A powerful group of MPs has told UK ministers and regulators to draw up plans for a radical overhaul of the energy market to cut power bills for Scottish families.
Westminster’s energy committee called for a major new study into a charging system which currently penalises consumers because they live in the north and north-east.
Last night the move was hailed as a “crucial step” towards abolishing the surcharge and slashing consumer costs.
And one of the report’s authors praised the Press and Journal’s Fair Deal on Energy Prices campaign as having been key to pushing the issue “up the agenda”.
Demands for a shake-up of the charging system have been growing steadily since October last year when we highlighted the “postcode lottery” of regional pricing that adds hundreds of pounds extra to bills in northern Scotland.
Last week, Britain’s new business regulator – the Competition and Markets Authority – said there were “clear arguments” for changing it so Scots pay less.
In an inquiry report published today, the influential energy and climate change select committee has agreed the current model is “complex” and makes it “difficult to compare price and performance”.
The MPs said moving to a new national tariff for gas and electricity transmission and distribution – which would slash bills across northern Scotland from Aberdeen to Stornoway – would require “major changes”.
They concluded: “For this change to be considered, further evidence must be gathered and a robust analysis undertaken.
“We recommend that the government and Ofgem publish an evidence-based analysis of the advantages and disadvantages of introducing national tariffs for transmission and distribution network charges.”
Sir Robert Smith, vice-chairman of the committee and Liberal Democrat MP for West Aberdeenshire and Kincardine, said the recommendation was vital.
“The key thing is to get this further study and actually taking forward what is needed to get proper pricing across the country,” he said.
“It’s a crucial step because we need to have the practical understanding in place if we’re going to take it further.”
He added: “The Press and Journal’s campaign has certainly helped to put the spotlight on the issue and raise it up the agenda.”
Committee chairman Tim Yeo, a Conservative MP, said the regulator Ofgem must “get its act together and scrutinise these near monopolies more effectively”.
He added: “Simpler charging methodologies are needed to strengthen the market’s ability to scrutinise costs and increase the pressure for greater cost-saving efficiencies.”
The UK Government is expected to issue an official response to the select committee’s recommendations in the coming weeks.
A spokeswoman for the Department of Energy and Climate Change said: “Providing value for money to consumers is our priority – network costs were 17% lower last year than before privatisation, and nearly £20billion has been invested in gas and electricity networks since 2010.
“The committee recognises the current framework is an improvement, but we know there is more to do.”
An Ofgem spokesman said: “Ofgem notes the committee’s views and welcomes debate on the regulation of the energy network and believes our regulation has delivered value for money.
“We are in the process of implementing a number of the actions the report highlights, including introducing more competition to networks and looking to increase the notification period of network charges.
“Additionally, we estimate that our innovation stimulus will see companies realise around £900million of benefits to consumers in the next eight years.”