First Minister Alex Salmond has attacked what he calls ‘discriminatory’ charges for Scottish electricity producers to connect to the grid.

 

Salmond made the comments after Scottish and Southern Energy announced they will be forced to close unit 2 of its Peterhead Power Station in 2011 unless charges are lowered.

 

Currently, the Peterhead facility pays £20 per kilowatt for connection while power stations in London are subsidised by £3 per kw.

 

Salmond, who is also Westminster MP for Banff and Buchan, which takes in Peterhead, said:

 

“We should say enough is enough to this anti-Scottish bias. The transmission charging regime has already cost the country dear by slowing up renewable energy projects and now it threatens 600 MW of existing power at Peterhead and 50 vital local jobs.

 

“Scotland has overwhelming energy potential but our future wealth is being sabotaged by these unfair charges which discriminate against Scotland. Peterhead has to pay £29m a year to for the right to produce power while an identical power station in London would be paid £3m to set up shop. This ridiculous position must be brought to a halt.

 

“The second generator at Peterhead is not as efficient as the new station but it provides valuable back up electricity and is a perfect compliment to booming wind energy since it can be brought on to provide cover when the wind energy is low. To be forced to close it is crazy economics on the part of the National Grid.

 

“I will be meeting the union reps and management at the power station later today to discuss how we can take the issue forward and protect this vital Scottish asset and I will be meeting both the National Grid and Ofgem to force this issue.”