Ofgem not giving consumers the best value


Ian Marchant,
CEO, Scottish
and Southern
Scottish and Southern’s chief executive Ian Marchant denounced the current transmission charging system as "not fit for purpose".

The current electricity charging system had been set up in the 1990s when there was no call for low carbon energy, with the transmission network designed to have the "absolute least cost" approach.

Now, he said there needed to be a much more active approach to managing the grid and charging for electricity, which would allow more renewable energy generators to connect with the existing system.

Mr Marchant said: "At the moment, the view is that any constraint is bad. That is not the right way to do it – we have an awful lot of the grid that is not as fully used as it should be. I think we need to have a fundamental look at that because if we do we would have a lot more renewables connected."

The SSE chief executive also suggested that the way in which electricity is sold in this country – as controlled by regulator Ofgem – does not give consumers the best value.

"I charge every one of our customers the wrong price every minute of the day, no matter what time of day," said Mr Marchant. "I charge the same price whether you use your electricity in the middle of the night or at seven in the evening – when it’s 15 times the price."