Calls To Discuss Longannet's Future

Scotland's Energy Minister, Fergus Ewing, has called for talks with the UK Government regarding the future of Longannet power station.

The request comes after it was revealed that the future of the power station is in jeopardy due to the UK's transmission charging regime.

Longannet, located in Fife, is Scotland's largest power plant but it has been reported that the facility may be forced to close as a result of the £40m its operator – ScottishPower – pays to connect to the National Grid each year.

Scottish generators account for around 12% of the capacity connected to Britain's electricity network, but pay around 35% of the charges.

Minister Ewing has now called for talks with UK Energy Secretary Ed Davey to discuss the situation.

In a statement Minister Ewing said: "The UK Government has completely failed to manage the electricity system properly and unfortunately the consequences are now being felt. With a looming security of supply crisis, maintaining a charging regime that penalises Scotland's energy generators is of great concern and simply makes no sense.


"Scotland's largest power station, Longannet, has the potential to generate affordable, reliable power for years to come and yet it is being priced out of the market. We need a urgent rethink on policy for baseload capacity and reform of the UK transmission charging system, and I will be writing to UK Energy Secretary Ed Davey to seek an urgent meeting to discuss the future of Longannet and wider energy security.

"As well as electricity supply and grid stability I am also concerned about the jobs involved. Longannet employs around 260 full time staff as well as benefitting the wider economy via suppliers to the plant.

"For the sake of both the workforce and the security of our energy system we need urgent reform of the much discredited transmission charging regime and better policy to maintain the reliable capacity that Longannet provides."

Neil Clitheroe, CEO Energy Retail and Generation at ScottishPower, said: "We do not want to close Longannet, and I would stress that there are no plans to do so. We have invested over £200 million in recent years to improve both environmental and operational performance at Longannet, and we want to secure a longer term future for the station.

"However, to avoid closure within the coming years, changes to the plant's financial situation must be achieved. The current market conditions, predominantly the transmission charging rules, mean that we simply can't justify entering Longannet into a process which is four years away and will then only offer one year of certainty."

The utility provider added that it would "fully explore all of the options to keep Longannet operational for as long as possible", and is due to hold detailed discussions with the National Grid, Scottish Government and Department of Energy & Climate Change (DECC).

(JP/IT)