Claims UK Government "reneging" on cheaper Highlands energy
Two Labour Highlands MSPs have been told there is nothing stopping SSE from lowering energy charges now.
It is the latest in the row over SSE charging customers in the Highlands and Islands two pence more per unit of electricity due to the higher distribution costs.
The surcharge equates to residents in the region paying an average of £300 a year more than customers further south.
Mr David Stewart and his colleague, Rhoda Grant, have been pursuing answers on the extra cost for some months.
The statement they have just received from Energy Minister Ed Davey they say is in contrast to assertions by SSE and Ofgem who say a change in legislation is required to rid the north of the surcharge.
SSE say they have called for the distribution costs to be “flattened out” to one standard charge for every customer across Britain.
However they state that only Government, the Regulator or the Competitions and Markets Authority can make this happen.
Mr Davey states in correspopndence: “Whilst I appreciate the argument for ‘flattening costs’, I am concerned that such a move would remove or weaken the ‘cost-reflective’ principle enshrined in our current approach to charging.
“The effect of this would weaken the local accountability of the network operator in enduring expenditure is fully justified, in turn weakening downward pressures on network costs overall.”
Mr Davey advises that his officials have held a discussion with SSE about its proposal and are to meet again shortly to discuss again: “It is worth noting that we do not believe there is anything preventing SSE from deciding to flatten network costs across its own customer base if it so wished.”
Mr Stewart told the ‘Strathy’: “At the end of the day, not withstanding Ed Davey’s comments, it is within the power of this coalition government to end this anomaly.
"By the stroke of a pen they could be putting new legislation through parliament.
“The best way to reduce fuel poverty in the Highlands and Islands is to remove this two pence surcharge and I call on government to do this now.”
Mr Stewart’s colleague, Rhoda Grant, said: “This ConDem government promised to deal with this – they are now reneging on this promise.
" It is not good enough for their constituents in the Highlands and Islands.”
