Scotland to pay less for electricity - Foulkes

12 Dec 2001

Minister of State for Scotland George Foulkes today welcomed plans that will help lower electricity bills in Scottish homes.

Speaking today after the publication of the plans by regulator OFGEM, Mr Foulkes said:

"Scottish consumers would benefit from reduced electricity bills under OFGEM’s plans to create a single electricity market for Great Britain.

"The proposals, published today, are great news for Scottish consumers who have in the past had to pay up to 9% more than those in England and Wales. A single market can offer the customer more choice of who provides their power, increasing competition and decreasing bills.

"This UK wide market will also strengthen Scottish power companies and help them compete in a more liberalised EU market."

NOTES TO EDITORS

1. Ofgem issued a further consultation paper today on the creation of a British Electricity Trading and Transmission Arrangements (BETTA). This will extend the New Electricity Trading Arrangements (NETA) market that operates in England and Wales to Scotland, creating a GB wide market. NETA introduced in the Utilities Act (2000) was implemented in March this year. The main components of the GB electricity market proposed by Ofgem are:

  • The introduction of a common set of trading, balancing and settlement arrangements across GB based on NETA;
  • the introduction of a common set of transmission pricing arrangements and contractual provisions for transmission access across GB, based on those applying in England & Wales at the time of implementation; and
  • the introduction of independent balancing and settlement of the Scottish market, through the creation of a single GB System Operator that is separate from generation and/or supply interests.

2. The consultation document is found on Ofgem's web site at www.ofgem.gov.uk