Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what estimate her Department has made of the additional costs to consumers associated with uneven Transmission Network Use of System charges increasing the administrative strike price for renewables contracts.
The Government acknowledges the uncertainty that renewable developers face in pricing in the cost of future transmission charges (TNUoS), and that this presents particular challenges for transmission-connected projects in more expensive TNUoS zones which primarily impact wind technologies. Whilst network charges are a matter for Ofgem, the Department has considered implications for the upcoming sixth Contracts for Difference (CfD) Allocation Round and has taken into account the risk of higher TNUoS charges for certain wind technologies. The Department continually assesses implications of charging arrangements on future CfD rounds beyond Allocation Round 6.