Power charges 'discriminatory'

SCOTTISH electricity generating companies face much higher transmission charges than their counterparts in England because the National Grid operates a regime called "locational charging", aimed at encouraging companies to set up plants close to built-up areas where the need for power is greatest.

As a result, companies in parts of Scotland are being charged more than 21 for each kilowatt of electricity which is connected to the National Grid, while electricity companies in some parts of England are receiving subsidies of between 1 and 6 per kilowatt.

The Scottish Government argues that the current system is discriminatory.

A spokesman for the National Grid said: "There is lot of generation in Scotland and rather less demand and there has to be a lot of investment in transmission networks to take the power from Scotland to where it is consumed – in England and Wales."