Addressing energy industry stakeholders in Edingurgh recently, Secretary of State for Energy and Climate Change Ed Davey spoke on the importance of a single energy market for the UK.
Davey cited the ability of a market that, as a whole, is 10 times the size of Scotland’s, is able to secure lower costs for all of its consumers.
This is possible through shared distribution network investment and subsidies.
According to DECC, as an independent nation, Scottish households would pay at least £38 more per year for their energy.
That jumps to about £190 more a year once the cost of renewables support is factored in.
“The UK works better together, and our single energy market shows why. As a United Kingdom, we keep energy bills down for all consumers, regardless of where they live, and this works well, especially for people in Scotland,” Davey said
“Without unrestricted access to the integrated GB market, the costs of supporting Scottish energy network investment, small-scale renewables and programmes to support remote consumers would fall on Scottish bill payers alone – this would add at least £38 to annual household energy bills and around £110,000 to energy costs for a medium-sized manufacturer in 2020.
“In addition, if the full costs of supporting large scale Scottish renewables fell to Scottish bill payers the total potential increase would rise considerably up to £189 for households and £608,000 for a medium sized manufacturer in 2020”.
“Right across the energy mix, Scotland benefits from being part of the UK’s strong, stable consumer and tax base – supporting thousands of jobs, creating new supply chains and cementing the energy sector as the engine room of the economy.”