears possible, the matter would go to the industry connection and use of system code panel and the option would be evaluated by looking at the implications and the technical aspects. The process could take months, and I am told that the panel could choose to go out for further consultation. That could take us to the end of the year. Given the complexity of the matter and the need to come up with the right solution for our islands, the process should not be rushed.
The current locational element of investment cost related pricing is a disincentive for electricity generation in the north of Scotland and the islands. I trust that the improved ICRP will address that issue as well as ensuring that there is consistency of charging methodology for the three island groups and that it is in accordance with the two European Union directives on renewable energy and the internal market in electricity, both of which enshrine the principle of non-discrimination between mainland and islands.
In speaking to the amendment in my name and thanking the SNP for bringing the power of its majority to vote on the issue, I suggest that ministers might wish to talk to their Westminster counterparts to drum up some enthusiasm for project transmit. Mike Weir, SNP member of Parliament for Angus tabled an early day motion on 1 February, but he managed to persuade only one of his SNP colleagues to support him, and it was not even Angus Brendan MacNeil of the Western Isles.
We will not support the Government motion as we oppose the flat rate, which has been ruled out by Ofgem, and we do not agree that Ofgem should be urged to deliver change quickly, without going through the full process of consultation with the industry.
I move amendment S4M-02623.3, to leave out from “opposes” to end and insert:
“notes the current approach taken by Ofgem following its extensive consultation under Project TransmiT; recognises Ofgem’s concerns that the introduction of a flat rate of charging for all generators would lead to an increase in fuel poverty for the most vulnerable; further recognises concerns that the development of wind energy in the Western Isles, Orkney and Shetland will depend on having affordable transmission charges, and urges Ofgem to continue to engage with stakeholders to find a satisfactory solution to the issue of transmission charging.”
Project transmit ended its consultation in February. The responses have been considered, modelling analysis has been done and a decision may or may not be made at the Ofgem meeting this week. Any decision will not be made known until 4 May due to the political purdah for the elections. If improved ICRP is the chosen option, as appears possible, the matter would go to the industry connection and use of system code panel and the option would be evaluated by looking at the implications and the technical aspects. The process could take months, and I am told that the panel could choose to go out for further consultation. That could take us to the end of the year. Given the complexity of the matter and the need to come up with the right solution for our islands, the process should not be rushed.
The current locational element of investment cost related pricing is a disincentive for electricity generation in the north of Scotland and the islands. I trust that the improved ICRP will address that issue as well as ensuring that there is consistency of charging methodology for the three island groups and that it is in accordance with the two European Union directives on renewable energy and the internal market in electricity, both of which enshrine the principle of non-discrimination between mainland and islands.
In speaking to the amendment in my name and thanking the SNP for bringing the power of its majority to vote on the issue, I suggest that ministers might wish to talk to their Westminster counterparts to drum up some enthusiasm for project transmit. Mike Weir, SNP member of Parliament for Angus tabled an early day motion on 1 February, but he managed to persuade only one of his SNP colleagues to support him, and it was not even Angus Brendan MacNeil of the Western Isles.
We will not support the Government motion as we oppose the flat rate, which has been ruled out by Ofgem, and we do not agree that Ofgem should be urged to deliver change quickly, without going through the full process of consultation with the industry.
I move amendment S4M-02623.3, to leave out from “opposes” to end and insert:
“notes the current approach taken by Ofgem following its extensive consultation under Project TransmiT; recognises Ofgem’s concerns that the introduction of a flat rate of charging for all generators would lead to an increase in fuel poverty for the most vulnerable; further recognises concerns that the development of wind energy in the Western Isles, Orkney and Shetland will depend on having affordable transmission charges, and urges Ofgem to continue to engage with stakeholders to find a satisfactory solution to the issue of transmission charging.”
References in this contribution
Motions, questions or amendments mentioned by their reference code.
- S4M-02623.3 Project TransmiT Motion
In the same item of business
The Presiding Officer (Tricia Marwick)
NPA
The next item of business is a debate on motion S4M-02623, in the name of Fergus Ewing, on project transmit. Members who wish to take part in the debate shou...
The Minister for Energy, Enterprise and Tourism (Fergus Ewing)
SNP
This is a very important debate. Charging for access to the electricity transmission network is an area of energy policy that is rarely spoken about, but whi...
The Presiding Officer
NPA
Mr Scott, you do not have your card in your console.I will give you more time in compensation, minister.
