Tag Archives: Westminster

Energy Minister raises renewables concern

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Minister raises grave concerns in letter to Ed Davey.

Scotland’s Energy Minister, Fergus Ewing, has warned that the UK Government’s Electricity Market Reform proposals could undermine Scotland’s renewables sector and supply chain, while threatening security of supply across the UK, and further price increases on consumers bills as a result.

In a letter to Secretary of State Ed Davey, Mr Ewing has highlighted the threat which the current proposals pose to Scotland and the UK’s shared renewables ambitions. This warning extends to concerns – also raised by Ofgem and the National Grid – about the ever tightening gap between maximum generating capacity and peak electricity demand across the UK, and the need to preserve thermal generation in Scotland to help keep the UK’s lights on.

Mr Ewing has also challenged Mr Davey to explain a last minute amendment to the UK Energy Bill that will remove the Scottish Government’s existing powers and discretion over support for renewable technologies across Scotland. The UK Government’s amendment is to be debated by the House of Lords on Monday November 4, 2013.

Mr Ewing said:

“We have examined the UK Government’s proposals carefully, discussing them in detail with the industry and other stakeholders. I believe beyond doubt that the current proposals risk failing Scotland and the UK in a number of vital areas, and present a huge risk to UK security of supply as well as to investor confidence and our low carbon ambitions.

“The Scottish Government will not support an outcome which sacrifices our renewable ambitions in preference to discredited, expensive and imported nuclear technology.

“Nor should thermal generation in Scotland – vital to maintaining grid stability here, and to providing security of supply across the UK – be placed at risk through a failure to take Scottish issues properly into account.

“Both Ofgem and National Grid have expressed deep concern regarding the risks that the UK faces both this winter and in the years ahead due to tightening capacity margins. It would be extremely unwise to ignore the vital and combined contribution of Scotland’s renewable and thermal generation to keeping the lights on across the UK.

“Unless serious and considered steps are taken to address these matters, and which supports investment in thermal generation across the whole of the UK, then the threat of blackouts will crystallise rapidly. The failure to secure a proper margin of capacity over peak demand will inevitably see further price rises on energy bills – resultant from UK energy policy failure over the past decade, as a result of the laws of supply and demand.

“We now know that the UK Government has also proposed a last ditch amendment to the Energy Bill, which will allow UK ministers to close the Renewables Obligation in Scotland. I find it extraordinary that the UK Government has chosen to act in this way, and to strip Scottish Ministers and the Scottish Parliament of their powers and discretion in an area of such vital importance.

“The UK Government has produced this amendment with no consultation or explanation. We are deeply concerned about this summary removal of the Scottish Government’s discretion in an area of such vital importance to our people and economy.

“As a matter of urgency the UK Government must provide a detailed justification for its action.”

The Scotland Bill needs further examination

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The Scottish Government has moved quickly to enable scrutiny of the Scotland Bill by the Scottish Parliament.

In a Ministerial Statement to the Scottish Parliament, External Affairs Minister Fiona Hyslop announced that a legislative consent memorandum has been lodged today, giving Parliament the maximum amount of time to consider the Bill.

Detailed work will be undertaken by a Parliamentary Committee, but the whole Parliament will have the opportunity to debate the changes proposed.

The memorandum sets out the Scottish Government’s analysis and position on the Bill and its recommendations for making improvements.

Ms Hyslop said:-“The Bill requires consent of the Scottish Parliament, so we have moved quickly to enable full scrutiny to commence without delay.

“As we have made clear, we welcome many aspects of the Scotland Bill and the further devolution of powers it provides. However, overall, this is a missed opportunity that does not meet the ambitions this Government – nor indeed the majority of the people of Scotland – have for this country.

“The key test for this Bill should be whether it delivers the priorities of the people of Scotland – to grow the economy, to protect jobs and to ensure proper investment in public services. We do not believe the Bill as it stands will deliver on those priorities, and indeed may hinder them. Careful scrutiny is vital to achieve the improvements that we believe should be made.

“We are particularly concerned about the unanswered questions on the financial proposals which would reduce the resources available for public services in Scotland. Unfortunately, the UK Government has so far failed to give the information that will allow proper consideration of this vital element of the Bill.

“The UK Government expects the Scottish Parliament to foot the bill for implementation of the measures in the Bill. The UK Government’s partial Regulatory Impact Assessment, published today, confirmed that Holyrood will be expected to pay these costs, but provides only indicative costs of £45 million to set up HMRC systems and another £4.2 million per year to operate the flawed income tax proposals. The people of Scotland already pay for the costs of running HMRC through their taxes levied by the Treasury, now the UK Government wants them to pay a second time through the money provided in the Scottish Budget for vital public services.

“We urge the Scottish Parliament to consider the proposals very carefully and to ensure the final Bill is one which everyone can say with confidence will be better for Scotland. We will support the Parliament’s process fully and work to ensure the Scotland Bill evolves into a package of measures that delivers for Scotland.”

In the Scottish Social Attitudes Survey (January 2010), 69 per cent of respondents favoured significantly more powers for the Scottish Parliament. On tax (59 per cent) and welfare benefits (60 per cent), a majority want the Scottish Parliament to make the decisions for Scotland.