Speaking at topical question in the House of Commons on Thursday morning, both the energy secretary and energy minister stated this is an issue the Department of Energy and Climate Change (Decc) is set to examine.
Energy secretary Ed Davey said setting a single national transmission and distribution price is something the government “should look at”.
He then warned MPs it “is not quite that simple” because of the varying regional charges, which relate to the additional costs faced in some areas of the country due to geographical differences.
Davey added: “If we were to socialise the costs across the UK, other people would be paying more.”
Energy minister Matthew Hancock, responding to a separate question from Labour backbencher Nia Griffith on the issue, said the gap between distribution costs “has shrunk” under this government.
He added: “Whether we go to a single position across the whole country is worth considering.
“There may be benefits to remote areas that have the highest cost not, but there would be a cost to others because it has to be paid for.”
National Grid’s UK executive director told Utility Week that the company would be willing to work with Government and Ofgem on what a different changing base could look like, but maintained that the current method “sends an economic signal” to investors which “reflects the incremental costs” of transmitting energy from the source to areas of demand.
He added that there are “two sides to the story” because areas close to generation sources currently benefit from their proximity but lose that benefit if a single cost were charged.
“You could end up with people in one part of the country subsidising those in another,” Pettigrew said.
Last month Scottish Power’s parent company Iberdrola said alongside its latest financial results that high transmission charges in Scotland have made it uneconomic for it to bid the 2,400MW plant into the UK’s capacity auctions due to take place in December – threatening the plant’s future.
Pettigrew shrugged off concern that National Grid’s transmission charges might jeopardise plant which contributes to security of supply saying the measures have been in place for 22 years, and has benefitted demand-takers in the north of the country.
“It’s a decision for Scottish Power as to whether they participate in the capacity auction,” Pettigrew added.