UK Government officials are poised to hold talks with energy giant SSE amid claims that north and north-east families are being “diddled” on electricity prices.
Energy Secretary Ed Davey has revealed that his staff are due to meet representatives of the power firm to discuss major reform of the way network costs are funded.
The Press and Journal has been running a campaign for a fair deal on electricity bills after revealing that consumers in the area pay hundreds of pounds extra a year because of a surcharge.
After we highlighted the issue in October, SSE chief executive Alistair Phillips-Davies wrote to Mr Davey calling for a move to a flat, national pricing system.
Kevin Stewart, SNP MSP for Aberdeen Central, also wrote to the Liberal Democrat Cabinet minister demanding an end to the “gross disparities”.
Mr Davey has now said in response to Mr Stewart that his department “acknowledge the concerns” and would discuss them with SSE.
He said: “Distribution network costs vary by region and reflect the cost of running the network in that area.
“However, we acknowledge the concerns relating to particularly high distribution costs in the north of Scotland.
“It is for this reason that the government introduced the Hydro Benefit Replacement Scheme, which helps protect consumers in this distribution by spreading an element of the higher network costs in the north of Scotland across consumers over the whole of Great Britain.
“In 2013/14 this amounted to £54million.”
Mr Davey added: “The detail of network charging is a matter for Ofgem, but clearly the government has an interest in the overall outcome given the impact on consumer bills.
“SSE has written to me about the article referred to and my officials will be meeting them to discuss their proposal.”
A spokesman for SSE declined to comment last night.
Mr Stewart claimed Mr Davey’s response did not go far enough.
“It’s all fair and well for Mr Davey to talk about things like the Hydro Benefit Replacement Scheme but the reality is that does not compensate people in the north and north-east
for the amount that they are having to pay above and beyond elsewhere in the UK,” he said.
“During the course of the referendum, Mr Davey and his colleagues were quick to shout about the ‘Union dividend’ but here what we have is a ‘Union levy’.
“The people of the north and north-east pay an enormous price for electricity and are being totally diddled.”