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A multi-utility regulator for energy and water should be established in Scotland in the event of a “yes” vote in September’s independence referendum, according to a report published by the Scottish Government.
The report, by the Expert Commission on Energy Regulation, said: “A multi-utility regulator covering electricity, gas and water is an approach adopted by many smaller nations. We think it makes sense in Scotland.”
It outlines the case for a single wholesale electricity and gas market across Scotland and the rest of Great Britain, and a collaborative approach on systems operators.
An independent Scotland would establish an independent National Regulatory Authority to designate a System Operator and put in place governance and operational agreements with National Grid, the current system operator for the whole of Great Britain.
The report said: “Proposals to divide the single system [wholesale market] physically into two separate operating systems would incur significant cost, but deliver no material benefit to the consumers supplied by either system.
“We found no support in the industry, regulators or consumer bodies for such a division and we are heartened by the recognition by the Scottish and UK Governments for the continuing benefits of a single system.”
Great Britain currently operates a single AC synchronous power grid that is closely managed to ensure underlying system security; the provision of critical system interdependencies for supply, demand, and grid services will have to form part of any new arrangements, the report added.
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