Energy bills ‘would soar’ in an independent Scotland

POWER bills are likely to soar in an independent Scotland because the cost of fuelling its three million houses is subsidised by 33million UK homes.

By: Dean Herbert

Published: Wed, March 19, 2014

Westminster Energy Secretary Ed Davey said that, if Scotland were to break away from the UK, it would have to pick up the entire bill for renewable subsidies, leading to “either higher taxes, higher energy bills or cuts in other areas.”Mr Davey told the Scottish Renewables conference in Edinburgh that Scotland receives a quarter of the UK’s renewable power subsidies, with 10 per cent of the population.He also said that there was no guarantee the UK would buy electricity post independence.

Mr Davey said: “The UK protects Scottish consumers from the full costs of power generation. In the UK, Scotland’s households pay less than they would in Scotland alone.

“Maintaining this support would take up a greater proportion of national finances, meaning  higher taxes, higher energy bills or cuts in other areas.”

He also warned nationalists that their assertion the UK would continue to import energy from Scotland is likely to be incorrect.

Mr Davey pointed to countries like Ireland, Iceland and Norway as markets for wind and hydro power, along with untapped potential in England and Wales.

He added: “The Scottish Government can assert UK consumers would continue to subsidise the costs of Scottish renewables and buy Scottish electricity to meet renewables targets no matter what the cost, but this goes against all commercial logic.” (and political – ed)

Scotland is due to receive more than £6 billion over the next seven years to help pay for electricity infrastructure upgrades in remote parts of the country. But an independent Scotland would need  cash  from its own coffers if it chooses to leave the UK.

A Scottish Government spokesman said: “The current breakdown of payments from suppliers to generators is related to the huge amount of renewable power which Scotland produces, not to our population size.”

• From the Daily Express.
• It really is ridiculous that Salmond and the SNP believe that it would be acceptable to the rest of the UK taxpayers to expect them to carry on subsidising Scottish Wind energy. Politically it would be intolerable. As new nuclear and fracked gas generation comes on line and the UK’s ‘reliance’ on Scottish energy declines it will be Scotland importing energy at whatever inflated price UK generations seeks to charge. Remember the ‘reliance’ is a political fudge that favours renewable over cheaper fossil fuel and nuclear. With Scotland outside the rest of the UK they would not be members of that self serving club. They would no longer benefit from that skewed system. Salmond quotes 100% Scottish power from renewables. In the UK wind is for the most part less than 6% and often as low as 1-3%. And that includes Scottish Renewable energy!  This higher cost is balanced out over the rest of generation. 100% of Energy at double, or in the case of the recently approved Beatrice wind farm, three times the cost will be reflected in Scottish Energy prices which will make Scottish manufacture economically un-viable and arguably all but prisoners and MSPs in fuel poverty! I am somewhat surprised at this comment from Davey, the same Lib-Dem Minister that offered grandiose support for wind from the islands at the Glasgow Lib-Dem Conference. But then a week is a long time in politics and since his return from PATERNITY leave, he has obviously forgot all his  previous promises!