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MPs could demand end to north power surcharge

The Houses of Parliament in Westminster, central London
The Houses of Parliament in Westminster, central London

A powerful group of MPs could back calls to scrap “grossly unfair” electricity surcharges that penalise families in the north and north-east.

The Press and Journal’s campaign to end a system that costs consumers in the area hundreds of pounds extra a year continued to gather momentum yesterday.

It has emerged that the influential energy and climate change select committee at Westminster is expected to deliver its verdict on the regional price differences in January or February.

A senior MP on the committee told the P&J that the evidence was stacking up against a system that levies an extra 2p-per-unit charge on homes in Grampian and the Highlands and islands, and that he would be backing changes.

Energy Secretary Ed Davey was also quizzed about the issue in the Commons yesterday, and confirmed that the government was investigating potential reforms.

Charges vary depending in which of 14 regions a consumer lives, with northern Scotland paying the highest.

However, many politicians and power giant SSE have called for a flat, national rate.

The select committee is currently holding an inquiry into overall costs of the energy network, and on Tuesday its members quizzed the boss of the regulator Ofgem and Conservative minister Matt Hancock on regional pricing.

The witnesses both agreed to look into the issue.

The MPs report on network costs will be published early in the new year and is expected to make specific recommendations on the surcharges.

UK Government ministers would be obliged to formally respond to whatever they say.

Albert Owen, Labour MP for Anglesey in north Wales, is a member of the committee and told the P&J he wanted to end a practice that also hits his constituents.

“I think the evidence is now showing clearly that the regional difference is unfair,” he said.

“What the committee will do is look at all the evidence and then make recommendations. Personally I see them as grossly unfair and our evidence is pointing in that direction.

“The irony is that these are the areas which produce a lot of the electricity, but the local consumers pay the most.”

Mr Owen raised the issue at energy questions in Westminster yesterday.

Mr Davey, a Liberal Democrat minister, responded: “As the minister of state said to the departmental select committee, of which the honourable gentleman is a member, the government believe that we should look at this issue.

“However, let us be clear: if we were to socialise the costs across the UK, other people would be paying more, so it is not quite as simple as he suggests.”