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3 March 2017

Figures Reveal Cost of Charges for Peterhead Power Station Compared to Rest of UK

Figures have revealed a North East power station pays some of the highest charges for generators in the UK.

While Peterhead Power Station could pay generation charges of £19.60 per kilowatt a gas fired power station in Kent would pay only £1.75 per kilowatt.
Banffshire and Buchan Coast MSP Stewart Stevenson asked the Scottish Minster for Business, Innovation and Energy what assessment had been made of the higher transmission entry capacity costs faced by Peterhead power station.

It comes after the recent capacity market auction, which it is believed to have prevented the facility from securing a deal to supply capacity to the UK grid, because of its location.

Mr Wheelhouse revealed estimates which showed that Peterhead would pay generation transmission charges of £19.60 per kilowatt during the period of 2017-18.

By comparison, a gas fired power station in Kent was shown to pay £1.75 per kilowatt.

The Minister said:

“Clearly this places Peterhead at a disadvantage in any auction model.

“We strongly urge the National Grid and UK Ministers to adopt a charging methodology that allows Peterhead and potential future thermal generation in Scotland to compete.”

The Capacity Market Auction (CPA) awards funding to electricity generators in return for guaranteeing supplies to the national grid at times of potential shortages.

Banffshire and Buchan Coast MSP Stewart Stevenson said:

“Peterhead has been grossly disadvantaged by the CPA because of its location.

“The facility has already lost out on funding from the Tories and now we can see the huge differences in what facilities across the UK will pay in terms of transmission charges.

“I am astonished Peterhead power station will faces estimated costs of £19.60 but a similar site in Kent would pay just £1.75 all because of our location.

“It is simply being made impossible for Scotland and the North East to develop capacity when we face these disparities."
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