Renewable Energy

(asked on 9th February 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, what assessment his Department has made of the potential effect of the reforms in Ofgem’s Targeted Charging Review on renewable energy development (a) in Scotland and (b) across the UK.


Answered by
Anne-Marie Trevelyan Portrait
Anne-Marie Trevelyan
Minister of State (Foreign, Commonwealth and Development Office)
This question was answered on 17th February 2021

Network charging is a matter for Ofgem as the independent regulator. Ofgem is leading two major charging reforms: the Targeted Charging Review (TCR), where final decisions were announced in December 2019; and the Access and Forward Looking Charges Significant Code Review (Access SCR), which is ongoing. Collectively, this programme of work seeks to ensure that regulatory and market arrangements reflect and enable the energy system transition, as we move towards net zero emissions, and that consumers benefit from the changes.

Ofgem’s TCR reforms seek to ensure all parties connected to the electricity network make a fair contribution to its fixed costs, and it has published an analysis of the expected impacts at: https://www.ofgem.gov.uk/electricity/transmission-networks/charging/targeted-charging-review-significant-code-review . This analysis indicates that the reforms could affect the investment decisions of some renewable energy projects across Scotland and GB more widely, but also suggests that overall the combined impact of the TCR changes will reduce carbon emissions compared with no reforms.

Ofgem’s Access SCR is seeking to ensure the electricity network is used efficiently and flexibly, allowing consumers to benefit from new technologies and services. Ofgem is currently developing proposals, and intends to consult on these later this year. It will publish an impact assessment alongside that consultation.

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