A major report released by Scottish Renewables has issued a direct challenge to the energy regulator, Ofgem, to immediately reform the UK's electricity network charging regime.

The industry body warns that without urgent intervention, Scotland's ability to deliver the clean power and economic growth required for Britain's new energy mix will be severely compromised.

At the heart of the issue are Transmission Network Use of System (TNUoS) charges—the fees paid by generators to build, operate, and maintain the UK's high-voltage grid. Scottish Renewables argues these charges are currently "volatile, unpredictable, and outdated," having been designed more than 30 years ago for a fossil-fuel-led energy system.

The report highlights a significant financial disadvantage for renewable energy projects located in Scotland. Under the current regime, these generators are often penalised by tens of millions of pounds annually compared to their counterparts in the south of England.

Since 2015, existing Scottish generators have been hit by £2.9 billion in unforeseen and unavoidable TNUoS charge increases. The industry body warns that these rising costs are already having tangible effects:

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• Deterring vital investment in new wind and solar capacity.

• Preventing Scottish projects from successfully bidding into the UK Government's Contracts for Difference (CfD) auctions.

• Putting existing operational projects at risk of becoming "economically unviable" before the end of their lifespan.

• Eliminating local jobs and supply chain opportunities that would have been created by successful developments.

While the UK Government has targeted 2029 for enduring TNUoS reform, Scottish Renewables argues this timeline is far too late. The body is requesting that Ofgem implement two specific interim measures ahead of Allocation Round 8 (AR8) to provide the certainty investors require:

• For Existing Projects: An option to fix charges at a specific level over the operational life of the asset. This would likely use central forecasts that were available at the time of the original investment decision.

• For New Projects: The ability for developers to lock in their TNUoS charge at the level current when they submit their CfD bid, removing the risk associated with unreliable long-term forecasts.

Claire Mack, Chief Executive of Scottish Renewables, said: "It has been clear for some time that the current transmission charging regime is not fit for purpose and we have now seen projects, jobs and supply chain opportunities lost as a direct result. The UK Government and Ofgem must now get on with the enduring reforms that will ensure network charges work effectively to support decarbonisation at best value to consumers."

The report, authored by Simon Gill of The Energy Landscape, notes that the scale of these charges is set to worsen. Forecasts indicate that charges for generators in the north of Scotland could more than double between now and 2030.

Simon Gill commented: "Projects that are already operational, or close to investment decisions, cannot respond to these changes. Rather, they reduce project value, limit the ability to recycle capital, and increase financing risk at a time when substantial investment is required."

Scottish Renewables concludes that a comprehensive review of how the transmission network is funded is essential to ensure that the UK's transition to net-zero remains affordable and strategically planned.