Date lodged: 26 March 2019
To ask the Scottish Government whether it has made any assessment of the impact that Ofgem’s targeted charging review will have on investment and innovation in onsite flexible generation in order to support a future flexible energy system.
Answered by: Paul Wheelhouse 18 April 2019
The Scottish Government response to Ofgem’s Targeted Charging Review consultation pointed out that certain groups of consumers, particularly those whose consumption is lower, would, under Ofgem’s proposals, pay more than they do today in order to prevent them from paying an increasingly higher share of the costs in the long term.
This group could contain users with onsite flexible generation, which, under the current charging framework, can be used to minimise the level of electricity drawn from the grid, and, in turn, the contribution made to wider network costs. The Scottish Government has suggested to Ofgem that more should be done to segment these groups, and to better understand the short term impact on low and vulnerable users particularly.
While we support Ofgem’s aim to ensure a fair distribution of costs, we also wish to avoid reforms that would discourage or decrease investment in renewable energy and the development of a more flexible energy system.