The First Minister, as well as Scottish Power, Scottish and Southern Energy and the Scottish Renewables Forum, met today with Ofgem to press the "unanswerable case" that the Electricity Transmission Charging Regime as it stands works against the development of renewable and clean energy in Scotland.
First Minister Alex Salmond said:
"We had a very useful and constructive meeting with OFGEM. The Scottish Government, Scottish Power, SSE and Scottish Renewables presented a united and unanswerable case.
"No other country in Europe enjoys Scotland's vast array of potentially cheap, renewable and low-carbon energy sources. We have an abundance of renewable resources - onshore and offshore wind, wave, tidal, biomass. We have the resources and skills to develop clean coal, carbon capture and storage. The UK and Europe need Scotland to help meet renewable and carbon reduction targets.
"However, at the moment, the transmission charging regime actively works against the development of these resources - with a power station in central Scotland paying £25 million for transmission more than a similar facility in Yorkshire and more than in London. The charging system encourages generation near large centres of population. It does not aim to promote sustainable development. This cannot be right in today's world.
"OFGEM gave a positive response to many of our detailed points. Changes are urgently required on the method used by National Grid for charging for generation capacity and on the current volatility of flat charges. We will continue to work closely with OFGEM, and in addition press National Grid to reconsider their whole approach to transmission charging. This Scotland Group led by The Government will now take our case directly to the National Grid company in a meeting on April 17."