Scotland’s Independence White Paper: Single UK-wide market for gas and electricity to continue

This Government proposes that, provided this is not jeopardised, Scotland will continue to participate in the GB-wide market for electricity and gas, reflecting the integrated transmission networks between Scotland and the rest of the UK.

There is a common interest in sharing our energy resources with our neighbours: Scotland can continue to provide safe and secure supplies of electricity and gas and can assist the rest of the UK in meeting its renewable energy targets.

Our continued participation in a single GB-wide energy market is also in line with the trend for increasing integration of energy markets across Europe.

Under-investment in energy generation over decades has led to a looming security of supply crisis. Spare generating capacity throughout the UK is now at its lowest level for a generation, and Ofgem forecasts that it will contract even further.

The Westminster Government’s proposals to reform the electricity market are intended to address these concerns, but they present major risks. Scotland’s ability to provide for our own long-term energy requirements may be compromised – and our status as a provider of reliable supplies to the rest of the UK is now endangered.

This situation should not have transpired. Scotland’s substantial energy resources and balanced generation mix can provide secure long-term supplies of energy at home and substantial cross-border exports, helping to maintain a comfortable generating capacity margin throughout the GB grid.

Scotland’s surplus energy can help to prevent energy shortages and price spikes across these islands.

 Under these proposals, the current market trading arrangements for electricity and gas will continue, with the aim of maintaining a competitive market for energy throughout these islands. This meets the legitimate expectation of consumers, suppliers and generators of energy across Scotland and the rest of the UK.

This Government proposes that a single Transmission Operator will continue to balance supply and demand across Scotland and the rest of the UK.