SNP calls for 'rip off' electricity grid charges to be devolved to Holyrood

SNP MP Dave Doogan says Scottish energy companies are charged up to 15 times more to connect to the electricity grid than those in England and Wales.
Dave Doogan MP, the SNP's energy spokesman at Westminster.Dave Doogan MP, the SNP's energy spokesman at Westminster.
Dave Doogan MP, the SNP's energy spokesman at Westminster.

The SNP is demanding the electricity grid system be devolved to Holyrood, as Scottish companies are being charged up to 15 times more for connections.

Mr Doogan, the SNP’s energy spokesman at Westminster, says the “rip off” grid charges need to be completely overhauled – or handed over to the control of the Scottish Parliament.

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Currently connection charges to the electricity grid are reserved to Westminster.

The SNP are calling for connections to the electricity grid to be devolved to Holyrood.The SNP are calling for connections to the electricity grid to be devolved to Holyrood.
The SNP are calling for connections to the electricity grid to be devolved to Holyrood.

He says charges to supply electricity to the grid in Scotland can be as high as £7.36 per megawatt hour (MWh) in the far north and £4.70 per MWh in the southern transmission area.

However, it costs on average just 49p per MWh in England – and in some European countries, such as the Netherlands, Poland and Germany, they pay nothing at all.

In southern England generators are actually paid to connect to the grid.

Mr Doogan says these charges end up being passed on to customers, who are already facing “extortionate costs” during the cost of energy crisis.

This comes as energy bills are set to rise once again on 1 January.

He added the “unfair” grid charges are also holding back the development of eco-friendly power schemes.

The Angus MP said: “Scotland has been disproportionately penalised when it comes to grid charges for years, and enough.

“Westminster cannot continue to ignore us on this issue.

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“Not only are the rip-off charges being passed down to consumers in the middle of Westminster’s cost-of-living crisis, they are a disincentive for companies to invest in renewable energies in Scotland.

“The Tories must make reforming the unfair system a priority in 2024, to ensure households and businesses in Scotland get a fair deal.

“If it will not, then it must devolve energy powers to Holyrood so Scotland can take the necessary steps.”

He added: “This is another case of Scotland having to wait for a Westminster government we didn’t vote for to act – and for years now it has refused to do so, putting Scotland at a competitive disadvantage and jeopardising our net zero plans.”

It emerged in 2022 that Scottish energy generators would facing a £465 million bill for transmission charges by 2026 while those in England and Wales will get a £30 million subsidy.

UK government figures published in 2021 show that the electricity network in Scotland accounts for almost 52 per cent of the total network in the UK, with around 5,780 miles (9,300km) in Scotland and 5,400 miles (8,700km) in England and Wales.

The charging system is currently based on the distance between the location where electricity is generated and where it is used.

The fee rises when less energy is consumed close to generation, meaning that renewable projects like onshore and offshore wind farms in Scotland which are built miles from any residents have to pay more to feed energy to the network.

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The charges were designed to encourage generators to build close to consumers, but leave schemes in the most remote areas of the country facing the highest charges.

A spokesman for the UK Department for Energy Security and Net Zero said they recognie the importance of charging arrangements when it comes to renewables in Scotland.

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