THE UK Government is under increasing pressure to overhaul the energy system in a plan that proponents say could save up to £18 billion a year.
The SNP have joined trade body Energy UK and the Scottish Greens in calling on Westminster to decouple renewable energy prices from the cost of gas.
According to Energy UK, this would save the average household around £250 a year while saving businesses up to a whopping £11bn in the same period.
Currently, unit prices for all forms of energy are tied to gas prices which have risen dramatically in recent years.
READ MORE: Nicola Sturgeon marks launch of UK's tallest wind turbine
SNP MP Alan Brown said this means that consumers using domestically-produced renewable energy, which is cheaper and more environmentally friendly than fossil fuels, are being unfairly impacted by soaring gas prices.
The Kilmarnock and Loudoun politician has written to Minister for Business, Energy and Industrial Strategy Grant Shapps urging him to overhaul the energy system.
He urged the minister to act immediately to untie the price of renewables from the price of gas.
Commenting, he said: “One way the UK Government can ease the pressure on households and businesses is by decoupling the price of retail energy from expensive gas bills.
“Right now, the unit prices for all forms of energy are pegged to gas prices, meaning that those using renewable energy to power or heat their home, which is much cheaper, are still being adversely affected by rising gas prices.
“The UK Government must urgently fix this unfair system. Doing so could lower energy bills by up to £18 billion a year, and benefit both businesses and households, according to Energy UK.
“Beyond that, it must also address the unjust system that sees consumers in Scotland pay higher standing charges.
“It is ridiculous that this is even the case.”
Scottish Greens MSP Mark Ruskell told The National that renewables are being "held back" by "dirty energy".
He said: "With the price of gas soaring and the planet burning, it's more vital than ever that we make the transition from fossil fuels.
"Renewable energy is the cheapest and cleanest energy, but it is being held back by a system that links it to the cost of the dirty and polluting energy sources that we desperately need to leave behind.
"Our energy market is broken. If we are to have any kind of sustainable future then it must be fundamentally restructured to ensure that it works for people and planet rather than shareholders."
Frazer Scott, CEO of Energy Action Scotland, which campaigns for an end to fuel poverty, told The National it supported the call.
He said: “Scotland's households need and deserve a fairer energy system at the same time pricing of energy is in need of radical reform.
“Decoupling renewable energy generation from the high price of gas or indeed nuclear has the potential to reduce costs.
“Scotland is energy rich yet many of our communities derive little or no benefit from renewables generated on their doorstep. With over 1 in 3 households in fuel poverty we need to see a fairer pricing structure with people at its heart.
“Unaffordable energy will cost lives this winter and beyond, placing an intolerable burden on health services. But warm words do not heat homes.
“This is a crisis of pandemic proportions that demands to be treated and prioritised in an equivalent manner.”
An Energy UK spokesperson told The National: “The current energy market doesn’t allow customers to fully benefit from the cheapest form of electricity; domestically produced low-carbon generation.
READ MORE: UK accused of 'outrageous power grab' as experts sound alarm over EU law bill
"This proposal could reduce bills by up to £18 billion per annum, delivering much-needed cuts to bills for both households and business customers.
“By giving generators the chance to secure a longer-term agreement with lower returns in place of selling electricity at wholesale market prices, this scheme would be a significant first step to decoupling gas from retail electricity prices.
"Removing the link between gas and retail electricity prices will be complex and take time, but this solution provides a quick fix for up to 40% of our generation capacity”
“Much will depend on how the details of the scheme, but with gas prices likely to remain high for some time, we are confident that it can deliver significant savings for customers next year.”
The UK Government was approached for comment.
How has Brexit affected your Scottish business?
Has Brexit had an impact on your Scottish business? Whether you work in hospitality, travel, or any other sector we would love to hear from you. We already know leaving the EU has meant empty shop shelves, delays in orders and price rises for Scots businesses. Now we want to hear from owners themselves to find out what Brexit has done to our firms.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel