No transmission subsidies needed for Scottish islands power?

UK Government consultation (13 pages, PDF) on a proposal not to activate powers to subsidise transmission charges for power generators in the Scottish islands.

The long delay and change of view since the July 2005 consultation appear to be attributable to robust evidence that generation projects on the islands are as profitable as those elsewhere in the North of Scotland.

The Scottish Government has argued (e.g. report, report) that transmission charges for Scottish generators generally should be reduced. But Ofgem (a GB body) makes regulatory decisions in these matters, and there is no UK statutory power under which a Government subsidy on such a broad basis could be offered.

Responses by Friday 26 September 2008.

For further information or advice please contact Franck Latrémolière.

Filed under DTI/BERR, Electricity.

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