Independence can help tackle fuel poverty
First Minister welcomes independent expert energy commission report
A new report out today highlights that independence will give Scotland new powers to tackle fuel poverty, high energy costs and prices. It also highlights that a single GB energy market is the best option for consumers in Scotland, England and Wales.
First Minister Alex Salmond has welcomed the report and its recommendations from the independent Expert Commission on Energy Regulation.
The Commission’s report will be discussed by industry experts at a meeting of the Scottish Energy Advisory Board (SEAB) in Aberdeen – Scotland’s energy capital. Speaking ahead of the meeting the First Minister, said:
“This is a detailed and authoritative report and I am grateful to Robert Armour and his fellow Commissioners for their time, expertise and dedication. The Commission rightly recognises that independence will give Scotland new powers to tackle fuel poverty and reduce the impact of high energy costs and prices.
“This Government will continue to build on all its achievements in delivering energy efficiency and cost effectiveness and continue to improve delivery to disadvantaged and vulnerable consumers. The report rightly highlights that independence will open up new possibilities which could better address Scotland’s energy needs, and recognises that it is in our common interest to share energy resources across our borders.
“Scotland is a resource rich country and it offers safe and secure supplies of electricity and gas, and can continue to assist the rest of the UK in meeting its legally-binding renewable energy targets.
“It’s clear that a strategic energy partnership between our governments after independence represents the best outcome for all concerned and the Commission has clearly identified examples from across Europe – in Ireland, Iberia and Scandinavia – which show that this can be done.”
The Commission, comprising energy industry, consumer experts and academics, and headed by senior counsel and former SCDI chairman Robert Armour, was set up last year to offer independent advice on energy in an independent Scotland. Robert Armour, Chair of the Expert Commission, said:
"In the event of independence there are undoubtedly issues that will have to be settled between the two administrations. We share a common integrated system and have a common interest in energy security. Looking to Europe and beyond we found working models of cross-border partnerships delivering jointly-regulated integrated markets that show single markets can work with goodwill and cooperation.
“Eradicating fuel poverty has proved an intractable challenge. We believe a more radical approach is now needed. We see an opportunity to better target delivery to disadvantaged and vulnerable consumers through accessing data already held on social need. In the future we will be able to take this approach further using the improved data that will come from the roll out of smart meters.
“Scotland’s natural potential makes it a cost-efficient place to develop renewable resources. We see a benefit to both Scotland and the rest of the UK in enabling this economically efficient development of renewable potential to continue.”
The Commission’s report highlights the following key messages:
- A continuing single GB energy market, which the Scottish Government has consistently supported, is the best outcome for consumers and investors in Scotland, England and Wales.
- Working models of combined energy markets, built on partnerships between separate countries and Governments, exist across Europe.
- An independent Scotland will need its own energy regulator, and that the Scottish Government’s combined regulatory model could successfully deliver this.
- The existing costs of renewable support mechanisms at the point of independence should continue to be spread across GB as at present.
- Importance of continued efforts and additional measures to tackle fuel poverty and energy efficiency.
Notes To Editors
In July 2013, the Scottish Government established an expert commission of industry and consumer experts and academics, and asked them to offer independent advice on the operation and regulation of the energy market in Scotland and Great Britain in the event of independence. The Commission was also asked for its advice on policies to encourage renewables, improve energy efficiency and address fuel poverty in Scotland.
Members of the Commission are:
- Robert Armour, Chairman, Smarter Grid Solutions; Senior Counsel, Gowlings; Director, Albion Community Power; Nuclear Liabilities Fund; Former Chair SCDI - Chair of the Expert Commission.
- Simon Bucknall, Retired, Formerly Director of Regulation, Scottish Power.
- Tom Delay, Chief Executive, The Carbon Trust.
- Audrey Gallacher, Director of Energy, Consumer Futures.
- Dr Robert Gross, Director, Centre for Energy Policy and Technology, Imperial College, Co-Director, UK Energy Research Centre
- Gordon MacDougall, Chief Operating Officer, UK and Ireland, Renewable Energy Systems.
- Dr Fiona Riddoch, Managing Director, Cogen Europe.
- John Scott, Director, Chiltern Power, Formerly Director of Engineering National Grid and Technical Director, Ofgem.
- David Sigsworth, Chairman, SEPA, Chairman of the Scottish Fuel Poverty Forum, Former Board Director, SSE.
- Dr Graeme Sweeney , Special Advisor on CO2 to Royal Dutch Shell, Executive Chair of Chop-cloc ; Chairman of the Advisory Council of the European Technology Platform on Zero Emission Fossil Fuel Power Plants (ETP-ZEP).
The five specific issues which the Commission was asked to consider are:
- The role of a Scottish regulator in the optimal operation of the UK energy market to deliver affordability, security of supply and environmental sustainability
- The market mechanisms necessary to ensure an independent Scotland can participate efficiently in an integrated GB-market, addressing the unique requirements of energy generation, transmission, distribution in Scotland
- How a strategic energy partnership with UK will operate – its span of competence and the processes for co-operation with the UK
- Options for an optimal policy and regulatory environment to encourage renewable generation, including incentives for innovative technologies and the supply chain.
- Advice on ways in which an independent Scotland can promote fairer, more affordable energy prices, given the need to address fuel poverty and measures to improve energy efficiency.
A copy of the report summary can be found here -http://www.scotland.gov.uk/Publications/2014/06/3446
A copy of the full report can be found here - http://www.scotland.gov.uk/Publications/2014/07/1149
Further information on the commission can be found here:http://www.scotland.gov.uk/Topics/Business-Industry/Energy/resources/ExpertCommission
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