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Electricity market reform
20/02/2012
Energy Minister Fergus Ewing today urged the UK Government to set up a Ministerial Group to oversee delivery and implementation of fundamental and far-reaching reforms to the UK electricity market.
At a meeting between the UK Government and the three devolved administrations, Mr Ewing argued that new electricity trading arrangements can only be effective if there is a constructive partnership between Governments.
He stressed that the Scottish Government supports the case for reform of the Electricity Market, and highlighted the benefits that devolved powers have brought to developing electricity sector strengths in Scotland and other parts of the UK. He suggested that the current proposals need careful and detailed consideration on how they can best apply in the different parts of the UK market, including the implementation of a Capacity Mechanism, exemptions in the proposed Carbon Price Floor to encourage Carbon Capture and Storage, and an extension to the current Scottish Renewables Obligation system until new arrangements for supporting renewable energy projects in Scotland can be put in place.
Mr Ewing argued that the current uncertainty about the future of the Electricity Market is already causing projects to be delayed.
To fully address these issues, and further develop close and active working across Governments, the Energy Minister suggested a joint Ministerial Group including representatives from the devolved administrations to oversee implementation of Electricity Market reform.
Energy Minister Fergus Ewing said:
"The Devolved Administrations can play a hugely effective role in the Electricity Market Reform (EMR) process to ensure that it is successful. The reforms are critical to the continued success of Scotland’s electricity sector. Delivering Scotland’s remarkable energy resources is crucial to delivering a sustainable and low carbon future generating mix. The EMR process recognises the contribution that energy from each part of the UK will play in delivering a secure low carbon future energy supply.
"For that reason I today proposed the creation of a Ministerial Group with representatives from the Devolved Administrations and the UK Government to oversee the implementation and operation of EMR.
“Over time, this could evolve into a Ministerial Group to oversee the new arrangements once they are in place.
“I look forward to a constructive response from the UK Government”.