How seriously should the SNP take energy efficiency as a policy priority?

Categories: Blog

Given the next government could source a mosaic of policies from more than one party, it is important to consider in what manner smaller parties would seek to influence any future coalition or minority government.

Nicola Sturgeon, First Minister of the Scottish devolved government was lauded for her performance in the recent UK leaders’ debate but green energy interests are likely to also praise the growth of renewable energy during the SNP’s period in devolved power.

In Holyrood, the SNP have been robust in their support of renewables. The First Minister in March detailed the industry’s achievements, ‘Scotland has made huge progress in renewables deployment, generating enough renewable energy to meet 44 per cent of Scotland’s annual electricity demand, generating millions of pounds of community benefit, and displacing an estimated 12 million tonnes of carbon dioxide across the UK.’

The energy efficiency context north of the Border is complex in light of the Smith Commission report. It reported on potential powers for further devolution with the aim of making the Scottish Parliament more accountable and responsible for policy in Scotland (see Smith Commission text box at the bottom of this post).

Whilst the SNP have a very positive stance when it comes to renewable energies, the manner in which they will proactively advance this support for energy efficiency and smaller scale renewables after the election is less clear. The SNP manifesto is spartan at best with regard to these aspects of the energy equation. A desire to move ECO funding into general taxation (which is welcome), a hope that the RHI will be continued and a woolly request that energy and resources are used more efficiently are almost all included in their 2015 manifesto document. Even (sadly) oil and gas is mentioned more!

The scant detail in the SNP manifesto could only be tactical or evidence this area of policy is not a priority for the party.

Intuition would indicate that the former is the case. An understanding of the challenges Scotland faces with regard to fuel poverty eliminate the latter.

Many areas of the SNP manifesto marry closely with Labour policy. The SNP has sought to push Ed Miliband into a corner where he must acknowledge he would utilise the SNP as a crutch should his party be the largest minority element in the next parliament. Nicola Sturgeon’s party have positioned themselves to oppose the Conservatives in all ways they can. This gives voters in Scotland the confidence they can vote for the Nationalists, and still secure a Labour Prime Minister.

All this is evidence of the SNP’s formidable and astute political tactics. Even with staggeringly high polling results, they still look to be gaining ground. The First Minister has stated she will act, intervene and engage with UK politics despite an ongoing commitment to see Scotland as an entity on the world stage once more.

Having established that the SNP are looking to act where possible in Westminster, we need to now look to why energy efficiency should be one of the policy elements the party ought to fixate on.

Vitally, there is the fuel poverty and social justice element – many Scots on lower incomes are grievously afflicted by fuel poverty and energy efficiency is the ultimate cost effective panacea. Between 2012 and 2013 fuel poverty in Scotland increased by 4 percentage points from 35.2% to 39.1%. This represents an increase of around 100,000 households from the previous year, reaching 940,000 in 2013. Demand side measures are the cheapest and most direct route to reducing the burden of energy supply for Scotland, or the UK for that matter.

The SNP will be canny enough to know that there will be political capital to be made from addressing fuel poverty and aware of political costs should they fail to address this blight. Under Nicola Sturgeon, the SNP has made a notable move leftwards. Fuel poverty is exemplary of the sort of issue where securing improved health and social outcomes could further underscore the SNPs reputation as a serious party of government.

Smith Commission recommendations

Section 41 states: ‘There will be a formal consultative role for the Scottish Government and the Scottish Parliament in designing renewables incentives and the strategic priorities set out in the Energy Strategy.’

Section 68 states: ‘Powers to determine how supplier obligations in relation to energy efficiency and fuel poverty, such as the Energy Company Obligation and Warm Home Discount, are designed and implemented in Scotland will be devolved. Responsibility for setting the way the money is raised (the scale, costs and apportionment of the obligations as well as the obligated parties) will remain reserved.’