SALMOND ATTACKS "ANTI-SCOTTISH BIAS" WHICH THREATENS PETERHEAD POWER

SALMOND ATTACKS "ANTI-SCOTTISH BIAS" WHICH THREATENS PETERHEAD POWER

Scottish First Minister and Banff and Buchan MP, Alex Salmond, has attacked the discrimination in connection charges which threaten to close one third of the plant at Peterhead Power Station.

Scottish and Southern Energy (SSE) have announced this morning (Monday) that they will be forced to close unit 2 of Peterhead Power Station in 2011 unless there is a change in the pricing regime which has Peterhead paying £20 per kw for a grid connection while London power stations are subsidised by £3 per kw.

SSE are being forced to pay an additional £7 million pounds per year on their older generator which is rendering that part of the plant uneconomic and if it closes it will reduce station capacity by a third to 1200 MW and cost over 50 jobs.

Mr Salmond said:

“We should say enough is enough to this anti-Scottish bias. The transmission charging regime has already cost the country dear by slowing up renewable energy projects and now it threatens 600 MW of existing power at Peterhead and 50 vital local jobs.

“Scotland has overwhelming energy potential but our future wealth is being sabotaged by these unfair charges which discriminate against Scotland. Peterhead has to pay £29 million a year to for the right to produce power while an identical power station in London would be paid £3million to set up shop. This ridiculous position must be brought to a halt.

“The second generator at Peterhead is not as efficient as the new station but it provides valuable back up electricity and is a perfect compliment to booming wind energy since it can be brought on to provide cover when the wind energy is low. To be forced to close it is crazy economics on the part of the National Grid.

“I will be meeting the union reps and management at the Power Station later today to discuss how we can take the issue forward and protect this vital Scottish asset and I will be meeting both the National Grid and Ofgem to force this issue.

“However, the power currently lies with the London Government who regularly defend this anti-Scottish bias. Only last week the Scottish Secretary ludicrously claimed that connection charges were not a problem for Scottish power generation.

“The SNP intend to make this anti-Scottish bias a key issue to be confronted in the election campaign.”