EDINBURGH, Scotland, Aug. 18 (UPI) — The Scottish government said Tuesday it was setting up a panel to look into the impact of the closure of the Longannet coal power plant, the country’s last.
“ScottishPower’s decision to close Longannet in March 2016 is deeply regrettable and has far-reaching consequences for Scotland,” Scottish Energy Minister Fergus Ewing said in a statement. “This is a worrying time for Longannet workers, and the Scottish government and its agencies will do everything possible to support the 230 directly employed staff who will be affected by this announcement.”
The utility said the combination of high carbon taxes and high transmission charges meant it had to shut down the coal plant by next year. With 46 years in service, Longannet is the last coal-powered plant in service in the region.
The Scottish government last year expressed frustration with British policy decisions that translated to millions of dollars in extra charges per year for its power sector. Edinburgh said its power systems account for 12 percent of the region’s electricity capacity, but it pays 35 percent of the charges.
Ewing said the government would establish a task force to balance against the impact of the company’s decision. In Longannet’s case, he added that British policies translated to an extra $62.5 million in charges per year.
“Today’s decision is ultimately an unfortunate and direct result of the U.K.’s discriminatory transmission charging system that penalizes Scottish electricity generators,” he said.
Scottish Power said it would delay future investment decisions, which Ewing and the company said could upset the balance on a Scottish grid that’s adding more low-carbon reserves.
ScottishPower Chief Executive Officer Neil Clitheroe, for his part, said the coal plant could stay in service under the right economic conditions.
“This is a sad day for ScottishPower, and for our highly skilled and committed team at Longannet,” he added.
