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The UK Gov's Winter Fuel Rule Highlights the Limits of Devolution

When the new Labour Chancellor Rachel Reeves announced without warning that it was axing the funding for this benefit, the Scottish government said it could not make up the difference out of its fixed budget which has already been allocated.

This highlights the limits of devolution because Scotland is very rich in renewable energy - but because it is part of the UK, Scots are made to pay an artificially high tariff for electricity. That is the real root of the problem which is forcing 39% of Scots pensioners into fuel poverty.

Unlike similar energy-rich countries like Sweden and Iceland, Scots pensioners pay the highest energy bills in Europe. But the Scottish government has no control over how energy is regulated or priced, or the way its energy infrastructure is being used.

New super highway - but Scots still have to pay an artificially high tariff

Labour has greenlit plans for a new energy superhighway to transmit power from Scotland to the south of England - but Scotland won’t benefit from that in the way it would as an independent country. Of course, if Scotland were independent like Scandinavian countries this would be a lucrative transaction that could allow Scotland to reduce the electricity tariff. That is what other energy-rich countries like Sweden, Denmark and Iceland do. The north of Sweden is experiencing a boom as businesses set up shop there to harness cheap energy.

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