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Energy secretary challenged over electricity pricing

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UK Energy Secretary Ed Davey has been challenged to intervene to end “gross disparities” which mean families in the north and north-east pay more for electricity.

The Cabinet minister has received letters on the issue from both Aberdeen Central MSP Kevin Stewart and the chief executive of power giant SSE, Alistair Phillips-Davies.

It follows a series of articles in the Press and Journal in the last week highlighting regional price differences which mean consumers in the area pay 2p-per-unit more for power than in other parts of the country.

Mr Stewart said he had been contacted by constituents who were “furious” about the surcharge.

In his letter, the SNP MSP wrote: “It is scandalous that customers in an energy rich nation like Scotland are forced to pay higher energy prices than people elsewhere in the UK due to geographic location, and it is particularly galling when you take into account our higher energy needs.

“This situation makes it clear that we have a National Grid in name only with customers in the north of Scotland facing bills several hundred pounds higher for the same usage levels.

“As the secretary of state for energy and climate change I am urging you to intervene and end these gross disparities or, allow the regulation of energy markets to be devolved to the Scottish Parliament so that we can do so here.”

In a separate letter, Mr Phillips-Davies calls on the Liberal Democrat minister to end regional pricing.

He wrote: “Our position on this has been informed by public polling on this issue and the results are clear.

“Consistently two-thirds of people support an end to regional price differentials and we have recently seen in the north of Scotland and the Islands that this is an issue of public concern.

“SSE has been making the case for these transportation costs to be ‘flattened out’ to one standard charge for every customer across Great Britain.

“The network companies would receive the same income for their necessary maintenance and investment work, but the costs would be spread across all regions, resulting in an end to this issue.

“This would make things far simpler for customers by reducing tariff complexity, as well as addressing these public concerns.”

Writing exclusively in the Press and Journal today, Mr Davey says the UK Government is working hard to protect consumers in remote areas.