Maintaining a UK-wide energy market would be best outcome, report concludes – The Herald

Magnus Gardham
Political Editor

AN INDEPENDENT Scotland could establish a single energy market with the
rest of the UK, provided there was “goodwill and co-operation” between the
two countries, according to a report commissioned by the Scottish
Government out today.

The Government’s independ-ent Expert Commission on Energy Regulation said
comb-ined energy markets, built on partnerships between separate countries,
existed elsewhere in Europe.

It concluded that a continuing Britain-wide energy market – which the SNP
insist would follow independence – would be the best outcome for consum-ers
and utility companies in Scotland, England and Wales.

It also said the rest of the UK should continue to subsidise Scotland’s
renewable energy sector if the country became independent.

The view contradicts warnings from the UK Government, which has said it
would not subsidise green power produced in an independent Scotland and
would only buy it “on a commercial basis”.

The long-awaited expert report, which was due to be published in the
spring, will be officially unveiled by First Minister Alex Salmond and
Robert Armour, the chairman of the commission, in Aberdeen today.

Mr Armour, an energy expert and former chairman of the Scottish Council for
Develop-ment and Industry, said: “In the event of independence, there are
undoubtedly issues that will have to be settled between the two
administrations.

“We share a common integ-rated system and share a common interest in energy
security.

“Looking to Europe and beyond, we found working models of cross-border
partner-ships delivering jointly-regulated integrated markets that show
single markets can work with goodwill and cooperation,” he added.

Welcoming the commission’s findings, Mr Salmond said it was “in our common
interest to share energy resources across our borders”.

He added: “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.”