ScottishPower challenges grid charges
14 Sep 05
High Court action claims unfair charges for use of National Grid
ScottishPower went to the High Court in London yesterday to challenge the charging regime for use of the National Grid electricity transmission system.
The generating company claims that the current regime, introduced in April, requires generators located in Scotland to pay vastly more for use of the system than their English counterparts.
Christopher Vajda QC for the company, said that under the system Scottish generators contributed 47% of total generator revenue, but accounted for only 13% of capacity. This meant that on average they paid six times the average charge paid by English and Welsh generators.
He argued that it was imperative that the regime properly and accurately reflected costs because that was the essence of the rationale for imposing the higher charges on the Scottish companies.
ScottishPower's challenge is being resisted by GEMA, the authority which imposed the regime, and by the National Grid and the German company E.ON, owner of Powergen - which this week confirmed its interest in bidding for control of ScottishPower.
The hearing is expected to last four days.