Chamber and committees

In your opening statement you said that the rise in energy prices was driven by wholesale gas, among other things. Given the current price spike, should marginal generation technology—predominantly gas—continue to set the price, and is there a case for wholesale restructuring of the energy market? If so, what impact could that have on bills, and how quickly?

The deputy convener talked about transmission charges being higher for generators in Scotland, but does that not simply reflect the reality that demand is concentrated elsewhere, further away from where it is generated; that demand customers pay the overwhelming majority of TNUOS—transmission network use of system—charges; and that, therefore, actually, consumers in Scotland are paying a cheaper rate for their electricity than they otherwise would be if we had the market reforms that the deputy convener has outlined? Can you help the committee to understand that?

In his opening remarks, Neil Lawrence said that wholesale gas prices are volatile and that, as a consequence, consumer bills have risen. The UK Government’s energy security strategy will launch a further oil and gas offshore licensing round with a view to improving energy security and affordability. What impact could there be on prices for domestic and commercial customers if the gas that we need were to be sourced locally rather than imported?

The deputy convener and Jackie Dunbar asked pertinent questions about the net zero agenda, and I want to explore the issue. Some people are understandably worried that an energy price crisis could undermine our drive to net zero, while others suggest that the transition can be accelerated if we increase the use of domestic gas—which we heard from an earlier panel has about half to a third of the carbon footprint of imported gas—rely more on nuclear generation and continue the current focus of both Scotland’s Governments on, for example, heat in buildings. What is your view? How do this committee and the Parliament ensure that we strike a balance between continuing the transition and considering the cost to consumers?

I will stick with you for my next question. You said that you are based in the north-east. We rightly talk a great deal about getting people out of cars and on to public transport and/or into electric vehicles using the charging infrastructure that we have heard about this morning. In your view, is that realistic in the more rural areas of Aberdeenshire and similar local authority areas? If not, what are the rural solutions that local authorities need to explore? For example, might local authorities like to see investment in new rail lines and/or the dualling of key roads so that traffic is less polluting and less stop/start, and to ensure that through traffic does not go through town centres, clogging them up for buses, which Paul White is concerned about?

That is fascinating. Thank you.

Thank you.

Ewan Wallace, my next question is for you, but do you have anything to add to Steve Gooding’s answer to my first one?

I will direct my question to Steve Gooding, because it relates to an issue that he raised earlier, although I appreciate that Ewan Wallace might want to come in.

Steve, you flagged up the issue of commercial vehicles and talked about vans and taxis as enabling a town to function. If we want to regenerate the high street, generally and post-pandemic, it is logical that deliveries and commercial traffic will increase—I am thinking in particular of the use of lorries. Paul White talked about the business case for buses hinging on the cost of the vehicle reducing, and I presume that freight traffic is in exactly the same boat.

What can a local authority do to reduce freight and commercial transport emissions, while ensuring that there is not a negative impact on the high street that is equivalent to the one that some argue that the car park tax and a low-emissions zone would have?

I am very grateful for that response. I have no further questions, convener.

I have a brief supplementary question for Steve Gooding. I want to pick up on the comments that you made earlier. Getting the chargers in place is all well and good, but I read last week that the chief executive officer of Rivian is warning of a battery and materials shortage. I also read that Elon Musk at Tesla is saying that lithium prices are going through the roof. Do you recognise that? If so, have any projections been made of how that will impact the requirement for 30,000 chargers and EV uptake over the next 10 years?