Lobby: The SNP view

It is no exaggeration to say that predicting the make up of the next Westminster Parliament is perhaps more challenging than it has ever been before, but there is no doubt that the result will have a significant impact on the utilities sector in the years to come.

While many aspects of infrastructure are already devolved to Scotland, the result of this election will determine what powers the Scottish Parliament gains and the scope of the Scottish government’s responsibilities in the years ahead.

The SNP recognises that investing in infrastructure is a vital part of stimulating economic growth which is why in 2015/16 we have committed to investing £4.5 billion in infrastructure in Scotland.

However the Scottish government’s scope to act is limited by the nature of the current devolution setup.

With greater responsibility for tax and borrowing powers that go beyond what Scotland is currently on course for, we could do more to support jobs and boost Scotland’s economy. SNP MPs at Westminster will be pushing hard for the job-creating powers Scotland needs in order to do more to boost employment.

That determination to support jobs and the economy through infrastructure investment has been the hallmark of the Scottish government’s approach to economic recovery and SNP MPs will seek to use their influence at Westminster to encourage a similar approach across the UK.

First minister Nicola Sturgeon has put forward sensible proposals to take a more gradual approach to deficit reduction. By taking that approach and increasing departmental spending by a modest 0.5 per cent, around £180 billion would be made available to invest in infrastructure, innovation and creating jobs across the UK over the course of the next five years.

Throughout our time in government, the SNP has been clear that supporting our utilities sector is a key part of our efforts to grow Scotland’s economy and that continues to be our priority when confronted by situations like the current threat to jobs at Longannet.
Under the current system Longannet power station in Fife is required to pay over £40 million a year in transmission charges while an identical coal power station in London would be paid a subsidy. That is a major burden and has been a key cause of the current situation where hundreds of jobs are at risk and the security of electricity supply is jeopardised as a result.

The SNP has long argued for a fairer system of transmission charges and the slow pace of reform is a continued source of frustration. That is why the SNP will continue to press for the kind of changes needed to support growth in Scotland’s electricity generating sector.
As well as undermining thermal power generation in Scotland, transmission charges also represent a barrier to Scotland’s ambitious renewable energy targets.

The SNP has put in place targets of generating the equivalent of 100 per cent of electricity consumption in Scotland from renewable sources by 2020. While we are making good progress towards that with more than 44 per cent of gross electricity consumption was met from renewable sources in 2013, foot dragging over Electricity Market Reform and transmission charging has prevented even greater progress from being made.

That determination to do all that we can to benefit from Scotland’s vast natural resources also extends to Scotland’s water and our determination to make Scotland a hydro-nation.

We recognise the enormous opportunity that comes from Scotland’s water and that is why we have committed to keeping Scottish Water as a publicly owned and operated utility, ensuring that it continues to operate in the best interests of people in Scotland.

Scottish Water’s status as a successful public corporation has helped to ensure that people’s household water bills in Scotland are lower than in England and Wales, something that has been achieved while still investing £3.5 billion in water infrastructure over a six year period.

This election is an important one for the future shape of utilities in Scotland and across the UK and the election of a strong team of SNP MPs in May will ensure that Scotland gains the tools we need to better support jobs and investment in the sector.