Ed Davey gets Scottish 'subsidies' argument wrong on BBC

Talking on this morning's BBC Radio Ed Davey commented:

'the problem that the SNP have is that the amount of these subsidies are going to have to come, to continue, within an independent Scotland.  The question is will that happen.?'   See http://www.bbc.co.uk/programmes/b047c3nl

Well, what will happen? Let's flash forward to September 19th, or soon after when a worried bevy of Big Six electricity companies talk to Ed Davey about what to do after the 'Yes' vote in the Referendum.


Big Six CEO: 'You're not serious about stopping the payments for the windfarms we have installed in Scotland are you? I am now off to see our lawyers about suing you for illegal retrospective legislation depriving us of our assets.'
 
Ed Davey: 'Well, that's I what told the BBC - the SNP would have to take care of this. Look, go and have a chat to Alex; he'll sort you out and arrange for you to be paid by Scottish electricity consumers''

Big Six CEO: 'I already have. He said he'd get hung out to dry by his constituents if he agreed to put up Scottish Bills to pay for your messing around. And we can't increase our electricity prices to make Scottish consumers pay because other suppliers without as much investment in Scottish windfarms will just undercut us.'

Ed Davey: 'Well we could stop people undercutting you so much by stopping electricity trading between England and Scotland. We can put an end to the 'British Electricity Transmission and Trading Arrangements (BETTA)' system - that would mean that Alex would have to cough up....hee hee!'

civil servant (interjects): 'But stopping electricity trading is against the rules of the European Network of Transmission System Operators for Electricity (ENTSO-E), so we can't do that'

Ed Davey: 'ENTSO-E - that's an EU body isn't it? Couldn't we stop Scotland joining? After all it will be a while before Scotland can join the EU and get that sorted out'

civil servant: 'Well, it would catch up with us pretty soon, and anyway Norway and Switzerland are members of ENTSO-E, and they aren't in the EU. On top of that Scottish Power are owned by Iberdrola, the Spanish electricity giant, and they would get the Spanish Government to reduce their resistance to Scotland joining the EU quickly'

Ed Davey: 'Hmmm, but what if WE leave the EU?'

civil servant: (guffaws): 'That's not Liberal Democrat policy'

Ed Davey: (looks flustered) 'Hmmm, you've got a point there........but anyway I'm sure there's some way we can make Alex cough up for all those windfarms, after all people in my constituency would prefer it if Alex sorts it out'

Big Six CEO: (looks sternly at Ed Davey) 'When your constituents find out that we're not going to build the power stations you want us to build because we can't trust you and anyway we haven't got any money left, they won't be very pleased when you start organising a three day week'

Ed Davey: (leans over and whispers): 'Well, maybe, and we don't mean it really - it is just that all that stuff about us stopping paying for the windfarms was damn good propaganda, - y'know, give 'em a good scare! And anyway with a bit of luck I'll be taking over as Business Secretary and I won't have to deal with it for much longer........I'm sure Vince will take care of things for you. He's quite good at doing u turns - look at student tuition fees - it was his department that did it, and they all blamed Nick Clegg and not him!