Tavish Scott (Shetland Islands) (LD)
LD
Does the minister recognise that one of the deep concerns is that large renewables businesses in other parts of the United Kingdom are arguing against any re...
Fergus Ewing
SNP
Different companies will be affected in different ways. Today, with the support of Tavish Scott and all the other parties, I hope to argue that when the Ofge...
Mary Scanlon (Highlands and Islands) (Con)
Con
Does the minister acknowledge that the proposals that will be announced on 4 May are just proposals? They will go out for further consultation and the consum...
Fergus Ewing
SNP
This is not the end of the process; that is Mary Scanlon’s point. Incidentally, I have deliberately not mentioned, nor have I addressed my remarks to, the Un...
Mary Scanlon
Con
I notice that the minister favours the flat-rate charge. I am shocked by that, because Ofgem’s briefing points out that such a measure would cost consumers i...
Fergus Ewing
SNP
I am not sure that I entirely understand that point. I apologise for that. The point that I was trying to make was that the Government has compromised. We th...
Ken Macintosh (Eastwood) (Lab)
Lab
I thank the Scottish Government for securing today’s debate on project transmit and the minister for his opening remarks. It is fair to say that my colleague...
Mary Scanlon (Highlands and Islands) (Con)
Con
I declare an interest in the debate, as my son works in the renewable energy business.The Conservatives welcome the debate on project transmit as part of the...
Fergus Ewing
SNP
To address the point that Mary Scanlon makes, I say to her that we do not accept that the costings that Ofgem gave to justify the refusal to accept the posta...
Mary Scanlon
Con
As a Highlands and Islands MSP, I certainly will not be uniting to support putting an extra £30 on the bills of people in the north of Scotland but nothing e...
Chic Brodie (South Scotland) (SNP)
SNP
Will the member take an intervention?
Mary Scanlon
Con
No. I have taken a long intervention already.Project transmit ended its consultation in February. The responses have been considered, modelling analysis has ...
The Deputy Presiding Officer (John Scott)
Con
We move to the open debate, with speeches of four minutes.14:28
Rob Gibson (Caithness, Sutherland and Ross) (SNP)
SNP
The problem that we have is that Scotland is caught in the trap of an organisation called Ofgem, which was created in circumstances that do not reflect the n...
John Pentland (Motherwell and Wishaw) (Lab)
Lab
I do not think that this debate will generate many headlines in tomorrow’s papers, although it should, because it is a high-voltage debate. Over £2 billion i...
Maureen Watt (Aberdeen South and North Kincardine) (SNP)
SNP
Almost two years ago to the day, the Parliament backed a motion that highlighted the threat that locational transmission charging poses to developing greater...
Liam McArthur (Orkney Islands) (LD)
LD
I am pleased to have an opportunity to speak in this brief but welcome debate and I am delighted that a delegation from Orkney Islands Council and the renewa...
Chic Brodie (South Scotland) (SNP)
SNP
I hope that, at its meeting tomorrow, the Gas and Electricity Markets Authority—GEMA—which is the board of Ofgem, will make decisions or at least provide mor...
Mary Scanlon
Con
Will the member take an intervention?
Chic Brodie
SNP
No. I do not have enough time.I have the greatest respect and admiration for the Ofgem team in Scotland—oh that it were independent—but the notion that exist...
Anne McTaggart (Glasgow) (Lab)
Lab
I welcome the debate. I think that my fellow members will agree that the existing charging regimes are neither compatible with the needs and desires of ordin...
Stuart McMillan (West Scotland) (SNP)
SNP
We have heard how important energy transmission is and will continue to be for Scotland’s economy. It is clear that energy generation is an integral part of ...
Margaret McDougall (West Scotland) (Lab)
Lab
As other members have said, the Ofgem consultation—project transmit—has been widely welcomed, as in its current form the transmission network’s use of system...
Mike MacKenzie (Highlands and Islands) (SNP)
SNP
I recently visited the European Marine Energy Centre in Orkney, which enabled me to gain a first-hand insight into the remarkable progress that it is making ...
Mary Scanlon
Con
Does the member acknowledge that the project transmit consultation ended at the end of February; that a decision will be made on 4 May; that that decision ha...
Mike MacKenzie
SNP
Sure, and I remain optimistic. I point out, however, that it is truly lamentable that it has taken this length of time to get anywhere near approaching the r...
Mary Scanlon
Con
Will the member give way?