THE UK Government has been urged to set out how it plans to bring down energy bills in Scotland after proposals to bring in zonal pricing were rejected.
On Thursday, UK Energy Secretary Ed Miliband confirmed that plans to proceed with the scheme, which would have set lower electricity prices in areas where supply far outstrips demand, have been ditched.
Such an initiative was expected to bring down energy bills in Scotland, due to the high level of power generation in the country.
Greg Jackson, CEO of Octopus Energy – and a prominent campaigner for introducing zonal pricing – warned of "soaring" energy costs being "locked in for years to come" as a result of the decision.
On Thursday, Miliband announced that the UK Government would instead introduce a "reformed system of national pricing", which he said was "the best way to deliver an electricity system that is fairer, more affordable, and more secure, at less risk to vital investment in clean energy than other alternatives."
The Scottish Government's Energy Secretary, Gillian Martin, has now called on the UK Government to urgently lay out plans to cut bills, citing a Labour manifesto pledge from last year's General Election.
She said: “The UK Government promised to cut bills – instead, they have increased.
“They promised that bills would fall by £300, but bills are higher than they were this time last year.
“The UK Government have set out what they will not do; they now need to set out what they will do to bring bills down.
“Given the significance of Scotland’s renewables sector, the Scottish Government must be fully involved in decisions on reforming the national energy market in a way that brings down bills and delivers a level playing field for renewables in Scotland.”
Commenting on the UK Government's announcement, Scottish Secretary Ian Murray said: “This is great news for Scottish jobs. We have listened to Scottish industry and made a positive decision to reform our energy market, ensuring consumers feel the benefit of our clean energy mission.
“Bills are already falling in Scotland and we'll bring them down for good by getting off the rollercoaster of foreign gas, and winning the race to clean power. This decision will safeguard the investment required to win that race and secure thousands of good Scottish jobs for decades to come.
“This package of measures will create a predictable climate for Scottish industry and ensure the whole of Scotland benefits from our clean energy future."
