UK Government must explain how it aims to cut energy bills, says minister

The UK Government must set out how it is going to bring down energy bills after proposals to bring in zonal pricing were rejected, Scotland’s Energy Secretary has said.

Energy Secretary Ed Miliband announced on Thursday that the Government would not segment the UK into zones where bills would depend on local supply and demand.

Such an initiative was expected to benefit Scots due to the high level of power generation in the country.

Instead, Mr Miliband promised 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”.

Zonal pricing had been opposed by major energy firms – excluding Octopus Energy, whose boss was in favour of the move – which raised concerns about the impact on investment in renewable energy.

They need to set out immediately how they will sort out the high energy bills faced by the people of Scotland – in an energy-rich country like Scotland, people should not be struggling to pay their bills

Responding to the announcement, Scotland’s Energy Secretary, Gillian Martin, urged the UK Government to urgently lay out plans to cut bills, citing a Labour manifesto pledge from last year’s general election.

“The UK Government promised to cut bills – instead, they have increased,” she said.

“They need to set out immediately how they will sort out the high energy bills faced by the people of Scotland – in an energy-rich country like Scotland, people should not be struggling to pay their bills.

“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.”

But Scottish Secretary Ian Murray said the announcement was “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,” he said.

“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.”