Scotland’s industrial development and competitiveness is damaged by UK energy market policies determined by Westminster even though Scotland is very energy rich

By stewartb

The cost of electricity in the UK has surged in recent years, far beyond that of comparable countries, largely because expensive gas-fired generation sets the price most of the time.’ – so Scotland’s industrial development and competitiveness is being impacted – damaged – by UK energy market policies determined by Westminster even tho’ Scotland is very energy rich.

And ‘carry clean power to where it is needed.’ – i.e taking clean power from Scotland (from on- and especially in the near future, offshore wind farms) to England in order to supply the latter with energy that is more secure and less costly than it would otherwise have access to. All this to the relative benefit of industrial development and competitiveness in England. And the relative benefit to Scotland?

Is not clean power ‘needed’ in Scotland too? – but within the Union, with Westminster calling the shots on the pricing of electricity (no ‘zonal pricing’), and despite developing capacity for an over-abundance of offshore wind generated electricity relative to present needs, Scotland lacks the agency to establish a pricing structure for its present and potential future industries that would lead to enhanced competitiveness relative to England and indeed elsewhere in Europe.

(Nothing new here! Was Scotland’s industries not damaged by England’s support for Brexit – and by England’s majority in Westminster opting for an especially ‘hard’ Brexit, against Scotland’s wishes and interests?)

Key industrial influencers on Westminster don’t want the economic geography of the UK to change. From UK Steel News (July 10, 2025) ‘GOVERNMENT HEEDS STEEL INDUSTRY WARNING, SHELVES ZONAL PRICING PLANS’. (https://www.uksteel.org/steel-news-2025/uk-steel-industry-provides-government-solution-to-address-uncompetitive-electricity-prices-for-foundation-sectors-1 )

‘UK Steel has today welcomed the Government’s decision to rule out proposals for zonal electricity pricing within the Review of Electricity Market Arrangements (REMA), after Secretary of State Ed Miliband recognised the need to protect the security and competitiveness of the UK steel sector.

‘Depending on how zonal pricing would have been implemented, it could have increased industrial electricity prices by more than 10% ..

And it adds: ‘The decision follows warnings from UK Steel, highlighting the risks zonal pricing would have posed to energy intensive industries like steel. Under zonal pricing, steel producers – who are tied to existing sites originally chosen for proximity to raw materials, transport and workforce – would have faced higher electricity costs simply due to their location.’ (my emphasis)

Such ‘competitiveness’ benefits will NOT come to existing and potential future industries across Scotland whilst in this Union, despite an over-abundance of clean energy generation capacity on- and offshore Scotland relative to the present size of Scotland’s economy?

I think it can be demonstrated that:

  • compared to England, Scotland is relatively secure in natural gas reserves relative to present domestic needs – and look at the fuss, look at the priority being afforded by British interest groups to gas production from the Jackdaw field which is of course located offshore Scotland
  • compared to England, Scotland is relatively secure in oil reserves relative to present domestic needs – and look at the fuss, the priority being afforded by British interest groups to oil production from the Rosebank field, which is of course located offshore Scotland. And let’s not forget the significance to the public finances of the UK of the oil & gas profits levy derived largely from companies operating offshore Scotland exploiting Scotland’s natural assets.

To Scotland’s capacity to generate electricity by wind energy, there are the indigenous assets of tidal power, pump storage hydro etc. also available. Upon independence, all these natural assets remain in place and as demand for energy output from them continues – which it will (cf. England’s projected needs) – investment (public and private as necessary) to sustain Scotland’s energy resource exploitation will continue.

And overnight, some of the valuable clean electricity output from these natural assets will become true (not notional) Scottish exports, ones that (only) require meters to record and charge for – and not impacted by Unionist border post scaremongering.

Overnight, pricing of clean energy to address household and industrial needs and wants in Scotland becomes a decision for Scotland’s parliament and government.

Overnight, Scotland’s parliament and government will be able to choose between making public and incentivising private investment in energy saving measures and/or in energy storage and/or in localised energy generation and/or in accelerated development of tidal power projects etc. and/or in new nuclear power plants. Scotland’s energy future will be determined by Scotland’s (our) choices!


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