HC Deb 23 March 2004 vol 419 cc730-1W
Annabelle Ewing

To ask the Secretary of State for Trade and Industry what estimate her Department has made of the likely increase in transmission charges for Scottish generators further to the British Electricity Trading and Transmission Arrangements package of reforms.[162942]

Mr. Timms

The DTI together with Ofgem has carried out an analysis of the possible impact of BETTA as part of the Energy Bill Regulatory Impact Assessment. This includes an analysis of the increases in transmission charges on Scottish generation. The RIA can be found at: www.dti.gov.uk/energy/leg_and_reg/acts/ria.pdf

Chiefly the RIA found that the main market participants, British Energy and the two vertically integrated incumbents, Scottish Power and Scottish and Southern would be exposed to initial costs of around £7.5 million and ongoing costs of some £0.5 million per annum. It is important to note that this excludes the redistributive effects brought about by a Great Britain wide transmission-charging regime.

However transmission charges for Scottish generators have yet to be finalised. National Grid, the GB System Operator designate, launched the start of their consultation process on transmission charging under BETTA in December 2003. Subsequently and following discussion with the industry, Ofgem and DTI, National Grid published an addendum to the original consultation setting out how charges may vary with different assumptions. National Grid will shortly be publishing their next consultation document, and will issue its final proposals in time for Ofgem to consider and approve by the end of October. National Grid's consultation documents can be found on their website.

The increase in transmission charges to Scottish generators needs to be seen in the context of a package of reforms that make up BETTA. This increase will be offset by the removal of current interconnector charges and charges for access to the England and Wales market. There will also be lower connection charges for Scottish generation.

Annabelle Ewing

To ask the Secretary of State for Trade and Industry if she will publish in full the Ofgem estimates of the net impact of British Electricity Trading and Transmission Arrangements on Scottish generators. [162943]

Mr. Timms

The DTI together with Ofgem has carried out an analysis of the possible impact of BETTA as part of the Energy Bill Regulatory Impact Assessment, including an analysis of the impact of BETTA on Scottish generation. The RIA can be found at: www.dti.gov.uk/energy/leg and reg/acts/ria.pdf