Costly keys to the highway give Scots the faraway blues, as genco seek overhaul of TNUoS fees


Transmission operator Scottish and Southern Electricity Networks says customer support is overwhelming for Ofgem to re-balance fees for access to UK-wide grids.

As currently framed, network access tariffs imperil commercial viability of RE developments in remote locations, according to the firm.

Under ‘volatile’ pricing structures, Scots wind farms may have to pay up to double the costs of connecting to the UK grid as an equivalent generator in Wales, the gridco claimed in a paper published in February.

SSEN says further recent research among 100 of its generator clients and related counterparties now underpins its call for Ofgem to think again.

A full 84% of respondents consulted complained that fluctuating Transmission Network Use of System (TNUoS) fees act as an obstacle to stable business planning.

As well as their relative cost, the fees are hard to forecast from year to year, SSEN’s analysts claim.

“It is clear from our …engagement to date that there is overwhelming support for TNUoS reform. Urgent action is required to address current barriers in the context of the climate emergency”, observed Andrew Urqhuart, SSEN’s head of transmission.

One possible solution to network tariffing may come from the telecommunications industry.

LRIC (Long Range Incremental Costing) was a methodology pioneered by consultancy Ovum in the late 1990s. Designed to adjudicate on cost apportionment between mobile telecoms companies and fixed link network operators, LRIC came to be adopted by regulators and markets authorities worldwide.


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