Davey slammed on energy bills claim

Jun 20 2012

The UK Energy Secretary has been accused of "madhouse" economics by claiming independence would put up energy bills when the UK allegedly penalises Scottish communities with high energy costs.

Ed Davey said Scottish bills would rise "by tens of pounds" every year - suggesting a rise of up to £8 a month.

SNP MSPs insist that Scotland is subsidising a solar panel boom in England, faces higher connection charges and suffers some of the highest rates of fuel poverty.

Mr Davey believes UK energy consumers will be unwilling to subsidise Scottish generators.

But Holyrood energy minister Fergus Ewing said the UK would face disastrous consequences if Scotland left the single energy market.

Speaking at Holyrood's Energy Committee, SNP MSP Mike McKenzie said island generators pay six times as much to connect to the grid than mainland generators, while the recent reductions in solar panel subsidies means Scotland will not benefit from the money it has paid in.

He said: "Unfortunately, the islands are hit by a triple whammy with fuel poverty in the Highlands & Islands at 50%.

He added: "Last weekend's press (said) that subsidies for onshore wind may be cut by 25% or indeed done away with altogether by the end of the decade."

Mr Davey said uptake on solar panels was "just ginormous and it was busting the budget dramatically", but said the new system will see "three times as many installations at a third of price".

Regarding speculation that subsidies were being reduced or abolished, he said: "I'm not going to have a running commentary on every newspaper article which may not be as well-sourced as some people think it is."