Chamber and committees

Six bids were received. A decision on the award will be made following the conclusion of the standstill period.

EU procurement rules require that we provide a ‘Standstill’ period following notification of the tender evaluation to allow all parties involved the opportunity to seek clarification on the outcome before the contract can be awarded. The standstill period has extended in order to allow proper consideration of matters that have been raised on the outcome.

There have been two extensions to the current contract with Business Stream. The first extension was notified on 18 March 2015 and the second on 4 June 2015.

Due consideration is currently being given to matters raised during the Standstill period, which will inform the decision on the award of the contract to provide billing services for waste and water services.

As stated in answers to previous answers to parliamentary questions (S4W-25246 on 1 May 2015, S4W-25247 on 1 May 2015, S4W-25248 on 1 May 2015, S4W-25588 on 2 June 2015, S4W-25589 on 2 June 2015, S4W-25591 on 2 June 2015, S4W-25895 on 26 June 2015, S4W-25896 on 26 June 2015, S4W-25897 on 26 June 2015), I and other Scottish Ministers maintain regular dialogue with UK ministers, National Grid (Great Britain system operator) and Ofgem on a range of matters relating to electricity supply and generating stations located in Scotland.

Regarding Longannet in particular I have discussed the station’s future with the former Secretary of State for Energy and Climate Change, Ed Davey, on various occasions including most recently in a telephone call on 25 February 2015. Dialogue with ministers in the new Conservative government has continued.

I wrote to the Secretary of State for Energy Amber Rudd about Longannet on 19 May 2015 (the content of the letter is copied below) and to the Exchequer Secretary to the Treasury Damian Hinds on 18 May 2015 to highlight proposals that could improve the economics of open cast sites in Scotland and by extension reduce the input costs of Longannet (also copied below).

All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at:

http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx

Letter to Amber Rudd (Secretary of State for Energy and Climate Change) 19 May 2015:

Dear Amber

I am writing regarding Longannet coal fired power station which is situated in Fife. Longannet plays a significant role in delivering affordable electricity and system operability, as well as making a significant contribution to Scotland’s economy. In March 2015, Scottish Power announced that in all likelihood it will be forced to close Longannet power station prematurely in 2016. Scottish Power has linked its decision to the location-based transmission charging methodology which penalises Scottish generators.

This news is very concerning for the Scottish Government, not least because of the impact early closure will have on the 270 direct employees at Longannet and those affected within the related supply chain, but also given Longannet’s huge strategic importance to Scotland.

I have previously discussed this issue with Ed Davey and National Grid and would like to continue that engagement by discussing with you possible options for averting the premature closure of the site.

You may be aware that the Scottish Parliament’s Economy, Energy and Tourism Committee are currently holding an inquiry into ‘security of supply in Scotland’. They begin their formal evidence sessions tomorrow and I would anticipate they will be keen to hear evidence from your department.

I hope you will agree that this could be covered in the first of the quarterly meetings between us that I proposed in my letter of 15 May.

Yours sincerely

Fergus Ewing

Letter to Damian Hinds Exchequer Secretary to the Treasury 18 May 2015:

18th May 2015

Dear Damian,

Warmest congratulations on your appointment as Exchequer Secretary to the Treasury.

I am writing to ask for your help in progressing work on Coalfield Restoration which previously Priti Patel was overseeing for Treasury, and an issue which I am hopeful that given the commercial pressures in the coal sector and the ongoing challenge of unrestored sites for local communities, we can now move quickly to address.

I am hopeful that we can build on the history of strong cross-party support on this matter. I am particularly grateful for example to David Mundell, who sits on the Scottish Coal Taskforce, for his help previously in raising these issues with his colleagues in Treasury and in The Department of Energy & Climate Change (DECC). Hence, during the March Budget statement, the Chancellor made a commitment that the UK Government would work closely with the Scottish Coal Task Force to explore options for addressing the environmental liabilities associated with unrestored opencast mines in Scotland. A commitment warmly welcomed by the Scottish Government.

A few days after the Budget I wrote to Priti Patel about how best to explore the options. However, it has been difficult to make progress at the same pace during the Purdah period for understandable reasons. The Taskforce supports an industry-led proposal which I hope can now be looked at swiftly by DECC and Treasury officials. I would be very grateful therefore if you could encourage your officials to take matters forward with mine and colleagues in DECC so that this and any other possible option, can be fully explored.

Given the backstory, I am copying this letter to the Secretaries of State for Scotland, Energy and Climate Change and to the Chancellor of the Exchequer. The next Taskforce meeting is on Monday 15 June in Glasgow, and it would be really helpful to be able to update members on progress.

Yours Sincerely

Fergus Ewing

I refer the member to the answer to question S4W-25667 on 15 June 2015. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at: http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx

I also refer the member to the answer to question S4O-04383 on 27 May 2015. All answers to oral parliamentary questions are available on the Parliament’s website, the search facility for which can be found at:

http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx

A decision on the award will be made following the conclusion of the standstill period.

The contract was due to end on 31 of March 2015. The current contract extension expires on 30 September 2015.

A planning application would be determined by the relevant planning authority. An appeal would be considered by the Directorate for Planning and Environmental Appeals. The Scottish Ministers have powers available to them to call-in any planning application for their own determination.

Since 2007, the Scottish Government has done everything possible to address the punitive transmission Great Britain (GB) charging regime. This has led to a significant review of the regime by the regulator Ofgem, but unfortunately the framework has endured. The Scottish Government has been at pains to highlight the disparity between Scottish generators and generators in the rest of GB, which this year will see generators in Scotland pay 42% of the charges, with only 13% of generation connected. We continue to call for action to bring forward a fairer framework that will deliver our policy aims, and high-level objectives such as new thermal generation in Scotland, for which there is considerable cross-party support. The Scottish Government will continue to press for a timely, effective and equitable resolution for Scottish consumers.