by EDDIE BARNES
SCOTLAND should withdraw from the UK-wide energy market and put control
over its own resources into public hands, a radical new report declares today.
Published by the left-wing Jimmy Reid Foundation amid growing anger over
the costs of Britain’s energy bills, the report says that, with either
independence or devo-max, a new public corporation should be put in charge
of running the grid, pricing electricity and investing in new energy
infrastructure.
It would then pour billions of pounds into boosting Scotland’s green energy
potential, and also reduce the flow of oil coming from the North Sea, in a
bid to cut CO2 emissions.
Backed by the Scottish Greens – who are hosting their conference in
Inverness this weekend – the authors argue that in private hands the UK
energy market is on the point of collapse, lacks investment and is pushing
up bills for hard-pressed consumers.
But critics last night dismissed the proposals as “fanciful”, saying any
plan which ended the UK-wide energy market would mean the vast cost of
subsidising expensive green energy would fall on households in Scotland.
The paper, written by contributors from Glasgow, Heriot-Watt and Glasgow
Caledonian universities, says that a Scottish Energy Authority (SEA) and a
Scottish Electricity Generation Corporation should be created after powers
are transferred to Holyrood to oversee the entire energy sector.
It would then run down nuclear, coal and gas-fired stations and plough
massive investment into renewable energy by issuing billions of pounds
worth of government bonds.
In return, it argues, wind farms and new renewable projects will all be
owned by the government or community groups. The paper claims bills could
be lower because government could borrow at a lower rate and would not have
to make a profit.
It concludes that because of “inherent market failures” in the UK’s energy
market, “only by breaking out of this policy regime and developing an
alternative agenda around new forms of strategic planning and public
ownership can Scotland fulfil its true potential and wider obligations as
an energy-rich nation”.
It also calls for a completely different approach to the North Sea. “Rather
than an over-focus on producing as much oil as possible – current UK and
Scottish Government objectives coincide in trying to increase the rate of
production – the SEA would seek to reduce production from the North Sea,
developing a more integrated and responsible approach to carbon emissions”.
The call comes after reports on independence have shown that North Sea oil
revenues will be required to pay for current spending in Scotland.
It also notes that most of Scotland’s privatised energy assets at present
are foreign-owned. It adds: “It could plausibly be argued that French,
Norwegian and Russian governments – through their state-owned corporations
– have collectively far more control over UK (and Scottish) strategic
energy interests than any British political actor.”
Alison Johnstone, Scottish Green MSP for Lothian and a member of Holyrood’s
economy and energy committee, said: “By taking responsibility, Scotland
could prioritise common ownership, create high-quality jobs and move away
from the fossil fuels we simply cannot afford to burn.”
The move would be best achieved through independence, the authors declare,
although they say it could also be achieved by transferring responsibility
for energy to a devolved Scottish Government.
But the plan met with little enthusiasm from the SNP government last night.
A spokeswoman said: “The Scottish Government does not propose the
nationalisation of the assets of the power companies.
“But it’s good to have a lively debate about how Scotland’s enormous energy
resources can be used to benefit consumers, communities and the wider
economy, particularly as we know Westminster decisions have led to the
squandering of billions of pounds of Scotland’s energy wealth.”
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