Fees charged for applications under the Electricity Act 1989 consultation: our response

3. Decisions on the fee levels and arrangements

3.1 This section sets out details of the decisions we have reached on fee levels to be implemented. A comparison of the existing fees, fees consulted on, and the final decision on fees to be implemented is set out in tabular form in section 6 – Schedule of Fees.

Application for consent under section 36 of the Act

Construction or construction and operation of a generating station

3.2 We will implement a fee lower than the proposal consulted on, and revise the thresholds. The thresholds for the existing 100 – 200 MW fee band will be extended to include applications up to 300 MW, and the thresholds for the existing 200 – 500 MW band will be revised such that this band applies to all applications over 300 MW. There will no longer be a higher band for applications over 500 MW. Section 6, Table 2 and Table 4 should be referred to for details of the relevant fee levels to be implemented.

Extension or extension and operation of a generating station

• Resulting in an increase in capacity
• By retrofitting of emission control equipment to a nuclear generating station
• Any other extension of a generating station

3.3 For such extension applications resulting in an increase in capacity, the Scottish Government will implement fees at the same level as for construction or construction and operation of a generating station of that capacity, as described in paragraph 3.2. We consider that an application for an extension will entail a suite of environmental information requiring comparable resources to determine as an application to construct a “new” development.

3.4 We did not receive any evidence or comments from respondents that the proposed fees for retrofitting of emission control equipment to a nuclear generating station or any other extension of a generating station should be revised. However we have considered the more general statements that fees should be reduced from the proposed level, and do not wish to create a disincentive to the retrofitting of emission control equipment should this be considered by a generator as a matter of environmental best practice. Accordingly, a fee of £35,000 will be implemented instead of the consulted on fee of £125,000 for retrofitting of emission control equipment to a nuclear generating station. The Scottish Government does not consider there is any evidence that the fee of £25,000 for any other extension of a generating station requires to be revised, and this shall be implemented as consulted on.

Operation only or change to manner of operation of a generating station

3.5 We did not receive any evidence or comments from respondents that the consulted on fees for operation only or change to manner of operation of a generating station should be revised. Fees for these applications shall be implemented as proposed in the consultation. Section 6, Table 6 should be referred to for details of the relevant fee levels to be implemented.

Application for variation under section 36C of the Act to consent granted under section 36 of the Act

3.6 The resource required to assess variation applications can be as significant as that required to assess a new proposal. The Scottish Government has determined that fee levels for applications for variation under section 36C of the Act to consent granted under section 36 of the Act should be seventy-five percent of the level of the equivalent fee for an application under section 36 of the Act. Section 6, Table 2, Table 4 and Table 6 should be referred to for details of the relevant fee levels to be implemented.

Application for overhead lines under section 37 of the Act

3.7 The Scottish Government has considered feedback from the electricity networks companies throughout the consultation process and agrees there should be a move to charging for overhead lines on a per-kilometre basis with separate rates for EIA and non-EIA development and caps for fee maxima. We also agree that the mechanism for charging fees should avoid charging small-scale, typically non-EIA connections disproportionately. Therefore, non-EIA development applications shall require a fee per kilometre around half of the fee per kilometre for an EIA application. Further exceptions will apply to small-scale connections which further reduce the fee under certain circumstances. Non-EIA applications for lines not exceeding 500m in length will require a flat fee which will be a reduction below the standard per kilometre rate. Non-EIA application fees for lines up to 15km in length will be capped to a maximum of £4,000. From 15km and beyond, non-EIA application fees will begin at £18,000 with an increment per km over the 15km threshold and will be capped at £150,000. Section 6, Table 8 and Table 9 should be referred to for details of the relevant fee levels to be implemented for EIA and non-EIA applications.