The UK energy secretary has been accused of “madhouse” economics by claiming independence would put up energy bills when the UK allegedly penalises Scottish communities with high energy costs.
Ed Davey said Scottish bills would rise “by tens of pounds” every year – suggesting a rise of up to £8 a month. SNP MSPs insist that Scotland is subsidising a solar panel boom in England, faces higher connection charges and suffers some of the highest rates of fuel poverty.
Mr Davey believes UK energy consumers will be unwilling to subsidise Scottish generators. But Holyrood Energy Minister Fergus Ewing said the UK would face disastrous consequences if Scotland left the single energy market.
Speaking at Holyrood’s energy committee yesterday, SNP MSP Mike McKenzie said island generators pay six times as much to connect to the grid as mainland generators, while the recent reductions in solar panel subsidies means Scotland will not benefit from the money it has paid in.
SNP MSP Angus McDonald raised the case of energy firm Aquamarine Power, which faces £3.5million worth of “locational charges” for its array near Lewis.
“This is a massive penalty,” he said. “To put it into context, a renewable energy project of the same size in southern England would pay just £40,000 a year.”
He added: “With the Western and Northern Isles home to probably the world’s best wind, wave and tidal resources – as you have said yourself – is this not the economics of the madhouse?”
On independence, Mr Davey said: “At the moment consumers across the UK are paying for renewable obligations – subsidies – so you are right to say that if Scotland were to become independent it would raise a lot of questions in that area.”
But SNP MSP John Wilson said: “It has to be put on record that Scottish consumers are already paying for the installation of solar panels in south-east England, so they are making a contribution to renewables targets.”
Mr Ewing later told the committee that English jobs and consumers would feel the brunt of any decision to push an independent Scotland from a single UK energy framework.
Such a “scorched earth” policy would go against decisions already made by regulators, he said.
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