LONDON (Reuters) - Energy costs are likely to rise for households in Scotland if the country becomes independent, Britain's Climate Change and Energy minister said on Tuesday.
The costs of producing energy to power Scotland's 3 million homes is subsidised by the total 33 million households across Britain, Ed Davey told delegates at the Scottish Renewable Conference in Edinburgh.
"The size of the United Kingdom protects Scottish consumers from the full costs of Scottish power generation. In the United Kingdom, Scotland's households pay less than they would in Scotland alone," he said in an advance copy of his speech.
The debate over whether Scotland, which has a population of just over 5 million, should leave the United Kingdom has become increasingly heated as the referendum on September 18. approaches.
At the same time the issue of soaring energy costs has risen up the national political agenda after above-inflation price rises by Britain's dominant energy suppliers drew public anger last year.
Currently Scotland provides one third of the United Kingdom's total renewable generation and receives a quarter of Britain's renewable subsidies.
"If Scotland were to choose to go it alone, maintaining this level of support would take up a greater proportion of national finances.
Meaning either higher taxes, higher energy bills or cuts in other areas," Davey said. The government estimates that around 40 billion pounds will be spent on building new renewable energy projects in Britain by 2020 to double its current installed green energy capacity of 20 gigawatts.
Davey also said Scotland was in line to receive more than 6 billion pounds over the next seven years to help pay for infrastructure upgrades to improve electricity supplies to remote parts of the country. He said an independent Scotland would need to find cash for the upgrades from its own coffers.
The Scottish National Party has previously said independence would not undermine the country's renewable investment.
Scottish parliamentarian Maureen Watt said in January an independent government would ensure a system of fiscal stability for the oil and gas industry and prioritise investment in the offshore renewables industry.
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The costs of producing energy to power Scotland's 3 million homes is subsidised by the total 33 million households across Britain, Ed Davey told delegates at the Scottish Renewable Conference in Edinburgh.
"The size of the United Kingdom protects Scottish consumers from the full costs of Scottish power generation. In the United Kingdom, Scotland's households pay less than they would in Scotland alone," he said in an advance copy of his speech.
The debate over whether Scotland, which has a population of just over 5 million, should leave the United Kingdom has become increasingly heated as the referendum on September 18. approaches.
At the same time the issue of soaring energy costs has risen up the national political agenda after above-inflation price rises by Britain's dominant energy suppliers drew public anger last year.
Currently Scotland provides one third of the United Kingdom's total renewable generation and receives a quarter of Britain's renewable subsidies.
"If Scotland were to choose to go it alone, maintaining this level of support would take up a greater proportion of national finances.
Meaning either higher taxes, higher energy bills or cuts in other areas," Davey said. The government estimates that around 40 billion pounds will be spent on building new renewable energy projects in Britain by 2020 to double its current installed green energy capacity of 20 gigawatts.
Davey also said Scotland was in line to receive more than 6 billion pounds over the next seven years to help pay for infrastructure upgrades to improve electricity supplies to remote parts of the country. He said an independent Scotland would need to find cash for the upgrades from its own coffers.
The Scottish National Party has previously said independence would not undermine the country's renewable investment.
Scottish parliamentarian Maureen Watt said in January an independent government would ensure a system of fiscal stability for the oil and gas industry and prioritise investment in the offshore renewables industry.
yahoo.com
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