Ofgem proposes boost for new generators in Scotland
OFGEM PROPOSES BOOST FOR NEW GENERATORS IN SCOTLAND Ø New proposals to make it easier and cheaper for new generators to connect to the grid Ø Proposals could help renewables in the north of Scotland Ø Generators should receive compensation for interruptions to network access Proposals to make it easier for new electricity generators to connect to the national electricity grid in Scotland were announced today (Wednesday) by energy regulator Ofgem. The proposal looks at changes to the way that new generators are charged for connection to the Scottish Hydro Electric Transmission Limited (SHETL) system in the north of Scotland. Under the existing connection policy a new generator is charged for the extra upgrading of the system needed to bring more electricity on to the system, on top of the initial cost of connection. These are known as 'deep' charges. Under Ofgem's proposals new generators will only be charged for the cost of connecting to the transmission network. These are known as 'shallow' charges. Any costs associated with system upgrade as a result of the new connection would be passed to all new generators on the SHETL network through transmission use of system charges. Ofgem's Managing Director of Scotland, Charles Coulthard said: "The current connection policy of SHETL makes it difficult and expensive for new generators to connect to the transmission system, particularly in more remote areas. This can be particularly difficult for renewable generators, such as wind who locate themselves in the north of Scotland. "We think that connection charges to all transmission networks, whether in gas and electricity, should be shallow - so new generators will be only charged for the cost of the connection. This should make it easier for new entrants in the market to compete." Ofgem's proposals include: · the replacement of "deep" connection with "shallow" charges · paying system charges which should mean that generators get firm rights of access to the transmission network. They should be compensated for any interruption of these rights by the transmission system operator. Comments are invited by 22 March. ends Notes to editors: 1. Copies of the document 'Connection and charging policy for new generation by Scottish Hydro Electric Transmission Limited: A final proposal document' are available on the Ofgem website at http://www.ofgem.gov.uk/public/pub2002.htm or from the distribution centre by telephone: 0116 277 2617 or by email: distribution@ofgem.gov.uk from 11 March. 2. Ofgem is the Office of the Gas and Electricity Markets, regulating the gas and electricity industries in Great Britain. Ofgem's aim is to bring choice and value to all gas and electricity customers by promoting competition and regulating monopolies. Ofgem is governed by an authority and its powers are provided for under the Gas Act 1986, the Electricity Act 1989 and the Utilities Act 2000. For further press information contact: Richard Hunt on 020 790 7158 Danny Wilkinson on 020 7901 7022 Rob Jones on 020 7901 7484 Out of hours contact: 0781 8457 969 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/03/06/20020306BIT00570/wkr0001.doc http://www.waymaker.net/bitonline/2002/03/06/20020306BIT00570/wkr0002.pdf