Electricity Generation

(asked on 24th March 2021) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, if his Department will make an assessment of the potential risk to UK net zero targets of not reforming the Transmission Network Use of System (TNUoS) charging system, which places a premium on wind farms based upon postcode rather than project viability.


Answered by
Anne-Marie Trevelyan Portrait
Anne-Marie Trevelyan
Minister of State (Foreign, Commonwealth and Development Office)
This question was answered on 19th April 2021

The transmission network charging regime is a matter for Ofgem as the independent regulator. Transmission charges are set to reflect the costs which generators and demand customers in different locations impose on the transmission network. For Scotland, it means that generators generally pay higher charges than elsewhere, as they are further from demand centres, whilst Scottish consumers benefit from lower transmission charges than elsewhere. This ‘user pays’ approach helps to ensure efficient network use and keeps costs down for all end-consumers.

Ofgem is undertaking a package of reforms which, amongst other things, are intended to enable decarbonisation at lowest cost to consumers. An important element of this reform package is the Access and Forward-Looking Charges Review, which includes consideration of some aspects of transmission charging arrangements. Ofgem plans to consult on proposals in 2021, and the Department is in close touch with Ofgem to understand the implications for helping to achieve net zero targets, as well as minimising consumer costs.

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