The analysis published by the Department of Energy and Climate Change (Decc) on the impact Scottish independence would have on the UK energy sector, stated that Scottish generation is not essential to keep the lights on, as claimed by the Scottish Government.
The report said only 4.59 per cent of electricity demand is met by generation sources in Scotland, with energy exports occurring “typically when windfarms are generating”.
This shortfall would not be an issue for the rest of the UK (rUK) because wind imports from Scotland reduce “the need to generate power from coal and gas fuelled power stations”, while English and Welsh windfarms will also generate at similar times to Scottish windfarms, “reducing the risk of a shortfall”.
The lack of access to Scottish generation would also have “minimal impacts” on rUK in the event of Scottish Independence because such a scenario would be balanced by the removal of Scottish peak demand.
The UK government also restated that a yes vote in the September referendum would lead to higher energy bills in Scotland, up to £189 per year for domestic customers, and up to £608,000 a year for a medium sized manufacturer by 2020.
The report said these costs would be picked up by Scottish consumers because Scotland would lose the support gained by the UK energy market which is ten times the size of a potential Scottish market.
The additional costs to Scottish consumers could be even higher once “legacy costs” for old coal and nuclear facilities, and the impact of reduced competition are incorporated onto energy bills.
UK energy secretary Ed Davey said: “As a United Kingdom, we keep energy bills down for all consumers, regardless of where they live, and this works well, especially for people in Scotland.”
He added: “Right across the energy mix, Scotland benefits from being part of the UK’s strong, stable consumer and tax base – supporting thousands of jobs, creating new supply chains and cementing the energy sector as the engine room of the economy.”