Scotland doesn’t have a publicly owned energy provider, whose central mission is to ensure affordable power for citizens and businesses.
Other countries do.
Fuel poverty has reached unprecedented levels in the Highlands and Islands – it is 75% in Shetland, where fuel bills are double the UK average.
So why is Scotland producing a lot of cheap power but the people and businesses are not seeing the benefit?
Market economics dictate what renewable companies charge for power
People often scratch their heads over why the price of renewable electricity is tied to gas in the UK – as far as I can understand it, this is because that is what energy companies can charge for it. They obviously can’t charge more than the price of gas – but any student of free market economics would understand why they don’t sell it to the UK’s Energy Systems Operator for less. It would not be doing the best for their shareholders.
Privatisation of power has not delivered what was promised for it – just the opposite. It is really hurting people – the energy bills Scots homes and businesses are being charged are way out of line with what other countries of similar size and resources are paying.
And what is more – there is an opportunity cost. Scotland should be at the forefront of the energy transition, doing as well as Sweden. But instead, like the Balgy Gap, it is underpowered.